My husband recently lost his job and we have subitted for a loan modification. The servicing co. claims they can go as low as 2%, but they can take up to 60 days to respond (by experience they take the full 60 days).  60 days leaves us in a lerch because we already know we can't make next month's mortg. payment much less 2 months and our credit will be affected. How can we even rent once our credit takes 2 hits if credit check will need to be done.  I don't think that even with 2% we can afford the payment along with the utilities.  We don't want to short sale and ruin our credit nor do we want to hinder our credit to the point of almost no return.  We don't know which way to go! Should we modify and try and rent the home at the modification price so we can try to sell and purchase again in another year? We have 4 kids and most places we have been looking for to rent/rent to own are unaffordable if large enough for the family or if affordable too small to even squeeze 2 kids per room, which would be hard since we have a college student and an 11 yr old. The other two are ok they already share a room.  We are thinking of "Rent to Buy", but anything comfortable for us to fit in is too high a monthly rent anyway.  We have worked so hard to own a home and get our credit to a point that we can get another mortg. loan and now we may have to start from scratch, but with no where to go.  Where can we possibly go from here?