If you`re a homeowner with a mortgage backed by the Federal Housing Administration (FHA) and you`re struggling to make your payments, you might be eligible for a repayment plan known as a Pre-Foreclosure Sale (PFS) or a Deed-in-Lieu (DIL) of foreclosure through the FHA`s Private Mortgage Insurance (PMI) program.

To participate in the PFS or DIL, you`ll need to sign what`s called a Preliminary Loss Mitigation (PLM) agreement, which outlines the terms of the repayment plan and your responsibilities as a borrower. The agreement is also known as a „PIH Notice“ repayment agreement, referring to the Department of Housing and Urban Development (HUD) handbook that governs the FHA`s PMI program.

Under the PIH Notice repayment agreement, you`ll have to make payments to the servicing lender over a period of time to bring your account current. If you`re unable to catch up on your payments, you may be required to sell your home through a short sale or transfer the deed to your lender as part of a DIL.

It`s important to note that participation in a repayment plan or loan modification does not guarantee that you will avoid foreclosure. The lender may still decide to foreclose if you do not meet the obligations of the repayment agreement, or if you fall behind on your payments again in the future.

If you`re struggling to make your mortgage payments, it`s important to seek assistance as soon as possible. Contact your loan servicer to discuss your options, including a PIH Notice repayment agreement, and to see if you qualify for any other forms of assistance. By taking action early, you may be able to avoid the stress and financial consequences of foreclosure.