Many clients I work with are facing foreclosure and they don't know what their options are. Working with an attorney who handles bankruptcy cases can make the difference between keeping your home and losing it to foreclosure. If the foreclosure process has started, you have basically have four options to avoid foreclosure.
The first option is to leave voluntarily. This option may avoid an actual foreclosure in certain circummstances but you're still losing your home. This can be tricky and you need to be aware that if you leave voluntarily the bank can still foreclose on you unless an arrangement is made with the bank before hand. Still, this is a viable option if you're way under water on your home's value or if your situation is such that you won't be able to afford even modified mortgage payments.
Your second, and probably the toughest option, is to pay back the amount that is in arrears. In addition to the missed payments there will likely be other charges such as penalties, etc. so the payment will probably be several thousand of dollars. The chances are that if the cash was available you wouldn't be facing foreclosure, which is why it's such a tough option.
Your next option is to apply for a loan modification. This process can be dicey, complex, and extremely frustrating but the rewards can be substantial if your application gets approved. The problem here is that lenders are under no obligation to modify mortgages, even if you qualify for government programs like HAMP. If your application for a modification is rejected, your lender could move to foreclose quickly so be prepared.
Ultimately, your most effective option to avoid foreclosure may be found in filing for bankruptcy with the help of an experienced attorney. This option stops any foreclosure activity that is underway as soon as the bankruptcy petition is filed, a valuable benefit especially if you're already late in the foreclosure process. If you are facing foreclosure, it's imperative that you learn the details of all your options as soon as possible. I offer a free confidential initial consultation where you can get all your questions answered and get the right advice to work out which option is best for you.