If you’ve missed mortgage payments, you may risk the possibility of losing your home. Mortgage reinstatement is the quickest way to get your loan back on track.
By taking action with mortgage reinstatement, you can restore your loan and resume regular payments without the looming threat of foreclosure.
Mortgage reinstatement, sometimes called loan reinstatement, is the process of restoring your mortgage after a mortgage default by paying the total amount past due. You will arrive at the point of a mortgage default after missing payments for several months.
Once your mortgage is in default, your lender has the right to move forward with a foreclosure. However, federal law requires that lenders wait 120 days before starting the foreclosure process.
Mortgage reinstatement provides an option to avoid foreclosure. Instead, you can catch up on your payments and cover any late fees to restore the mortgage by paying the total amount past due. Once you are caught up, the defaulted mortgage will receive a clean slate. At that point, you will continue to make regular monthly mortgage payments for the duration of your loan term.
If your loan is in default, your lender may send you a mortgage reinstatement letter. The document would detail the funds required to reinstate your mortgage, also known as a mortgage reinstatement quote.
In addition to the total amount due, the mortgage reinstatement letter would include a due date and will outline what happens after the payment. If the letter has expired, you should reach out to your lender to request a new reinstatement letter.
If you have any questions about your mortgage reinstatement letter, it’s a good idea to communicate with your servicer. As you move through the process, it is important to ask any questions you have. The servicer will be able to point you in the right direction. Throughout the process, it is a good idea to take notes to keep track of all the details.