Lenders will sometimes offer Mortgage Repayment Plans to homeowners who have experienced a short term financial hardship and because of this were unable to make to make a few mortgage payments. Mortgage repayment plans are similar to Loan Modifications and Mortgage Restructurings. Mortgage repayment plans should be used in situations where the homeowner becomes financially stable after a period of short term hardship and can now make their current payments, but is not able catch up on the past due amount. A mortgage repayment plan allows the borrower to establish a plan to pay back the past due interest and fees by escrowing a set amount of funds each month rather than having to pay the full outstanding balance immediately. Repayment plans typically involve a small down payment, with the remainder that is owed spread out over the course of 1 to 3 years depending on the specific situation.

The longer that your mortgage has gone unpaid and the closer to foreclosure that you are, the harder it is to fix your situation using a repayment plan. This is probably not the best option for you if your mortgage is more than 3 months past due.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.