If you're experiencing trouble the repayments on your mortgage, you are running the danger of a potential foreclosure. To have any chance of avoiding this from happening, your mortgage company might offer you numerous potential resolutions to help prevent foreclosure.

One alternative might be to put you on what is called an interest only payment. Whilst you will not take something off the overall total of your mortgage, with an interest only repayment program you will reduce the payment that you make each month and will allow you to keep your mortgage in good stead. It is a beneficial choice in that you'll be able to avert foreclosure. This sort of loan repayment plan might only be proposed for a period of time of around one year and very rarely maybe even two years.

A 2nd familiar choice is what is known as by mortgage companies as a half payment. With this kind of repayment your mortgage company could reduce the sum of your monthly repayment by around 50%. Whilst this method is not applied as often as the interest only repayment, it’s possibly a beneficial choice to help stop foreclosure from happening.

A 3rd answer that possibly could be proposed is a short sale. A short sale takes place when the mortgage company allows the homeowner to sell the home for a lesser amount than what is outstanding on the mortgage. This option reduces the consequences on your future credit chances.

A 4th choice could possibly be to attempt to reduce your monthly repayments whilst still allowing you to bring down the overall amount owed on the property. Whilst you are talking over this theory, see if you are able to negotiate an even lower rate of interest. Even if it’s only around a quarter percent it will make a huge deviation in the bottom line.

Always think back that the mortgage company isn't apprehensive to foreclose on your home. It is costly in addition to being time depleting for them, so they would like to work with you to try and ward off foreclosure.

Now, whilst your mortgage company might be consenting to propose one of these four choices to you, to aid you in preventing foreclosure; only you'll be able to choose which one is most beneficial for you. Make sure you enquire about all the choices before you make any kind of commitment.