1) file a bankruptcy petition
2) obtain a temporary restraining order in state court
3) sell the property prior to foreclosure
4) finalize a modification prior to foreclosure

Modification of mortgage – Homeowners who are having trouble or have fallen behind in making their mortgage payments may have options that would allow them to avoid foreclosure and bankruptcy. For more information, check this http://www.freddiemac.com/avoidforeclosure/ resource. NOTE: If you are in the process of a modification, that will NOT stop a foreclosure. You must be certain – like have it in writing – that the mortgage company is not going forward with the foreclosure. An oral statement that the foreclosure is not going forward is not good enough and your house may be foreclosed upon.
Temporary restraining orders – This is a good tool if you are attempting a modification, however, you have not yet been approved or are awaiting the final paperwork. Again, an oral statement by the mortgage company that the foreclosure will not go forward or to disregard the notice of foreclosure may still result in a foreclosure of your property. Temporary restraining orders are also a good tool if you have received an offer on your house but it has not yet closed and the mortgage company is refusing to stop the foreclosure.

• Chapter 7 – Also entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the NON-EXEMPT assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors.  Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.” In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed. Amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require the application of a “means test” to determine whether individual consumer debtors qualify for relief under chapter 7. If such a debtor’s income is in excess of certain thresholds, the debtor may not be eligible for chapter 7 relief.
• Chapter 11 – Also entitled Reorganization, ordinarily is used by commercial enterprises that desire to continue operating a business and repay creditors concurrently through a court-approved plan of reorganization. The chapter 11 debtor usually has the exclusive right to file a plan of reorganization for the first 120 days after it files the case and must provide creditors with a disclosure statement containing information adequate to enable creditors to evaluate the plan. The court ultimately approves (confirms) or disapproves the plan of reorganization. Under the confirmed plan, the debtor can reduce its debts by repaying a portion of its obligations and discharging others. The debtor can also terminate burdensome contracts and leases, recover assets, and rescale its operations in order to return to profitability. Under chapter 11, the debtor normally goes through a period of consolidation and emerges with a reduced debt load and a reorganized business.
• Chapter 13 – Also entitled Adjustment of Debts of an Individual With Regular Income, is designed for an individual debtor who has a regular source of income.  Chapter 13 is often preferable to chapter 7 because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a “plan” to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 relief under the means test. At a confirmation hearing, the court either approves or disapproves the debtor’s repayment plan, depending on whether it meets the Bankruptcy Code’s requirements for confirmation. Chapter 13 is very different from chapter 7 since the chapter 13 debtor usually remains in possession of the property of the estate and makes payments to creditors, through the trustee, based on the debtor’s anticipated income over the life of the plan. Unlike chapter 7, the debtor does not receive an immediate discharge of debts. The debtor must complete the payments required under the plan before the discharge is received. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect. The discharge is also somewhat broader (i.e., more debts are eliminated) under chapter 13 than the discharge under chapter 7.