Are there Options?
You should consult a Lawyer as soon as possible! To defend against foreclosure can expensive and complex. You will end up responsible for an additional legal and appraisal fees. But if you have a VA, HUD, FmHA, or FHA insured Mortgage you may have additional rights in foreclosure. Your lawyer can help you with that.

Getting Financial Advice
The lender is required to send a letter notifying you that you are entitled to financial counseling; if you have missed payments due to involuntary unemployment or underemployment. If they do not you can make a case of it. This can be addressed in your Answer to the Complaint letter. If you need financial advice and have been involuntarily unemployed contact HUD, they can provide you with names of consultants in your area. Or you can call a info line at 211.

Contact the Hope Now hotline ASAP.

You may also want to contact your bank and try to enter mitigation.

FHASecure

This FHA program would help save your home from forclosure if you have an ARM mortgage to learn more here

Selling the Property
Selling your property before the law or sale date is best for you; but keep in mind you need to sell your property for a price that will cover whats owed on the property, that way you will cover your total debt!

Emergency Mortgage Assistance Programs
Some States may have a Emergency Mortgage Assistance Program; you need to contact your states Housing Finance Authority to see if you may qualify.

Foreclosure Eviction Intervention Program
Also a Grant Program that some States may have; you need to contact your states Housing Finance Authority to see if you may qualify.

Deed in Lieu of Foreclosure
When you have little or no equity in your property you may offer your deed to the bank in lieu of foreclosure. If the bank accepts this would help your credit due to the foreclosure would not be on your report. You should get a lawyer to help you with this transaction.

Court Protection in Unemployment and Underemployment Cases
You may have some protection if you have lost your job and should be soon employed again. The court could give you 6 months before foreclosure proceeding. This is a complex law and can very from state to state; you should contact your lawyer for the best advise on this.

Right of Redemption
If you are able to redeem the property it is then reinstated and all your original rights of ownership is then granted back to you.

By redemption; you must pay off the mortgage, all interest, all court costs, title search fees, appraisal fees, and attorney's fees.

Extending the Law Day or Sale Date
To extend the law date or sale date you must file a Motion to Reopen; this asks the court to reopen the judgment and give you more time to redeem your property. You must explain to the court how you plan on redeeming the property, and when. Copies must be sent to all the lawyers and everyone involved. Then the court will set a hearing for you. Please consultant your lawyer.

Bankruptcy
Foreclosure under some circumstances may be prevented by filing bankruptcy. This should be under the advice of your lawyer as this can be very complex.

Foreclosure Filing Schedule

1. You receive a Summons.
2. 2 days after the return date: File an Appearance.
3. 15 days after the return date: File and send a Answer or File a Motion for Foreclosure.
4. 25 days after the return date: Apply to the court for protection based on unemployment or underemployment.