My rental property is a money pit!

[Sara H.]

I bought a triplex in 2006 with plans of flipping it. I wasn't able to do it quickly enough before the market bubbled. So I've tried to set it up as much as possible. I was advised to set up an LLC to run the property as a business, and quitclaimed it in the name of the LLC. I've had the property listed for sale since 2007 at the amount I owe on it...with absolutely no luck in selling. Now I'm stuck with a rental property that is decreasing in value, is difficult to rent for the amount it went for a few years ago, is on an interest only ARM loan (huge regret), and now has a $6,000 emergency repair in process. Since purchasing this property I've gotten married and pregnant. I've been dumping all my savings into keeping this property afloat but I just don't know how I can continue to do that with a child coming. I feel absolutely horrible at the thought of defaulting but I don't know what else to do. I've lost about $40k in cash already on this property in the form of repairs to flip it, lost rents over the last 5 years, and now this emergency repair. I'm sick over the thought of adding to the foreclosure crisis but what do I do? So far I am current on the loan but I most likely will not be able to keep that up for more than another month or two.

So here are my questions:
What do I need to be aware of before I call my mortgage company? Should I try for a short sale (I've heard they are basically impossible in Utah)? If it goes into foreclosure do I still collect rents? If it goes into foreclosure are any of my personal assests (my home) at stake... what can the mortgage company come after? If it forecloses will it effect anything I currently have - or just my credit and all that entails?

Thank you in advance for any advice or wisdom shared!