Continuation of my Saga with ASC

[Mike]

So if you read my previous thread in the Success Story. After I made my payments for 3 months, I called them about the modification and they said that it was still under review but since I made my payments, there should not be a problem with approval. So... two days later I received a letter about intent to foreclose unless I pay them $7000. I called them again, the lady on the phone said that this must be a mistake because I am in the loan modification process. She stated that it looks like I will be approve for payments of $2500, which I am currently paying already. But that I should be getting something in the mail. If I don't get approve then I will have to pay the $7000 and to stop foreclosure. So... now I'm playing the waiting game. Hopefully, I'll have a positive update. On another note, out house is now $110K upside down... Our neighbor is trying to sell his house for $250,000. Should I just cut my losses and try this housing again in 5-10 years? We're scarficing everything.... just to keep this house... Thoughts? Will I be able to by a house if I foreclose after 5 years?? Should I keep the house and hope the government will try to do something about these horrible arms??