Tips to avoid a foreclosure
Negotiate a repayment plan
If you're under financial stress that you know will clear up soon, talk with your lender before things spiral out of control. Generally, a homeowner has about three months before a bank will initiate a formal foreclosure. Lenders also are more willing to negotiate with an honest buyer sooner than to spend thousands of dollars on foreclosure proceedings.
If you're running a month behind, Bankrate advises that you ask to pay your debt in two installments over two months. Make sure you don't enter a plan that lets you pay less than a full month's payment at a time -- that could put you even further behind.