How to Get Caught Up on Your Mortgage: A Complete Guide to Curing Mortgage Arrearages, Loan Modifications, Repayment Plans, and Chapter 13 Bankruptcy

Falling behind on your mortgage is one of the most stressful financial problems a homeowner can face. One missed payment can quickly turn into several, especially once late fees, escrow shortages, and legal fees start piling up. Many people do everything they can to “catch up,” only to discover the delinquency never seems to disappear because of how mortgage servicing works.

The good news: you can recover from mortgage arrearages, and there are several pathways—inside and outside of bankruptcy—to help you save your home. This guide explains what arrears really include, how lenders apply payments, and the practical tools available to bring your mortgage current.

What Are Mortgage Arrears?

Mortgage arrears represent the total amount necessary to bring your loan current. This is more than the missed payments themselves. Your arrears likely include:

• Missed payments

• Late fees

• Escrow shortages from rising taxes or insurance

• Inspection fees

• Corporate or processing fees

• Foreclosure attorney fees

• Forced-placed insurance charges

• Accrued interest

• Returned payment fees

Why You Stay Behind Even When You Resume Paying

Mortgage servicers apply payments to the oldest outstanding installment. So if you miss March, but pay in April, the April payment applies to March—and you still show 30 days overdue. That cycle continues until all arrears are resolved.

This is why homeowners often feel like they can “never catch up” no matter how hard they try.

Understanding How You Can Be 90–120 Days Behind, Even If You’ve Recently Made Payments

Many homeowners are shocked to learn they are listed as 90 or even 120 days delinquent, despite having sent in payments within the past 30 days. This happens because mortgage servicers do not apply your payments to the month you think they’re covering.

Here’s a common real-life scenario:

• You miss March and April because of a temporary hardship.

• In May, you start paying again and make the full monthly payment.

• You miss June because of a delay in receiving your income, but then continue paying in July, August, and September.

You’ve now made three full, on-time payments, yet your statement still shows you 90 days behind.

Why? Because each new payment is applied to the oldest unpaid month, not the current month.

• Your May payment applied to March

• Your July payment applied to April

• Your August payment applied to May

That means June and July still show unpaid. And because lenders report delinquency based on the most recent unpaid payment—not the payment you just made—you can appear:

• 30 days behind after your first “catch-up” payment,

• 60 days behind after the second,

• And still 90 or 120 days behind even after several months of paying on time.

Meanwhile, late fees, escrow shortages, and corporate advances continue piling up, making the arrears even larger. If you only submit fully payments (and no late fees), you may even be further behind because the mortgage only applies payments when it satisfies the amount due for that month in full.

This is one of the most confusing and frustrating parts of falling behind on a mortgage. Homeowners feel like they are doing everything right, yet the numbers never seem to improve. Understanding this system is the first step in choosing the right strategy to actually become current.

How to Get Caught Up on Your Mortgage on Your Own (Without Help From the Lender)

Some homeowners try to catch up on their mortgage independently by making extra payments each month. This approach can work if the arrears are small and you have enough income to consistently pay more than your regular monthly payment. However, it requires planning and an understanding of how lenders apply payments.

To catch up on your own, you must pay:

• The regular monthly payment,

• Plus the full amount of any late fees,

• Plus an additional amount that reduces the oldest unpaid month (the principal arrearage).

Important details:

• Your extra payment must exceed the oldest missed payment plus fees—otherwise, it may not reduce arrears at all.

• If the lender’s system treats your extra payment as a partial payment, it may sit in a suspense account and not actually apply to the balance.

• This method works best when you are behind by one or two months, not when arrears include thousands in fees, escrow shortages, or legal costs.

Catching up on your own is possible, but it requires consistency, careful budgeting, and confirmation that the servicer is applying the extra funds correctly. If the arrears are growing faster than you can pay them down, you need a more formal agreement/option.

Option 1: Repayment Plans (Catch-Up Plans)

A repayment plan allows you to spread the arrears over several months while making your standard mortgage payment.

