Another option to avoid foreclosure is to short sale the property. Lenders are now more willing than ever to accept less than the amount owed on the loan and mark your credit 'Settled for amount less than owed' and sometimes in 'Paid in full' depending on the situation.
Please visit my website for more information on the process at http://www.CarolinaBeachShortSales.com
Feel free to call me with any questions with no obligation at 910.619.4295.
David Fann, Broker/REALTOR http://www.DavidFann.com