Massachusetts just issued a moratorium on foreclosures due to past subprime lending practices. Please click on this link for more information:
https://www.naca.com/index_main.jsp
In reality, most lenders do not want to foreclose on your home. It's a lot of work for them and they end up losing money. Most lenders will work with you if you simply call them. So many people who have run into difficulty lose their home without ever even talking with their lender. EMC Corporation has set up what they call the MOD SQUAD which is a team of counselors dedicated to modifying loans. Check out these two articles for more information:
http://money.aol.com/news/articles/_a/bear-stearns-subsidiary-emc-mortgage/n20070402082209990036
http://www.msnbc.msn.com/id/18184371/
Lenders really don't want your house! They want to keep your business but they can't help you if you won't talk with them. If you are aware of someone who may benefit from this information, please pass it along!
Cathy