5.04 REPAYMENT PLAN (38 C.F.R. 36.4301) (02/01/18)

© VA Servicers Handbook - M26-4

a. A repayment plan is a written executed agreement, by, and between the borrower, and the servicer to reinstate a loan that is a reportable default (61, or more calendar days delinquent) by requiring the borrower to pay the normal monthly payment, plus a portion of the delinquency each month. To be eligible for an incentive, the repayment plan must be established for at least a 3-month period.

b. During the repayment agreement, servicers must monitor the agreement each month, and take appropriate action if the borrower does not comply. Plans may be renegotiated at any time.