If you get a foreclosure notice on your home, be sure to explore all of your options to avoid the foreclosure. The very first thing you should do is consult with an attorney and also pursue these options:

Negotiate a new payment plan with more affordable loan payments.

Negotiate a smaller mortgage payoff (known as a "short sale") with your lender. With the surplus of foreclosures, many banks may be willing to "forgive" the borrower’s debt with a smaller loan payoff amount and the sale of the property. 

Have the bank show instruments proving that they actually own the loan. Because banks have so many loans, loan papers can become lost and the bank may be unable to show proof of actual ownership of the loan. Use this opportunity to negotiate a new loan with an affordable payment plan.

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