Reinstatement and Repayment
Reinstatement and repayment plans follow a forbearance plan.
The most desirable resolution to a delinquency is reinstatement. Reinstatement is the act of restoring a delinquent mortgage to current status.
A repayment plan is when the borrower pays the regular monthly payments plus an additional agreed upon amount in repayment of the delinquency for a period of time.
- The borrower must have the financial capacity to bring the mortgage current.
What a Servicer Must Do
- Comply with the requirements and obtain approval of the FHA, VA, RHS or MI.
- Retain any written agreements in the mortgage file
- When the Servicer's collection efforts do not result in reinstatement of a delinquent mortgage, the Servicer should consider offering the borrower a relief option.