House just went into foreclosure w countrywide

[Joel Fraser]

Hello everyone, back in 2004 I purchase the house of my dreams in a nice neighborhood and price was right. In 2005 I refinance and took a Interest only loan and boost up my mortgage paymnt from $2700 to $3400 a month with an interest rate of 6.5. On top of that I took out a home equity loan for 35k at 14.7 interest rate. My financial situation decrease, went thru rough divorce and lost my ex husbands income, now i'm a single mom w 2 kids and w a high mortgage payment that I cant afford. I fell behind on the loan December of 2007 and I just received the foreclosure papers. The bad news on this is that the house is under my mothers name i'm on title also but its her credit. She has no idea whats going on. I dont want to lose my house. I have been trying to work out a short sale with the bank and putting the house undr my name but countrywide just informed that family members can not buy the short sale. I dont know what my next option is. Not sure if I want to do a loan modification because w the home equity loan I owe my house 487k and the house now is only worth like $410k. I dont even know where to start any ideas would help. I make around 72K a year and my credit is low 700's.