If you can afford it, you should catch up on your payments as soon as possible. If your lender has to take additional legal measures, you will be responsible for all of the fees, so stopping the process now by paying what you owe will save you a lot of money. Make a plan to catch up on your payments if at all possible.
Lenders are not required to offer a payment plan, but they must accept the whole amount owed, including fees and charges. Make contact with the lender to see if you can come to an agreement on how much you’ll pay and when you’ll be able to catch up. If you demonstrate that you will be receiving a big sum of money soon or that your income will be increasing shortly, you will be more likely to be able to catch up and then continue making If you and the lender come to an agreement on a repayment plan, be sure the agreement is in writing. You should write to the lender to indicate that they have decided to accept payments instead of initiating any legal action, as well as the payment amounts and dates. Include the name and phone number of the individual who agreed to payment by phone. It’s better to send the letter certified mail and keep a copy for your records.
If your mailing address has changed, make sure your lender knows how to contact you so that you are alerted if the house is to be sold. Even if you’ve given your lender this information in writing, you should still file a Request for Notice with the County Recorder’s office in the county where your home is located. If you are able to come to an agreement with your lender to catch up on your payments, make sure to make all of your payments on schedule and retain record of your payments.
Consider how you might be able to get more money to make up for missed payments. Someone in the family may be able to assist by working part-time or full-time. People may be able to borrow from relatives on occasionally. Provide written documentation to your lender that your family can now afford the house payments if you are able to make arrangements. This may be a signed agreement to rent out a portion of your property that specifies the amount of rent that will be paid to you, or a pay stub from a family member to demonstrate increased income. If a relative agrees to lend you money, get a written agreement and consult an attorney about a secured loan (a promissory note and deed of trust). If you have to file for bankruptcy, this may help to protect your relative’s investment.