I do play the pod cast and stuff when we are in the care (even though she hates pod cast)  hoping it will rub off on her. 

@Adrian Thomas first off, i hope real etstate provides for you in the best way possible so your little girls can have their father around. in the mean time, since you spend a lot of time driving there are some fantastic pod casts on bigger pockets and great audible books. also look into real estate investor groups in your area and attend to network and learn. good luck to you!

You can bring the loan current if need be, you can do their loan mod if they ever get around to it, or you can sell.

I've been doing my best to build my knowledge base for the past 2 years reading books, listening to pod casts, etc. and its finally time to take the leap.

those are old pod casts and the 2% rule which can be great for cash flow if you can scale to a lot of them,, but it kills appreciation which is were people make their fortunes generally.. unless again you can scale and get to 50 to 100 2% SFR's then its a business its not an investment and you WILL work for your money

Or is there a loan mod as Don suggested?

You will find resources here from blogs to pod casts and forums.

I could probably wake up tomorrow and this would change :), so don't quote me on this, but i think the one thing i can mention in this area is this: When you're trying to do a loan mod, don't be blinded with the money coming in (i.e. don't get greedy), you might get a good deal on the front end, go celebrate for a couple of months, until you wake up and realize that this deal did not match the home owner's situation and he/she is in default again.I always try to make the homeowner put a price they are comfortable with and i try my best to knock-off 10-20% of that monthly PMT to show goodwill and show that i'm trying to keep their homes by allowing them to make their payments on time. 

Next step is to listen to some of the BiggerPockets pod casts together.

Sorry about that mods.