Tips for what you can do NOW to Avoid Foreclosure

Don't wait. Expect long wait times when calling your servicer. Ask for the "home retention team." If you are put on hold, wait until someone comes back on the line. Keep a record of whom you speak to and what was said.
Know your options. The Making Home Affordable Mortgage Modification Program is the government's main program to prevent foreclosures. More than 2,300 servicing companies participate, covering about 85% of all single family home loans. Check with your servicer to see if a new loan that could lower your payments is an option. Check out HUD.gov or MakingHomeAffordable.gov
Build a budget. Make a list of your monthly expenses and ask what sacrifices you are willing to make to remain in your house.
Manage the process. You will have to fill out lots of paperwork. Take your time and be patient. Be honest and realistic when answering questions. Make copies of everything before you send. Verify the recipient received your docs.
Try again. You can reapply if you are turned down. If you don't qualify, maybe it is time to short sale your home. Exit gracefully before foreclosure is at your door.