There are options. In my experience, the lender required the owner to file for a loan modification. This paperwork can seem tedious but could prove well worth it, especially with your wishes to stay in the home. I'm unaware of your current status with the bank but let's say you're currently behind on payments. I had a client, who was behind and unable to pay the past due amounts; therefore, the lender tacked that past due amount onto the loan balance and adjusted the payments to a more affordable amount for my client.
If you'd like to stay in the property, this would be your best option. Have you been communicating directly with the loss and mitigation department? If so, they should have a fax number to send this paperwork directly to the lender. Let me know if I can be of assistance to you.
Century 21 Diversified