I received a letter from my lender stating I missed my payments. What should I do?

People go into foreclosure for many reasons. The most important thing to do is not ignore the lender and pretend there is not a problem. Banks are in the business of lending, not home ownership. Lenders prefer to avoid a foreclosure whenever possible, so most will be willing to work with a homebuyer. Talk with the lender about a repayment plan, or re-amortizing the loan. If you cannot work out a plan with the lender you should sell your home. If the house goes to auction, the foreclosure will appear on your credit report for 7 years.

Can I just give the house back to the bank?

Yes, if your lender will accept that. It is called Deed-in-lieu of foreclosure.

What if I can't sell my house for what I owe on it?

Let an agent help you negotiate a short sale. A short sale is where the lender agrees to take a loss on the mortgage due instead of putting the home up for auction.

I really don't want to move. Do I have other options?

Not really. Beware of the foreclosure scams. Have an attorney review any documents before you sign them if you are not being represented by an agent. You will get a multitude of letters from investors (most legitimate) who want to buy your property at a reduced rate. They make money on the equity in your home.