There are many strategies that can be done to avoid foreclosure. From repayment plans provided by lenders to delaying foreclosure through bankruptcy, the cards can deal many hands. One little known mortgage industry trick on ducking foreclosure is to sell your home and buy it back again. The logistics may be unclear from the start, but a little explanation should yield better understanding of how the process works as described below (this option is best when refinancing out of foreclosure is impossible due to low equity.)
The first step is to find a cooperative party willing to deal with you. It could be a friend or a family member. The agreement is simple: sell the property to the person who will agree to sell it back to you. Support your oceanfront property is worth $210,000 but has a $190,000 that is dipping into foreclosure within the next few months. You've defaulted on your mortgage payments, lost your job, and since recovered stability. With little equity for refinance, you can sell the property to your party for $190,000 (assuming the bank waives unpaid interest and fees as part of a short sale), sign a rental agreement to use the property for $1000 a month (with an option to buy, also known as a lease option), and make timely monthly payments every month.
With timely payments made and an improved credit record, you can opt to purchase the property (as your lease option would allow) and use a new and improved refinance loan to buy your home back for the original $190.000. This automatically grants you the title and may award a $10,000+ profit to your seller based on equity. Although this is one of the unconventional forms of avoiding foreclosure, it is a way to keep a home you don't want to lose and others to gain.