I just filed with my mortgage and home equity banks for financial hardship. I'll keep everyone updated as I go through this process. I'm upside-down on my house (i.e. I owe more than it's worth). The proceeds from selling it would probably pay off the mortage, but not the home equity load, so it will be interesing to see how each lendor responds.

Before filing, as a precaution I opened another savings and checking account at a different bank (I had them at the same bank as my home equity), just in case that lender was able to freeze my assets. Just something to think of.