With foreclosures predicted to peak in 2009, as unemployment numbers go up, here are some possible remedies.
Reinstatement
Reinstatement occurs when the loan is brought current by paying the total amount past due. According to fair lending laws, you have the absolute right to reinstate your loan within 90 days of being served with a Complaint to Foreclose Mortgage. Lenders will often allow reinstatement of a loan, as long as it occurs before a foreclosure sale.
Repayment Plan
A repayment plan is designed to bring the loan current over time. Typical terms are 1/2 of the arrearage as a down payment, and 1 1/2 payments a month, until the loan is brought current.
Short Sale
You can sell your home anytime before the foreclosure is finished. A short payoff occurs when you owe more on a loan than the house is worth.
Refinance
You may possibly refinance your loan if you have enough equity.
Loan Modification
A loan modification refers to changing the terms of the delinquent mortgage. These changes may include extending the term of the mortgage, adding the delinquency to the mortgage amount, or a reduction in the interest rate.
for more information see: http://www.thehousingsite.org/lending_laws/foreclosure_remedies.php