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Summary
With the current real estate market performing at such a high level, the market itself can be a viable alternative to the painful foreclosure process.

Selling Your House Rather than Foreclosure
Fortunately, the current booming real estate market has made it possible for financially troubled homeowners to avoid foreclosure on their home.

Foreclosure usually occurs after a homeowner fails to make his or her mortgage payments for a period of several consecutive months. Banks/lenders are usually willing to accommodate minor financial troubles from their borrowers, but there are times when they have no choice but to evict the homeowner and sell the home. This is usually done at a public auction, as lenders place more importance on getting their money back as quickly as possible, rather than getting the highest price the property can yield. (Auctions tend to see properties go for a discount when compared to houses being sold in the general market.)

While the national foreclosure rate has been fairly steady, it has been increasing in several states, notably Texas and Florida. While losing a home due to lack of payment usually reflects a financial disaster for consumers, the current market has offered many financially troubled homeowners a simple way out – can sell the home on the open market.

Pay-off Debt and Save
The price of homes nationwide has skyrocketed in the last few years, and in many markets, values have doubled or ever tripled. Many homeowners now have huge amounts of equity in their homes and that equity often exceeds the amount owed on the primary mortgage. This is unfortunately not a "miracle" option and will still involve losing the consumer's house, but it does provide a viable alternative that yields some small benefit or savings potential.

The homeowner can sell the home, pay off the mortgage and often come out of the deal with some profit. In many markets a house can be sold rather quickly, quite often before foreclosure proceedings take place. The debtor will no longer have a place to live, but the debt will be repaid, and he or she will often have some level of cash left over. This is certainly a better option than having to go through foreclosure and coming out with nothing.

Contact your Lender
Anyone with financial troubles that prevents them from making their house payments should try consulting their bank or lender first. Often lenders are more interested in working out some manner to get their money, rather than the more costly alternative of removing people from their home.

Still in the end it is comforting to know that the current market may provide a somewhat more attractive alternative that may actually result in some cash or savings.