Mortgage Servicing and Loan Modifications: 6.4.9 Saving Up a Lump Sum
Borrowers should be encouraged to save anything possible toward the mortgage while a workout is being discussed. (If possible, those funds should be placed in escrow.) Even if the mortgage holder has refused partial payments, after several months the accumulated lump sum may be useful in workout discussions. In some instances, a growing arrearage balance may at some point make a loan modification unfeasible.