The process is initiated as soon as the borrower defaults on his or her payments. At this moment, the lender has the authority to file for a Notice of Default, but in theory, it is exercised only after the payments are uncollected for 60 to 90 days. In order to postpone the auction, the beneficiary will first need to discuss possible solutions with the lender.
If the lender is willing to hear you out, it is likely that the issue can be addressed without the need of a foreclosure. This can include paying extra payments for the missed amount in the future, or by simply refinancing the loan or opting for a loan modification. You can further opt for forbearance where you will be entitled to pay nothing for a certain amount of time, but will eventually make higher payments over the course of the loan. All these options will offer the lender a chance to get back the amount or risk losing a sizeable chunk if other methods don’t work out.
However, if the lender is not willing to modify the terms, you can postpone the sale auction by filing for bankruptcy. Under this, you will be protected by the law, where any attempts made by the lender will be deemed illegal. However, the lender can still pursue with the trustee sale in the bankruptcy court.
Get additional help from the local housing authority and check if you are eligible for any housing relief assistance. Apart from assisting you, they can also act as mediators between you and the lender, and work a way to postpone the auction.
Paying off the loan by obtaining a new one. Although this may be difficult, due to your credit history, it will certainly help you save your home, and pay out the amount to the lender. Your new loan however, will be charged at a relatively higher interest rate.