I hate when agents say, "We can stop the foreclosure." They are making promises they can't keep. They can TRY to stop the foreclosure but they cannot guarantee anything. Don't listen to anyone who guarantees they can stop your foreclosure and by the way, it is ILLEGAL for someone to charge you money up front to do so.
Is your home listed for sale as a short sale? If yes and you have an offer submitted to the bank for consideration, you may be able to postpone the foreclosure. No guarantees though. I sell a lot of bank foreclosed properties and most of the time those homeowners were trying for a loan mod or doing a short sale at the time of the auction.
Bankruptcy only seems to delay the inevitable. You could declare BK and lose the house three months later. Great - now you have a BK and a foreclosure on your record. Talk to a real estate attorney and get advice before you do anything.
In summary - the loan modification process does not stop a foreclosure and neither does a short sale in the works. Bankruptcy might buy you more time but it doesn't seem to be a long term solution from what I've seen. Making your house payment is the only surefire way to prevent foreclosure.
If you are considering a short sale to avoid foreclosure call a qualified Realtor and get someone with a lot of experience doing short sales to help you.