Need help badly,can someone please answer??

Live in California.
I lost my business (Courier Service) last year,and it's been a downfall ever since.Being behind on everything,I called a Lady (she helped me refinance several years ago),and explained the situation.The week before I contacted her,I got a letter that informed me my second Mortgage (through owner's widow)was in forclosure.The lady I had called worked for a Company who helps Refinancing/Dept Conseling.She came by the house we told her all about the situation,she reassured us not to worry,she would take care of it.At that point I still had the money to pull the second out of forclosure,but she said not too,she would call the people.She asked for 300 Dollars for the Appraiser (have a receipt)and I haven't seen her since.On and off she called and kept telling me she was still working on our case,the Appraiser never showed.She explained she did a "drive by appraisal".To make a long Story short(or is it to late)yesterday we had a notice on our door,informing us the house was going to be sold at an Auction on March 15 Th.Scared to death I called her,she wasn't in,a co-worker called her at home and she told her to tell us to file Bankruptcy.I have this bad feeling this lady took the 300 Dollars,never contacted the Forclosurecompany and I am very amd and scared.Should I contact the forclosure people or is it to late,what if she did not do "her Job" like she claimed she did.I would call the owners widow,but she is not approchable at all,she made it clear after her husband died she would hang us out to dry if we fall behind....regardless of what the situation would be.I called a Laywer,but he wants 700 Dollars that I don't have.I got the BK papers and I'm doing it myself,but I'm very scared.Will I loose my house,what can I do.Thanks,Anita

Once you file bankruptcy papers, the foreclosure proceedings should stop under the rules of the court which grant an automatic stay on such actions. However, you must have very little time at this point if the foreclosure auction is posted. With so much at stake, I urge you to contact a few more lawyers and see if you can make payment arrangments with a lawyer (yeah, it's a long shot but you might find some compassionate soul who will help you). You might even try your local legal aid society. They don't usually handle bankruptcy but they might be interested in the foreclosure issue. Good luck.