During the mortgage crisis of 2007, many homeowners found themselves losing their homes because of rising interest rates on adjustable mortgage rates. Losing your home to foreclosure is devastating but it is not always necessary to allow your home to fall into a foreclosure situation.

The first rule is to find ways you can pay the mortgage payment. If your payment is too high because the interest rates went up under the terms of an adjustable rate mortgage, you have the option of negotiating with your lender to arrive at a mutually agreeable payment plan, which would avoid foreclosure. Most lenders would much prefer avoiding the foreclosure process. 

With this fact in mind, you can change the negotiation to your favor. If you can show an effort to make at least 60% of the house payment, it may be possible to negotiate the payment down to your needs in order to avoid foreclosure.

Another way you can avoid foreclosure is by negotiating with your lender to complete a short sale.  Your lender will be your guide to complete this process.