A repayment plan spreads your missed payments across a set period — you pay your normal monthly amount plus a portion of the arrears until you're caught up. It's the straightforward fix when the hardship is over but the back payments are standing in the way.
Typical timeline
Usually approved in 1–4 weeks; foreclosure activity stops once the plan is active and paid
Credit impact
Delinquency stops escalating immediately; account returns to 'current' at plan completion
This path fits when…
- Your income has recovered and you can pay more than your normal payment
- You're 2–6 payments behind
- You want the simplest, fastest path back to current
- You don't want the loan terms changed
How the math works
Say you're four payments of $1,800 behind — $7,200 in arrears. A 12-month repayment plan adds $600 to each monthly payment. You pay $2,400 a month for a year, and at the end you're fully current with the foreclosure permanently closed out.
We negotiate the length. Servicers often open at 3–6 months, which produces payments many homeowners can't sustain. We push for the longest plan your servicer's guidelines allow, because a plan you can't finish is worse than no plan at all.
When a repayment plan is the wrong tool
If the underlying payment was already unaffordable, stacking arrears on top makes it more so. In that case a modification (which rolls arrears into the balance) or a forbearance (if the hardship is ongoing) is the better move. This is exactly what the free case review sorts out — before you commit to anything.
Common questions
Most agreements let the servicer resume foreclosure where it left off, which is why we size the plan conservatively and build in a buffer. If something changes mid-plan, call us immediately — plans can often be restructured before they default.
Reinstatement (paying all arrears at once) ends the foreclosure fastest and cheapest. If you have the funds, do that. The repayment plan exists for everyone who doesn't.