If you're a few months behind on your mortgage due to a short-term financial setback, but are now financially secure, you may be eligible for a repayment plan. This option will enable you to make up your missed payments and late fees, over a fixed amount of time by adding a portion of what is past due to your regular monthly payment. By the end of the repayment period you will have paid back the amount of your mortgage that was delinquent.
The sooner you reach out to your lender for help, the better they can assist you!
A repayment plan may make sense if you:
- Have recovered from a short-term financial hardship that caused you to miss a few mortgage payments and receive a notice of default.
- Can demonstrate to your lender that you have the funds to repay past-due amounts – along with any associated fees and late charges – and can afford your mortgage payments.
Repayment plans are often combined with forbearance when you can show that funds from a bonus, tax refund, new employment or other source will become available at a specific time in the future.