My question involves a foreclosure in the State of: Florida

Last year I got pregnant and then I got separated. With the help of mediator, we determined my spouse can only help with $150/mo for baby expenses.

I applied for hardship with my lender and they approved a temporary reduction of my interest rate from 8.0 to 5.5% for 6 months. I was then able to manage. I applied for a 6 month extension last week.

Last month my mom got diagnosed with colon cancer, she lives oversees, no insurance, my dad is disabled so she was the income generator, I am an only child. Not being tragic, just statingt the facts. I have been assiting them with medical bills and spending money.

Still, I have been able to manage, sort of, depleted my savings and cashed out my 401k. I refuse to use my credit cards, that is no solution.
Actually depleting my savings or 401k was kinda silly too. But what is done is done. I have $8000 in unsecured debt I do pay a little more than minimum payment.

Last week I learned I am pregnant again. ok, how much can I really stretch my budget? When I come back to work after this baby is born it will be $400 - $600 on daycare alone.

So, facing the truth I don't think I can keep the house even if they approve to extend the hardship reduction for other 6 months. Which is a very stressful situation. I am current on all my bills and have a credit scor of 740...

What I would prefer, I think is to get them to approve short sale but if they agree not to sue for any deficiency or report me to credit bureou.

If I go foreclosure I am worried how am I going to be able to rent on a decent place with good schools for my kids.

I am reading like crazy, need to decide soon, my next mortgage payment is due on the 16th.
What overall advise do you have?