Received Letter of Acceleration from Wells Today in Illinois

[CCCrazy]

I'm hoping that someone can give me an idea of what to expect next. First, I have an FHA mortgage. I lost my job in 6/2010 - WF put me on a 4 month forbearance in 9/2010 - I have been doing contract work off and on so my investor doesn't consider me to have "steady income" even though it's more then enough to afford my house. What a loose term, "steady income" - it could mean anything. My home has 168k due on my mortgage (no 2nd) and is now worth 132k. I would like to keep it but only with a loan mod. I have been denied a mod once so far.

I received the letter of acceleration today, and of course I can't pay off the 12k past due (nor would i), so I should receive my NOD around the end of February. I will continue to try to work something out with WF. I live in IL which is a judicial foreclosure state - if I fight this, how long can I expect to stay here? I will try to work something out even if I have to go to court mediation.

Oh, and should I continue to make the forbearance payments (one-third of my total mortgage) to show "good faith" of wanting to keep the home? or should I stop paying since I've received the letter of acceleration?

ALSO, so sorry, this is my second edit - as you can see, I filed for C7 in 3/09 - I now have no debt except for this mortgage - can I file C13 to get a loan mod if all else fails?

[enuffznuff]

We don't live in the same state, so I can't tell you for sure. I live in a state where non-judicial foreclosures are the norm, which I understand tend to go faster than judicial.
However, I also had a WF mortgage, and the sale was set for 120 days after the NOD, which actually happened to be today and the sale went through without delay. (we actually got a last minute offer 3 days ago but they wouldn't postpone the foreclosure even though the offer paid them off in full.)

I know people will tell you that you have an eternity, and with a judicial foreclosure you may have significantly more time. I'm just telling you, from the date of NOD, With Wells Fargo, I had 4 months, and there were no delays.