Legal question, please help if you can?

hi, i am a customer in a major bank here in ireland, i have my morgage with them, and i also have a current account that my morgage is taken out of every month. I have a credit card with them and it is maxed out. I owe 1,200 euro to that. I haven't been keeping up the repayments as due to the recession and everything i have lost my job and i am on social welfare. My elderly father lives with me and between us we sc by to pay the morgage every month. The last payment i made of my credit card bill was 20euro last week, before that it was months ago. Anyway the bank rang me a minute ago and said i;ve to contact their legal side that the issue is about to go legal, and if it does that all my bank dealings will seize. What does that exactly mean, and could i loose my home. I am going to ring them and tell them that i will agree to pay 20euro's a week until i can afford more, or is it already too late do you think. Please advise if you can i am in a panick before i ring their legal team/advisor.