Today it was reported that Kristen Bell, the actress who narrates the hit TV show Gossip Girl, has lost her home to foreclosure. Apparently, the Mediterranean-style home Bell purchased for more than $3 million in 2006 sold for $2.6 million in an auction last week.

While Bell has been in many movies and has provided her voice to Gossip Girl since the show began several years ago, she seems to have encountered money problems that made it hard for her to pay her mortgage.

It was also reported that Bell now lives with her fiancé, Dax Shepard, so she has not been thrown out on to the street like so many distressed homeowners in the country.

Ironically, Bell's 4,000 square-foot Los Angeles home was featured in an issue of In Style magazine, where she described loving her home and having an A-list interior decorator help her with the furnishings.

As you can see, even well-known celebrities can get in over their heads with mortgage payments. What people need to know is that there are alternatives to foreclosure.

Oftentimes, it is possible to negotiate a loan modification with the lender. This can lower the monthly mortgage payments you owe, making them more affordable. Another option is to arrange a deed in lieu of foreclosure.

You don't have to walk away from a home you love like Bell did. Working with an experienced foreclosure defense attorney can help reach a resolution that makes the most sense for you.

The important thing to do after you've been served with a foreclosure complaint is to act quickly. In Florida, after a bank or mortgage lender sends you a foreclosure notice, you only have 20 days to respond. Failing to do so can result in you losing your home.

Source: Gather.com, "Kristen Bell Loses Home to Foreclosure," Charlotte Kuchinsky, Feb. 15, 2012