I don't know what I should do with Countrywide since the Sale Date is comimg up

Live and work in Albuquerque, NM the past 5 years and currently renting a home here. I still own my home in Minnesota, where I transferred from. Was hoping to keep the home as it is located on valuable lakeshore property. Purchased in 1996 for $65,000, last appraisal done in May, 2006, appraised at $192,500. Have a family member renting the house (rent is a small portion of my mortgage), fell behind on payments due to some family matters. Received notice of foreclosure from Countrywide, which included options to work something out through their Mortgage foreclosure specialists. Was notified by my relative renting the house that a notice of mortgage foreclosure sale, dated January 3, 2008 was delivered to the property by a county sheriff's deputy on January 12, 2008. I received a copy via fax from my relative on January 15, 2008. I contacted Countrywide again to inquire about options available to me, discussed loan modification which would increase my monthly payment to $1284.80 and change my ARM to a fixed rate. I was also asked what available (additional) cash I could put down and I agreed to $500. The representative I spoke with (DeDe Gilbert) finished by stating I would received loan modification documents within 7-10 business days and would need to sign and agree to the modification terms. I have not received anything from Countrywide. I did receive a packet of information from a local (Albuquerque) law firm on January 23, 2008 thanking me for using their referral service for bankruptcy service and they were looking forward to representing me. It included documents for me to sign and file for Chapter 7 (which I haven't). I am seeking your assistance and guidance in this matter. I have browsed through several of the topics on your website and hope this request for assistance is not too late. I am unable to deal with this myself and seek your guidance. I'm also thankful that you're a faith based organization and truly believe the Lord led me here.