More and more frequently, mortgage lenders are aggressively pursuing the FORECLOSURE process once a mortgage gets even a little behind. Often times, the lender doesn’t even care what the reason for the late payments have been. Sometimes, it is possible to persuade a mortgage lender to enter into a “forbearance” agreement, or installment payment agreement, to repay the past due amount over a period of time. If the lender cannot be persuaded to enter into such an agreement, a borrower can force the lender to accept payments over time in a Chapter 13 plan of debt reorganization.
A similar situation may arise where a borrower does not have his/her real estate taxes included with the regular monthly mortgage payment. Generally, once real estate taxes go unpaid for over a year, the county treasurer will foreclose on a property in order to collect these taxes. Some county treasurers are taking a more understanding approach in collecting delinquent tax accounts. Under certain circumstances, an installment agreement can be negotiated to bring the account current over a period of time. If no such agreement can be reached, the taxpayer can force the county to participate in his/her own plan to repay the county over a period of 3-5 years. The county usually will have to accept such a plan of repayment.