What will happen after 3 failed attempts is that they will no longer view any forms you submit unfortunately.
The problem here is that you did not keep your account recovery information up to date. Many people do not realize they need to do this and they end up having to use the form which can be very difficult.
It can be very difficult if not impossible to get the account back if you cannot verify with the form. I have spent many hours researching the options and have helped hundreds of hotmail users that are in your same position.
The method I am going to share with you are not made public by hotmail but they do in fact work in some cases. You will need to be patient though as it could take a couple days. Considering you are about to lose your account though, a few days is worth the wait. It is incredibly important that you very carefully follow my instructions so you complete the procedure correctly.
An option is to reach out to a hotmail representative on their forums, they have access to look deeper into the account and sometimes can help in these situations.
What you can do is reach out to them in their public forums and they may message you or ask you to message them privately with more information.
Go to the following link and click Participate and then click Ask a question on the menu at the top (you must be logged in with a hotmail account so please create a new one if you do not have one). A box will appear. In that box type what has happened. Remember to be very polite and give as much information as you can. Here is the link to the forums:http://answers.microsoft.com/en-us/outlook_com/
Microsoft/Hotmail takes account security very serious which is why they make this so difficult and make you confirm all of that information. It is to prevent unauthorized access to your account.
I hope that this information helps you get into your account. I would kindly ask you to remember when you are asked to rate my service you are rating me personally. You are not rating hotmail or their procedures or your frustration with the situation which I know is difficult.
If you need further clarification please let me know.