Example

Arrears: $12,000
Repayment term: 12 months
Additional payment required: $1,000/month
Normal payment: $2,200
Temporary payment: $3,200/month

Pros

• Quick non-bankruptcy solution

• No long-term loan changes

• May stop foreclosure if approved immediately

Cons

• Temporary payments are often very high

• Missing one payment usually cancels the plan

• Not ideal for large arrears or inconsistent income

Best for short-term hardships where income has fully recovered.

Option 2: Forbearance (Temporary Pause)

A forbearance lets you pause or reduce payments temporarily. However, all missed payments must still be repaid or managed after the relief period ends.

At the end of the forbearance, the lender typically requires:

• Full reinstatement (lump-sum)

• A repayment plan

• A loan modification

A forbearance is a delay—not a cure.

Option 3: Mortgage Loan Modification

A loan modification permanently restructures your mortgage to make it sustainable long-term.

Common modifications include:

• Adding arrears to the loan balance

• Extending the loan term (up to 40 years in some situations)

• Lowering the interest rate

• Creating a non-interest-bearing deferment/balloon payment or partial claim to be paid at loan maturity or sale

• Recalculating escrow

Timeline

Most modifications take 60–120 days. In Virginia, foreclosure can continue unless the lender voluntarily pauses the sale.

Pros

• Often lowers monthly payment

• Eliminates large arrears

• Helps long-term affordability

Cons

• Not guaranteed

• Document-heavy

• Can be repeatedly denied

• Foreclosure may continue unless paused (either because you qualify to stop or because the lender willing to stop)

Option 4: Reinstatement (Lump-Sum Catch-Up)

Reinstatement means paying all arrears, costs, and fees in one lump sum.

This is possible if you:

• Receive a bonus or tax refund

• Get family assistance

• Sell another asset

• Refinance (less likely if delinquent)

Fast option—but usually unrealistic because arrears are often thousands or tens of thousands of dollars.

Option 5: Chapter 13 Bankruptcy—The Strongest Tool to Save Your Home

If you need time to catch up, Chapter 13 gives you that time. It is the most powerful legal protection available for curing arrears.

What Chapter 13 Does

• Stops foreclosure instantly through the automatic stay

• Lets you resume regular mortgage payments

• Allows you to cure arrears over 3–5 years

• Handles other debts like credit cards, medical bills, taxes, and car loans

• Provides court oversight to prevent lender errors

• Allows you to pursue a loan modification during the case

Example

Arrears: $30,000
Plan: 60 months
Monthly arrear cure: $500 (plus trustee commission)

Pros

• Forces the lender to accept the cure

• Stops foreclosure—even the day before the sale

• Gives you years of breathing room

• Addresses other debts at the same time

Cons

• Must be able to afford both the mortgage and plan payment

• Requires consistent income

• Lasts 3–5 years

Using Chapter 13 to Buy Time for a Loan Modification

Many homeowners use Chapter 13 to stabilize the situation before applying for a modification.

Typical sequence:

1. File Chapter 13 → foreclosure stops

2. Submit a bankruptcy plan to get caught up, while also applying for a mortgage modification

3. Resume post-petition payments

4. If modification approved → plan adjusts

5. If denied → arrears are paid through the plan

This dual approach is especially useful when time is running out or you might be a good candidate for a modification, but cannot otherwise stop the foreclosure.

A Necessary Reality Check: Income Matters—and Time Is Limited

Before exploring your options, it’s important to understand a critical truth:

Every solution requires income—either now or in the near future.

• A repayment plan requires higher temporary payments.

• A loan modification requires proof you can afford the modified payment.

• Chapter 13 requires enough income to cover the regular mortgage plus the plan payment.

Lenders will not wait forever. They may offer help, but only if you show realistic ability to pay. If your income is temporarily down, you still must anticipate when it will resume.

Being realistic about your budget is essential. Ignoring the problem or hoping the lender will pause action indefinitely will only shrink your options. The earlier you speak with a professional, the more solutions will still be available. The longer you wait to stop the foreclosure process, the more difficult it is to do.

