If you are at the stage where you are wondering how to avoid foreclosure, you must be behind on your mortgage payments or know that you will not be able to make your payments in the future. Follow these steps to keep from being foreclosed upon
Analyze your financial situation. Calculate how much, if anything, you are going to be able to pay.
Call the lender. Speak with someone in customer service. Tell him your financial situation. Be polite and be up front. The last thing a lender wants is to take back a property through foreclosure.
Ask if there is some way you can work out a compromise regarding your payments until you are able to get back on your feet or sell the property.
Realize this is a temporary fix. The lender, if it is willing to work with you at all, will only do so for a couple of months. It will want to see you make every effort to get the loan back on track (out of default) or sell the home.
Make plans to remedy the situation, either through gaining additional income (by, for example, taking a second job) or putting the home on the market (putting it up for sale).
Keep in touch with the lender. Even if you are unable to keep your end of the agreement, let the lender know what is going on. The lender will be much more willing to help you if you are willing to make an effort.