Mortgage Repayment Plan for Florida Homeowners: How to Catch Up on Missed Payments

What Is a Mortgage Repayment Plan?

A mortgage repayment plan is a loss mitigation option that allows you to bring your loan current by spreading your missed payments over several months. Unlike a loan modification, which permanently changes your loan terms, a repayment plan simply gives you more time to pay what you already owe.

Under a typical repayment plan, you continue making your regular monthly payment plus a portion of the past-due amount. For example, if you are 3 months behind (owing approximately $4,500 in missed payments plus any late fees), a 6-month repayment plan would add roughly $750 to your regular monthly payment each month.

The Consumer Financial Protection Bureau (CFPB) explains that repayment plans are one of several options mortgage servicers may offer to homeowners who have fallen behind. Under federal Regulation X, servicers may offer short-term repayment plans based on an evaluation of an incomplete loss mitigation application, without requiring all paperwork first.

How a Repayment Plan Works

Step 1: Contact Your Servicer

Reach out to your mortgage servicer's loss mitigation department. Explain your situation and ask what repayment plan options are available. The phone number is on your monthly mortgage statement.

Step 2: Negotiate the Terms

Repayment plans typically last 3 to 12 months. The total amount includes all missed payments, late fees, and any escrow advances the servicer has made on your behalf. Your monthly payment during the plan will be your normal payment plus your share of the arrears.

Step 3: Get the Agreement in Writing

Verbal agreements are not sufficient. You need a written agreement that specifies the total amount owed, the monthly payment amount, the start and end dates, and the consequences of missing a payment under the plan.

Step 4: Make Payments on Time

Missing even one payment under a repayment plan may cancel the agreement and could put you back on track toward foreclosure. Set up automatic payments if possible and keep detailed records of every payment you make.

Typical Terms of a Repayment Plan

Duration: Usually 3 to 12 months, depending on the servicer and the amount owed
Monthly amount: Your regular mortgage payment plus a portion of the missed payments
Total owed: Missed principal and interest payments, late fees, and any escrow or property charge advances
Credit reporting: The missed payments that led to the plan may already be reported. Once you complete the plan successfully, your loan is reported as current
No change to interest rate: The original loan terms remain the same

Who a Repayment Plan May Fit

A repayment plan may be a good option if:

You have experienced a temporary hardship that has now passed
You have enough income to afford the increased monthly payment
You want to keep your home and return to your regular payment schedule
You are only a few months behind (typically 2 to 6 months)
You do not qualify for or prefer not to pursue a loan modification

Potential Advantages

Lets you catch up without permanently changing your loan terms
May stop or prevent foreclosure proceedings
Your loan is returned to current status once completed
Typically less paperwork than a loan modification
Can be set up relatively quickly compared to other options

Potential Drawbacks and Risks

Higher monthly payments: During the plan, you pay significantly more each month
No forgiveness: Every missed dollar must be repaid in full
Risk of default: If you miss a payment under the plan, the agreement may be canceled and the servicer may resume foreclosure
Credit impact: The missed payments before the plan have likely already affected your credit. The plan itself does not reverse that damage
Balloon payment risk: Some plans may require a lump sum at the end if the arrears are not fully spread across the term
Not suitable for permanent hardship: If your income has not recovered, a repayment plan may make things worse

Questions to Ask Your Mortgage Servicer

Before agreeing to a repayment plan, ask these questions:

What total amount do I need to repay including fees and advances?
How much will my monthly payment be during the plan?
How long will the repayment plan last?
Will my credit be reported as current during the plan?
What happens if I miss a payment under the plan?
Are there any fees to set up the repayment plan?
Will the servicer stop or delay foreclosure while I am in the plan?
Can I pay off the arrears early without penalty?
What options do I have if I cannot complete the plan?

How a Repayment Plan Compares to Other Options

Repayment Plan vs Forbearance

Forbearance temporarily pauses or reduces your payments. A repayment plan requires you to pay more each month to catch up. Forbearance is designed for temporary hardship; a repayment plan is used after the hardship has ended and you are ready to resume payments.

Repayment Plan vs Loan Modification

A loan modification permanently changes your loan terms to make payments more affordable. A repayment plan keeps your original terms but spreads your arrears over a shorter period. A modification may work better if your hardship is permanent, while a repayment plan works when your income has recovered.

Repayment Plan vs Selling the Home

Selling the home eliminates the mortgage debt entirely and may allow you to walk away with equity. A repayment plan lets you keep the home but requires you to pay back everything you owe. Selling may be the right choice if you cannot afford the higher payments of a repayment plan.

Florida Considerations

Florida is a judicial foreclosure state, meaning the foreclosure process goes through the court system. This gives Florida homeowners more time than in non-judicial states, but it also means that if a foreclosure lawsuit has already been filed, the court may need to approve or acknowledge the repayment plan.

Under Florida law, you generally have the right to reinstate your loan by paying all past-due amounts, fees, and costs before the foreclosure sale date. A repayment plan can be one way to do this without needing a large lump sum.

If the property is not your primary residence, Florida Statute 702.10 allows the court to order payments during foreclosure proceedings. This is different from a voluntary repayment plan and has different legal implications.

Speak with a qualified professional about your specific situation, especially if a foreclosure lawsuit has already been filed.

Hypothetical Example

Maria owns a home in Orange County, Florida. She lost her job and missed 4 mortgage payments totaling about $6,000. She found a new job and can now afford her regular payment of $1,500 per month but cannot pay the full $6,000 at once.

Maria's servicer offers a 12-month repayment plan. Her monthly payment during the plan will be $1,500 (regular) plus $500 (1/12 of the arrears) for a total of $2,000 per month for 12 months. After that, her payment returns to $1,500. Maria reviews the agreement, confirms there are no setup fees, and signs the written plan.

This arrangement works for Maria because her new job provides enough income to cover the higher payment, and she understands that missing a payment under the plan could restart the foreclosure process.

Not Sure If a Repayment Plan Is Right for You?

We can help you evaluate your situation and understand whether a repayment plan or another option makes more sense.

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Frequently Asked Questions

Can I get a repayment plan if I already have a foreclosure lawsuit filed against me?

Maybe. Some servicers will still offer repayment plans after a foreclosure has been filed, but the options may be more limited. Contact your servicer immediately to discuss what is available in your specific situation.

Does a repayment plan remove late payments from my credit report?

No. The missed payments before the plan stay on your credit history. However, once you complete the repayment plan, your loan is reported as current, which can help your credit over time.

Can I pay off the repayment plan early?

Most servicers allow you to pay the full arrears early without penalty. Ask your servicer to confirm before signing the agreement.

What happens if I miss a payment during the repayment plan?

Missing a payment typically cancels the agreement. The servicer may require the full past-due amount immediately and may resume or accelerate the foreclosure process. This is why it is critical to be confident you can make the higher payments before agreeing.

Can I combine a repayment plan with other loss mitigation options?

Some servicers allow a repayment plan after forbearance ends. A repayment plan and a loan modification are typically separate paths. Ask your servicer what combinations are available for your specific loan type.

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