| Repayment plans are a useful tool if you have | | | | $4800 you are behind and divide by 24 months. That |
| experienced a short term cash flow problem that | | | | equals $200 per month. Adding that $200 per month |
| caused you to miss a number of mortgage | | | | to your regular mortgage payment of $1200 equals a |
| payments. | | | | new temporary payment of $1400 per month. In 2 |
| Let's say, for example, that you lost your job and | | | | years, your payments will be caught up and your |
| spent six months looking for a new one. During that | | | | payment would revert back to the original $1200 |
| period with no income and without any significant | | | | payment for the duration of the loan. |
| savings you were forced to stop making your $1200 a | | | | The only downside for you is that your monthly |
| month mortgage payments between months three | | | | payment will rise in the short term, but the reality is that |
| and six of your unemployment. You are now | | | | this is a far better option than losing your house to |
| employed and able to begin making mortgage | | | | foreclosure and ruining your credit or trying to sell your |
| payments again but do not have the lump sum needed | | | | house for possibly less than you paid for it in the |
| to make up for the missed payments. And because | | | | current sluggish real estate market. |
| you are four months and roughly $4800 behind on | | | | And this is a pretty attractive option for lender's as |
| your mortgage, the lender has decided to foreclose on | | | | well. Foreclosure is expensive and a paying borrower |
| your home. | | | | who is in the process of catching up on missed |
| Here is how working out a repayment plan with your | | | | payments is likely going to be a preferred alternative to |
| bank can save your home. Let's assume the bank | | | | foreclosure. |
| has agreed to a 2 year repayment plan. Take the | | | | |