• Some troubled homeowners can benefit from a mortgage deferment plan.house money image by Alexandr Shebanov from Fotolia.com
  
  Mortgage deferment plans are common with borrowers who need reprieve from their housing obligations during periods of financial hardship. In certain cases, lenders find it more cost effective to offer deferment payment options than to spend money and time foreclosing. Deferments can involve deferred or waived interest, or simple payment arrangements to bring troubled accounts current.
  
  

Traditional Deferment

• Traditional deferment options usually involve a lender allowing a borrower to skip mortgage payments for a specific period. Some options involve unpaid interest during the deferment to be added to the principal. Lenders will sometimes waive the interest and require borrowers to resume making regular payments when the deferment ends.
  
  

Modified Deferment Plans

• Some deferment options are often combined with other types of mortgage restructure or repayment options. For example, a lender may defer a portion of a borrower's payment in exchange for a reduced monthly amount until the borrower's financial situation improves.
  
  

Reinstatement Option

• Some deferment agreements come with a basic reinstatement agreement. A reinstatement plan commonly involves a borrower's promise to bring past due or unpaid interest current in order for a standard deferment to be arranged.