While the understandabe first reaction to a notice of pending foreclosure may be panic and despair, don't linger there. Pull yourself together and see if there is any way to fight back.

These days, most lenders would rather work with you than foreclose on you. It's not quite altruism on their part -- rather, it's for their own benefit in most cases. Did you know that it can cost the lender more money to foreclose than to work it out? According to my research, lenders spend an average of $40,000 - $50,000 and sometimes much more in total expenses, fees and losses when they foreclose. In some cases they even have to fight it out in court before they can take your house tot he courthouse steps.

First ask for a Loan Modification. If they are unable to modify your loan to a monthly payment you can comfortably manage, ask for a Short Sale. In a short sale, you put your house on the market and get a purchase offer for fair market value, whatever that may be. You and your Realtor should then make a solid case to your lender as to why they should accept the offer as "payment as agreed" and release you from the former debt. This is a simplification of the process, of course. In reality, it can be a tricky transaction to navigate, but an experienced short sale specialist or distressed property expert can smooth the process, and assist you to a successful resolution. The Property gets sold, the lender nets more money, and you avoid foreclosure and get released from an unaffordable obligation.

Its a win-win situation for everyone involved. You get out from under your debt, and the lender saves money too. Consider the objectives of the lender. They want what's best for their bottom line, and that ususally is not another bank-owned property stting on the market, maybe even languishing there, losing value by the month. Foreclosure costs the lender in advertising, attorneys fees, maintenance, REALTOR fees, repairs, vandalism, etc. From the lender point of view, it might be better to delay the foreclosure and give you an opportunity to short sell. You'll never know unless you ask.

So start by talking to your lender. And then, if that fails to resolve your dilemma, don't just talk to any old agent. Call in a REALTOR who specializes in situations like yours.

Learn more about loan modifications and short sales in Georgia.