No one wants to lose a home, so receiving a notice of foreclosure is a frightening event. It is important that you take any foreclosure notices from your lender seriously. You do have options available, such as seeking a short sale, but you must act quickly to put yourself in the best possible situation so that you do not wind up losing your home by default.
Do not be afraid to reach out to someone to assist you in negotiating with your bank about your inability to make mortgage payments. Besides the possibility of a loan modification, you may be able to sell your home in a short sale if the bank agrees to allow it instead of going forward with a foreclosure. A short sale allows you to sell your home for less than the amount of your mortgage. This can provide you with the funds you need to move to another location and start over again.
Banks prefer to avoid being in the real estate business and they want to get the most for your property possible. You will need to convince your lender that it is wise for them to take less than what you owe but more than they would get in a foreclosure. Then the bank may be willing to go forward with the lengthy process of a short sale.
Your lender may be willing to waive its rights to collect the deficiency in your mortgage in return for the short sale. It is important for you to get such a waiver so that your lender cannot come after you months or years later for the deficiency.