How Loan Repayment Plans Work
If you have missed payments on your mortgage, then you know that the lender will be asking you to pay all the past due amounts plus penalties. If all that money is not paid in full, then foreclosure may be forthcoming.
At this point, paying a lump sum of all the delinquent mortgage payments is just not financially possible. A repayment plan will let you repay part of the delinquency each month, along with your regular monthly installment.
Repayment Plan Eligibility
You will probably be eligible for a repayment plan for the amount that is delinquent if your financial circumstances have stabilized. If you’ve suffered a short term financial hardship that has caused you to become delinquent, but now you are financially back on your feet, then all you need is some help getting caught up. In this case, a repayment plan is a common option.
If you are considering negotiating a repayment plan with your lender, you might as well get some free advice before doing so. Talk to a nonprofit housing consultant from a HUD-approved agency and find out how likely you are to qualify for a repayment plan based on your individual mortgage and financial situation.