If your financial situation will be resolved in the short-term, work with the
servicer or a housing counselor to set up a plan for mortgage reinstatement,
forbearance, or a repayment plan. Explain your willingness to commit to a
payment plan until you are in a better position to resume your regular payments.
If you have enough cash (examples would include a work
bonus, tax refund, or settlement payout), you can reinstate your mortgage by
making up all the missed payments, plus fees and interest, in one lump sum.
A forbearance is a temporary period of time during which a regular
monthly mortgage payment is reduced or suspended. You will need to show that
your situation will be improving soon, and that you will be able to catch
up using an agreed-upon repayment plan.
You promise to pay down past due amounts on a mortgage while
continuing to make regular monthly payments on a property. This is often
tied to a forbearance plan.