Neighborhood Housing Services of Phoenix

Options to Foreclosure

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Repayment Plan
When you fall behind on the payments, you'll talk first with someone from the mortgage servicer's collections department. The collections department's aim is to get you caught up, and the sooner the better. The employees there will demand a least a partial payment now and the rest of the payment soon - and a promise that you'll pay on time each month after you're caught up.

Effect of a successful repayment plan on your credit record: Minor to moderate, depending on how far you fell behind. Less than 30 days late will have minimal impact on your record; 30 to 59 days late will put a minor but noticeable mark on your record; 60 to 89 days is worse. If you fell behind by 90 or more days, but eventually caught up, your credit score will drop quite a bit. When you fall behind by 30 days or more, that is counted as a delinquency. Two or more delinquencies are worse than one.