Here is my dilemma. I just received a letter in the mail from an attorneys office telling me that "the city" I live in is going to file to foreclose on my house because I am renting it out. They said that when I went through there first time homebuyers program part of my stipulations were that i did not rent the house out. When i lost my job and my payments got behind and i called them to get a approval to refinance (for some reason you have to get their written permission if you used their program before you can refinance) they said no that they felt refinancing was not beneficial to anyone. When I explained I could lower my monthly payment by about $250 and remain in my home they still said no. My only other option was to rent it out or I was going to lose it. All payments since that one 90 day past due have been on time. They said they only way they will not foreclose on me is if I give them 58000 in 15 days. If I had that i wouldn't be renting out my home. I have a meeting tomorrow with the Director of the program. I have never in my life heard of someone who is making their mortgage payments getting foreclosed on just because they are renting out their house. If foreclosure does happen (and believe me I'm going to fight this) how long would I have to wait before I would be eligible to buy another home? I just recently got my credit back in order and now this.