Repayment plan
A repayment plan allows you to pay your regular monthly payment plus additional funds applied to past-due amounts. Payments are distributed over an agreed-upon period of time.
This option may work for you if:
- You can afford your regular monthly payments and other expenses.
- You have surplus funds at the end of the month.
Loan modification
This option allows you to roll interest and escrow shortage from delinquent payments into the existing loan. You may qualify for an interest-rate reduction to have the term of the loan extended.
This option may work for you if:
- You can afford your regular monthly payment or a slight increase in your payment, plus other monthly expenses.
- You don’t have substantial funds left at the end of the month.
Payment deferral
The payment deferral home retention workout option enables mortgage servicers to assist eligible homeowners who have resolved a temporary hardship and have resumed their monthly contractual payments but cannot afford either a mortgage reinstatement or repayment plan to bring the mortgage loan current.
A homeowner may be eligible for a payment deferral plan if:
- The mortgage loan is 30 or 60 days past due (the borrower is not past due for more than two full monthly contractual payments); and
- The past-due status has remained unchanged for at least three consecutive months, including the month of evaluation.