What are my options to avoid foreclosure?

You can 1) pay your loan current (reinstatement), 2) payoff the loan (refinance), 3) enter into a payment plan, forbearance agreement, or loan modification with the current lender, 5) seek lender approval for a short sale, or 6) ask the lender to take the property back (deed-in-lieu of foreclosure). Also, if you feel you have some legal grounds you could sue your lender. Note that the lender is not obligated to accept any of these options except reinstatement or payoff, the others all are at the lenders option.