Before a lender is permitted to foreclose upon owner occupied residential property, it must give the property owner an opportunity to mediate, or resolve by mutual agreement, a loan default.
The owner must produce their financial information to a neutral mediator, along with a proposal to cure their default. The lender must produce documentation to prove they are the actual holder of the loan and also be prepared to try, in good faith, to reach a resolution short of foreclosure.
If the parties are able to reach a resolution, foreclosure may be avoided. At such mediation the parties may consider such things as deferring payments in arrears, modifying the terms of the loan, or possibly a short sale of the property (lender agreeing to accept less than the full amount due).
Only If the parties negotiate in good faith and are still unable to reach an acceptable resolution, may the foreclosure be allowed to proceed forward.
I would be pleased to discuss your options and represent you, as either lender or property owner, in foreclosure mediation.