- Free Consultation: (202) 448-5136 Tap Here To Call Us
What Is Mortgage Reinstatement?
Mortgage reinstatement is your first and best loss mitigation option when facing foreclosure. Mortgage reinstatement means catching up your missed mortgage payments, along with all associated late fees and charges. To reinstate, you must pay the full amount due and owing in a single lump sum.
Mortgage companies rarely accept reinstatement amounts less than the amount due in full. Your mortgage company may offer other loss mitigation options, including modification and workout, in addition to reinstatement.
How to reinstate your loan
Do not assume that the amount required to reinstate your loan equals your monthly mortgage payment times the number of months defaulted. Mortgage companies invariably charge late fees and costs, and sometimes even interest.
Instead, request a written reinstatement quote. Your mortgage company will send you a letter stating the exact amount due to reinstate your loan. Be sure to request the reinstatement amount good through a date certain, often the end of the month. Do this to avoid confusion and ensure that your mortgage will be reinstated in full upon receipt of your payment.
What happens after mortgage reinstatement?
If you reinstate your mortgage, you have restored it to nondefault status. At that point, you can resume your normal monthly payment amount and schedule. You should work closely with your lender to ensure that your reinstatement amount is correct and that is has been received on time. Once your loan has been reinstated, your mortgage company no longer has legal standing to foreclosure. Coming current on your mortgage remains the very best option for avoiding foreclosure.
Mortgage reinstatement in preforeclosure
While you are in preforeclosure is when you have your best opportunity for mortgage reinstatement. Once foreclosure is initiated, your mortgage lender can add thousands of dollars in legal costs to your reinstatement total. If your mortgage company gives you the run-around, be persistent. If you have the ability to reinstate your mortgage, do so as quickly as possible to avoid additional late fees, charges, and legal costs.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
