Being unable to keep up with your monthly mortgage payments is scary, but it's a reality for many Americans. If you've recently begun to receive threats of foreclosure, however, it's important that you do everything in your power to avoid losing your home. After all, there are many ways to go about stopping a foreclosure, depending at what step of the process you find yourself in.

Apply for Loan Modification

You certainly don't want to wait until a few days before your home will be auctioned off before you decide to give this a try, but if you do it early on in the process, there's a good chance this will stop your foreclosure. A loan modification can delay the foreclosure process, since most states prohibit foreclosure proceedings from taking place while an application for loan modification is pending. Plus, if you're approved for the modified loan, your monthly payments may be much more manageable; from there, as long as you keep up-to-date on your modified monthly payments, you'll no longer be facing the threat of foreclosure.

File for Bankruptcy

If foreclosure proceedings have already been under way for a while, then you may need to take more drastic measures to avoid losing your home at this point. Specifically, filing for chapter 7 or 13 bankruptcy could be your best solution, as foreclosure proceedings must be stopped immediately in the event that the homeowner files for bankruptcy. Understand, however, that even if you file, your mortgage lender can still file a motion to continue with the foreclosure proceedings. However, even if they're permitted to do so, the entire process can take months. If nothing else, this option will buy you some time, if not save your home.

File a Lawsuit

Finally, if your lender has acted unlawfully throughout any part of the foreclosure process, you may be able to file a lawsuit against the company to have the proceedings halted. There are many situations in which a lawsuit could save your home, such as when your mortgage company violates your homeowner bill of rights, does not act in compliance with state foreclosure laws, or cannot prove that it owns the loan's promissory note. If you're thinking about filing a lawsuit, your best bet will be to work with a foreclosure defense attorney, who will be able to help you develop your case and present it in front of a judge.