A repayment plan is an agreement between the lender and the borrower to repay the due balance in increments. If you’re late on your loan payments due to a temporary financial hardship, a repayment plan can help you get caught up on past-due payments once you’ve recovered financially.
How repayment plan works:
- The creditor spreads your overdue payments over a certain period.
- A part of the overdue amount is added to your monthly mortgage payment.
Once the repayment period is over, you should be current on your loan payments and continue paying your regular monthly payments.
The period of the repayment plan will depend on how much unpaid due balance you owe, and how much you can afford to pay every month. Typically, a repayment plan would last for about three to six months.
To know if a repayment plan will work for you, consult with an experienced loss mitigation lawyer in Jackson, MS. At The Rollins Law Firm, we have committed loss mitigation lawyers who can provide you with quality legal advice to help with your loss mitigation process. Call us today at 601-202-3942 to find out what legal actions you can take about your student loans, mortgages, auto loans, wage garnishments, and other types of debts.