Open Question: How can I help out my mom in this bad situation?

Open Question: How can I help out my mom in this bad situation?
The problem is that my mom got separated from my dad and left the mortgage payments all to her. I had recently got married and moved out like a couple months before that happened. She came to me for comfort and help and my husband and I agreed to help her out by just keep paying the mortgage payments and the house would be ours. The problem was that she didn't know that the interes was going to be variable after the 2 years of the loan. At that point we couldn't afford the payment anymore. The house is listed down for pre-foreclosure. She called to this program that supposedly would help in modifying the payments because the loan is much more than what the house is worth. Since it has 2 loans on the house, 1 has modified, but the bigger 1 hasn't and it's been almost 2 months from that. I'm scared that we're going to have to lose the house or should I just let the foreclosure begin and I'll try to get it cheaper or what should I do?
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Open Question: What are some of the processes of foreclosure?
What are some of the repercutions of a foreclosure? Will I be able to rent a place if my house is foreclosed on? Will I be asked to pay the remaining balance on the loan of my house?
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Tags: home equity loan, foreclosure