Repayment Plan

If you are having trouble with your mortgage payments because of past due amounts and mounting late fees, you may feel like you can’t catch up. To help get you back on track, you might be eligible for a Repayment Plan.

"I can pay my mortgage now, but I just can't catch up on the past due payments."

What is a Repayment Plan?

With this option, you spread out your past due amount—added on to your current mortgage payments—over several months in order to bring your mortgage current.

A Repayment Plan may be an option if:

  • You are ineligible or don’t want to refinance
  • You are facing a short-term hardship
  • You are a couple (or several months) behind on your mortgage payments
  • You can now afford your monthly mortgage payment

Repayment Plan Calculator
Use this tool to estimate how a repayment plan might help you.

What are the benefits?

  • Bring your mortgage current and resolve your delinquency
  • Catch up on your past due payments over an extended period of time
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure

How does it work?

If you qualify for a Repayment Plan, typically your past-due amount will be spread out over a set time frame (e.g., 3, 6, 9 months) and added on to your existing mortgage payments. Other repayment terms may also be available during the repayment period (check with your mortgage company for details on your specific options).

Your mortgage company may have you sign an agreement that will outline how you are going to repay your past-due amount, such as the length of the repayment period and the specific terms.

Repayment Plan Calculator
Use this tool to estimate how a repayment plan might help you.

Next steps

Step 1

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Step 2

Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble bringing your loan current, and whether this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
Step 1 Contact your mortgage company or the Fannie Mae Mortgage Help Network—Tell them you are interested in a Repayment Plan and you want to see if you qualify.

This option lets you get caught up on your past due payments over time. But you need to contact your mortgage company as quickly as possible to determine if you are eligible for a Repayment Plan. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor.