If you cannot make your mortgage payments and already become late; cannot also be able to sale the house to pay off the property and at the same time your lender is also not allowing for deed in lieu of foreclosure, then the best way to avoid foreclosure is filing Bankruptcy chapter 13. The court will decide an affordable chapter 13 plan for you and you can be able to avoid the nightmare of foreclosure.

Anyone who is capable to pay chapter 13 payments after fulfilling his basic living expanses, can file BK chapter 13. In most cases you will retain the possession of your house and protect you from the collection. But you will have to make your chapter 13 payments on time until your chapter 13 plan is completed.