As soon as you see problems, you should talk to your lender. He or she might tell you that the entire market is soft, meaning that sales are slow to occur. Your lender will be sympathetic because everyone is in the same boat. It also means your lender probably has other borrowers with the same sales problems.
Your lender will probably not want to make waves, declare defaults, and start a massive string of foreclosures. Instead, your lender will probably be motivated to work with you and renew your note for an additional three to six months. If you will not be able to make the interest payments during the prolonged period, discuss that, as well. Tell your lender you want a single pay renewal, with all principal and accrued interest due at maturity instead of paying interest every month.
On the other hand, your lender might tell you that home sales are strong, and he or she does not understand why you cannot sell your property. This is actually better news for you because it means you can change your marketing or pricing and sell your house. Discuss alternatives with the banker and come to an agreement regarding a plan. With a realistic plan and your promise to follow the plan, most lenders will renew the note to give you additional time to sell your property instead of foreclosing on it right away.