Correcting a defaulted loan

[katieinny]

According to the EPCRS, the correction for a defaulted loan that is still within the repayment period can be a lump sum payment, or reamortization of the balance over the time remaining in the repayment period, or a combination of the two.

I'm wondering if it's possible to start making the regular payments now, and then making the missing payments at the end as a lump sum or balloon payment?

[Belgarath]

Doubtful. However, since the correction for the defaulted loan under 6.07(3) is only available through VCP, you can request it as part of your VCP filing if you want to. I very much doubt that the the IRS will allow this, however, as it violates the whole principle of the otherwise allowable correction.