At least you know about it now and can take steps. If the bank hadn't uncovered it, who knows how far into arrears it would have gone?

I know it sucks you can't get a house this year, but babies don't take up that much space at first. We stayed in our one-bedroom apartment for six months after Will was born. If I remember the layout of your apartment correctly, it's approximately the same size as the larger apartment we moved into after the first six months. We didn't panic and buy a house until after I learned I was pregnant with Connor.