When a troubled borrower is confronted with the possibility of having his property foreclosed on by his lender or the bank, it is easy to feel panic, depression and desperation. But the truth is, you do not have to lose focus at this critical moment. There are several ways for you to control your situation and work out a possible solution. Here are some of the ways by which borrowers can avoid foreclosures.

Forbearance

If you have already missed one or two payments on your mortgage, you may actually ask your lender for a forbearance scheme. Forbearance actually means a temporary reduction or suspension of your payment while you fix your finances. This is a very effective way of stalling foreclosures since it actually gives you more leeway in your payment and allows you to get back on your feet without too much pressure.

Reinstatement

One way to avoid foreclosures is to ask for a reinstatement plan. In a reinstatement program, the bank or lender agrees to put your missed payments in one lump sum and allows you to pay it at a later date. But this is most effective for people who are actually expecting money on a specified period such as a bonus package, tax refund or even insurance proceeds. However, if you choose this plan, you must know that there are certain late fees that you would have to cover to avail of this workout program.

Repayment

A repayment plan is also one way by which borrowers can avoid foreclosures. This allows a homeowner to put his missed payments on top of his monthly payments for a specific time duration until he could finally pay off its entire amount. This plan actually allows a delinquent homeowner to gradually pay his obligation without worrying about piled up rates and interests.

Loan Modification

For those borrowers who feel that they need an entirely new mortgage plan, a loan modification program may be more appropriate. This plan allows you to have your loan rewritten by the bank incorporating more flexible payment terms such as lower interest rates, longer payment period and similar others. The best thing to do is of course to talk to your bank to know the available options to you and what they could suggest that will offer you either a temporary or permanent relief.