Escrow Shortages: A Reason Some Homeowners Fall Behind

In northern Virginia, property taxes and insurance increase regularly. This causes escrow shortages that raise your mortgage payment unexpectedly.

Escrow shortages can:

• Increase your monthly payment significantly

• Push you into delinquency (if you are struggling to make the payment)

• Trigger force-placed insurance

• Make reinstatement and repayment plans harder

If an escrow adjustment increases your payment, it can take a while to adjust your budget to afford the mortgage. If you get behind, you may need to consider other options to get caught up. This is also important to monitor your insurance prices and shop around for the best deals every couple of years.

Warning Signs Foreclosure Is Approaching (Virginia Moves Fast)

Virginia is a non-judicial foreclosure state, meaning the lender does not need to sue you first.

Red flags include:

• Notice of Default

• Notice of Trustee’s Sale

• Certified mail from foreclosure attorneys

• Lender refusing partial payments

• Statements saying “imminent default”

• A posted notice on your property

Once a sale date is set, Chapter 13 might be the only way to stop the foreclosure.

How Mortgage Delinquency Impacts Credit

Mortgage late payments will show as:

• 30 days late

• 60 days late

• 90 days late

• 120 days late

• Foreclosure status

The earlier you address delinquency, the less long-term damage it causes. Preventing foreclosure is critical to rebuilding credit. Additionally, even if the mortgage is in foreclosure status (or the mortgage company states the mortgage is in foreclosure), you may have options. Bankruptcy can stop foreclosures that have not yet happened and in some states (not Virginia), you may be able to undo a foreclosure within a certain amount of time.

Tips for Working With Your Mortgage Servicer

• Get a full payment history

• Ask for a breakdown of arrears

• Keep copies of all documents you submit

• Upload documents through secure portals

• Track all phone calls: date, time, representative

• Confirm whether foreclosure activity is paused

• Report errors quickly—servicer mistakes are common

Good record-keeping leads to better outcomes.

Which Option Fits Your Situation?

Consider a repayment plan if:

• You are 1–3 months behind

• Your income is fully recovered

Consider a loan modification if:

• You need long-term affordability

• Arrears are large

• You can document stable income

Consider Chapter 13 if:

• A foreclosure sale is scheduled

• You need 36–60 months to catch up

• You were denied a modification

• You have other debts affecting your budget

• You need court protection to stay in your home

Frequently Asked Questions (FAQ)

Can I save my home if a foreclosure sale is already scheduled?

Yes. Chapter 13 bankruptcy stops foreclosure immediately—even the day before the sale.

Will the lender have to accept my Chapter 13 repayment plan?

Yes. If the plan meets all legal requirements, the lender must accept it.

Can I apply for a modification while in Chapter 13?

Absolutely. Many homeowners file Chapter 13 specifically to buy time to pursue a modification safely.

What if the lender denied my modification before?

You still have options. Chapter 13 allows you to cure arrears even when the lender won’t approve a modification.

How long do I have to cure arrears in Chapter 13?

Most plans are 3–5 years. The longer the plan, the lower the monthly arrear cure amount.

What if rising escrow costs caused me to fall behind?

Escrow shortages are extremely common in northern Virginia. Modifications might help lower the payment amount to deal with any escrow increases.

What if my income is not stable yet?

You still may have options, but timing becomes critical. You must be able to afford payments soon—lenders won’t wait forever.

We Help Homeowners Across Northern Virginia Save Their Homes

At Ashley F. Morgan Law, PC, we help homeowners understand the full range of options to cure mortgage arrears and avoid foreclosure. We work with clients across Fairfax, Loudoun, Prince William, Arlington, Alexandria, Manassas, and surrounding areas.

Ashley F. Morgan Law, PC
4100 Lafayette Center Dr, Suite 106
Chantilly, VA 20151

If you’re behind on your mortgage or worried about losing your home, reach out before the situation becomes urgent. The earlier you act, the more solutions are available.