Oh Stephanie --I am so sorry to hear this and I know it offers little comfort to hear that so many of us are experiencing the same thing. The last thing you want to do is walk away,have you called your mortgage company directly and spoken with them about the adjustments and if there is anything they can work out with you specifically for when the ARM adjusts? Also, if you did not want the house, can I ask what made you decide to keep it or sell it when you got divorced? I wish you well, I too am in the same position, but with an investment property (so you know lenders aren't giving us the time of day). This housing market sux big time!!