A repayment plan is a contract that a borrower and his or her lender create when the borrower is behind on monthly mortgage payments. During difficult economic times, it is likely that many borrowers may encounter financial difficulties, which create the inability to pay his or her monthly mortgage payments. Since the mortgage is usually a borrower's largest monthly expense, lenders try to negotiate a reasonable repayment plan with the borrower in order to avoid costly legal expenses. Repayment plans vary from borrower to borrower; some repayment plans may offer a decreased monthly payment amount for a specific number of months, and other repayment plans may defer payments for a few months. Ultimately, the borrower is responsible for the full loan amount, but repayment plans provide borrowers with creative options of repayment during a short period of time in order to keep his or her home and avoid foreclosure.