Repayment Plan
A repayment plan may be an option if your mortgage company is able to arrange an increase in monthly payments until your loan is brought current. This means that each month you would add a mutually agreed upon additional amount to your regular monthly payments until the amount that was overdue has been caught up.
Loan Modification
If neither a repayment plan nor forbearance is an appropriate course of action, a loan modification may be. A loan modification involves changing one or more of the terms of your mortgage in an effort to help you bring your loan current and prevent foreclosure. If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable.
Your loan could be modified in one or more of the following ways:
Adding the delinquent payments to your existing loan balance.
Changing the interest rate, including making an adjustable rate into a fixed rate (which could change your payment amount).
Extending the number of years you have to repay your loan.
This option is generally considered for homeowners whose financial problems are expected to be more long term.
Frequently Asked Questions
Deed in Lieu of foreclosure ?
Pre-Foreclosure/Short Sale?
Repayment Plan?
Loss Mitigation?
Forbearance?
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