14 Options to prevent foreclosure
Partial Payment
Negotiate with the lender to make smaller, partial payments while you recover from hardship.
Negotiate Smaller Payments Temporarily to Pause Foreclosure and Stay in Your Home
What Is a Partial Payment Agreement?
A Partial Payment Agreement is a temporary arrangement between you and your lender where they agree to accept less than the full mortgage payment each month for a short period of time—instead of foreclosing.
It’s not a long-term solution, but it’s a powerful short-term relief option that buys you time to catch up, apply for a loan modification, or explore another exit strategy.
Who Should Consider a Partial Payment Agreement?
- Homeowners who are recently behind (30–90 days late)
- Those who have temporary hardship (job loss, medical, divorce)
- People who can pay something—but not the full payment
- Borrowers who need 30–90 more days to recover or qualify for other programs
- Anyone seeking to pause foreclosure without applying for full assistance yet
- You contact your lender or servicer and request a partial payment arrangement.
- Provide basic financial info and a hardship explanation.
- The lender may allow you to pay half, two-thirds, or another reduced amount each month for 1–3 months.
- The lender agrees to pause foreclosure actions during this period.
- After the period ends, you must:
- Resume full payments, or
- Enter into a formal plan (modification, forbearance, or refinance)
Benefits of a Partial Payment Agreement
- Pauses foreclosure quickly—often within days
- Allows you to pay what you can afford now
- Buys you time to apply for other options
- Keeps your account in “good faith” with the lender
- Requires less paperwork than other programs
Considerations & Risks
- Not all lenders offer this option, especially after 90+ days late
- It’s temporary—not a permanent solution
- Must communicate regularly with your lender
- Missed amounts are still owed later or rolled into another plan
What You’ll Need to Apply
- Mortgage statement
- Proof of income (if available)
- Short hardship letter or explanation
- Amount you can afford to pay monthly
- Contact with your lender’s loss mitigation department
Timeline
- Request review: 1–3 days
- Approval and agreement: within 5–10 days
- Agreement length: usually 30–90 days
- Full solution required afterward (modification, refinance, etc.)
Real Example
David lost his job and fell 2 months behind on his mortgage. Instead of foreclosing, his lender accepted 50% payments for 60 days under a partial payment agreement. He later secured a new job and qualified for a full loan modification.
Frequently Asked Questions
Q: What if I still can’t make full payments after the agreement ends?
🅰️ That’s okay. Many homeowners transition into a loan modification, forbearance, or a sale. The key is to keep communication open with your lender.
Q: Will this hurt my credit?
🅰️ You may still be reported as delinquent, but not as a foreclosure. The impact is less severe, especially if you keep paying something.
Q: Can I request this even after receiving a Notice of Default?
🅰️ Yes—especially if you act fast. Lenders are more flexible when you reach out early and show willingness to pay something.
Need Help Negotiating a Partial Payment Agreement?
We’ll guide you step-by-step and even contact your lender with you.
- Draft your hardship letter
- Create a payment plan proposal
- Help you communicate with the right department
- Use this time to prepare a long-term solution