Foreclosure laws vary from state to state, and it is imperative that you know and understand the applicable laws in your state. In the state of California, for instance, your lender cannot begin the foreclosure process until at least 30 days after contacting you with the intention to foreclose. It is incumbent upon your lender to work with you toward a solution that would allow you to avoid foreclosure.
Once the foreclosure clock begins ticking, the worst thing you can do is nothing at all. Eventually, you will lose your home, and you will be stuck with a black mark on your credit report. By doing nothing, you are guaranteed to make a bad situation worse.
It is also in your best interests not to simply abandon the property. By remaining in your home while trying to find the best possible solution to your financial dilemma, you have far more rights and protections available to you than if you leave the property vacant.