At any point, and up to one business day before the foreclosure, you can Reinstate your loan.
Reinstatement means that you must pay the total amount owed, plus any attorney fees and costs that the lender incurred, as a result of your DEFAULT. To Reinstate, you must pay every penny back that is currently past due. If you tender payment and it is one cent short, the lender can reject your payment and sell your home at auction. To avoid this, you must request reinstatement figures at least 3 weeks in advance.
How to request Reinstatement figures?
Call the foreclosing law firm and your lender to ask for Reinstatement Figures. Get the fax number to the proper person at the foreclosing law firm and to the lender that will process your request and send it in writing. Save proof of your request, this could be very important in the event that the lender or foreclosing firm fails to give you a Reinstatement. In your request, ask for a Reinstatement breakdown. The breakdown should be itemized to reflect what portion is interest, late fees, attorney fees and cost, and any and all other fees that are associated with your loan. If there is a dispute with the amount owed, address the issue with the lender and foreclosing law firm again, verbally and in writing. Keep in mind, the dispute may not stop the foreclosure from proceeding. If it is a dispute over a small amount of money, be prepared to Reinstate the disputed amount anyway. If your dispute is valid, please consult with an Attorney.
Helpful Hint - If your foreclosure is on a Monday, you must reinstate on or before close of business on the proceeding Friday. Call the foreclosing law firm and ask how payment should be made. The lender or foreclosing law firm may suggest payment by:
- Certified funds
- Money order
- Wire
- Cash
Keep in mind, you are responsible if there is an issue with the wire or transfer of funds. Call in advance to find out who the funds must be made payable to and if you can present the funds in person at the law firm. If you send your funds via mail, send via an overnight courier so that it may be tracked. Waiting until the last minute to Reinstate can be particularly risky because of delays in courier service, traffic, bank processing, etc.
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