Your Options

Let 123 pay the bank and bring the loan current, pay all penalties, taxes, and liens.  And make any repairs.  Pay no realtor commissions or attorney fees. We buy the house.  You walk away free and clear.  Or, as and option stay in the house

Rent the house out and become a landlord - You'll run the risk of having to evict someone or have to make expensive repairs if the property is trashed.

Refinance the loan - This may be a possibility if  you can show you have the income to pay the new note and back payments and penalties.

Apply for Government Assistance - Possible as long as there are programs available Varies by state

Option #5:  Do a short sale.  Sell the property for less than what's owed on the loan. You'll pay realtor fees. And, you may still be on the hook for  the difference. 

 Option #6:  Modify the loan  - Negotiate with the bank to modify the terms of your loan, hopefully for a more favorable outcome  than foreclosure.

Option #7: Forbearance - Ask  the bank to temporarily delay the foreclosure. Only possible if the bank is willing to negotiate or by government mandate. 

Option #8:  Reverse Mortgage - Must be 62 or older and must stay in the house until death or you sell the house and pay back the money borrowed plus interest and fees.

Option #9: Deed in lieu of foreclosure  - Give the property back to the bank. Not quite, but almost as bad as a foreclosure.  

Option #10: Bankruptcy - credit's goes in the toilet for years.  You won't be buying anything for years  except at the highest interest rates. 

Option #11:  Do Nothing  - The worst option. No credit for years, prevents you from getting a job or possibly cause termination from your job