[mom-from-missouri]

I think they told you right. Years and years ago, I was in the same situation, after being laid off for 11 weeks, (then hired back by the same company-they over cut on a cutback). I was told the same thing--pay it all at once, or foreclosure. I went to my local bank, and got a loan. This was back in the days of $198 a month housepayments. They loaned me 4 months of payments, and I had 18 months worth of payments to the bank to pay it back. I went back to work on a different shift that enabled me to get a part time job, and paid it back in about 6 months.
However, a supervisor may be able to waive it if you set up some sort of payment arrangements. It would cost them more money to push foreclosure than it would to set up arrangements with you.