There are several steps you need to follow to avoid foreclosure. How far along is the bank in the foreclosure process? If you are only a few months behind, do you have the financial means to make it current (you have the right of redemption period)?
If you were to sell your home as a Short Sale (meaning you owe more money than what you would receive by Selling), you need to meet the criteria banks are looking for as a distressed homeowner, examples are as follows: Job Loss, Medical Expenses, Divorce, Loss of a Spouse (income), etc. If you meet these criteria, and have documented proof on income & expenses, a hardship letter, etc you have a better chance of being successful on selling your home as a Short Sale. You have to do your homework.
I would recommend you speaking with a knowledgable Real Estate Professional who is a 'Certified Distressed Property Expert' who can guide you through the process. You can find an Agent in your area by going to CDPE.com
Best of luck,
David Jaffe-SRES, CDPE
Realtor-Coldwell Banker... more