Loan Repayment Plan

The most common way of resolving a loan default is to work out a plan (Repayment Plan) which will let you repay part of the delinquency each month, along with your regular monthly installment.

You may be eligible for a Repayment Plan for the amount you are delinquent, if your financial circumstances have stabilized. If you have realized a short-term financial hardship that has caused you to become delinquent. Then you are now financially back on your feet and need help getting caught up. If this is your case, you can negotiate with your lender to distribute your past-due amount over a set period of time, usually 18-24 months, depending on your circumstances. Your lender will usually ask for 25-50% of the arrearage down and the remainder will be paid out over a period of months. You will need to provide financial information to prove that you are now capable of making this responsibility. Remember, this monthly amount is in addition to your usual mortgage payment.

This type of solution to your mortgage foreclosure is generally accepted very well by lenders. You will need to complete a detailed financial portfolio of your income versus your expenses to show the lender what payment that will work with your current income along with what down payment you can afford. This will bring your account up to date immediately and keep you secure in your home.