Home>What you can do if you catch up on back payment?

What you can do if you catch up on back payment?

August 11, 2022

By Site Producer Attorney & Retired Law Professor

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.

By |Published On: August 11th, 2022|Last Updated: September 21st, 2022|

Share this article

About the Author: Site Producer

Diane L. Drain - Bankruptcy LawyerDiane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

RELATED POSTS

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION