The simplest way to stop a foreclosure is to resume payments. However, for that you will require to convince the lender that you will make a large enough payment at the last minute, or within a certain time frame.
In order to make the payment, you will need to figure out assets which can be readily turned into cash. You may need to give up on your car, jewelry or even realize your insurance policy. However, consider the opportunity cost before taking such a route since you must already be suffering from a financial crisis. The option is certainly not attractive but will ensure the prevention of a foreclosure.
One way to buy some time is to file for bankruptcy under chapter 13. This will ultimately prevent the lender from selling your house, and demand payments from you for a certain time period. In the meanwhile, you must make sure that you sort out your finances by improving your income stream.
Take advice from an experienced attorney, who will further sort out the paperwork for you in case you decide to file for bankruptcy. One can also take help from the U.S Department of Housing and Urban Development, which provides a housing counselor.
Forbearance is a type of special agreement between you and the lender where the latter decides to hold back or delays the foreclosure process. In return the borrower agrees to catch up on his payments within a certain time frame. While the ball is still in the lender’s court, the forbearance period allows borrower to keep his end of the bargain, and in return get his home back. While the exercise will increase the total amount paid, if the borrower can guarantee or convince the lender that his payments are coming – in the form of tax returns, bonus etc - foreclosure can be stopped.