Would a Home Reinstatement Work for You?

Financial windfalls are a beautiful thing, but the next thing to consider is where you will allocate those new funds. If you are incredibly delinquent on your mortgage, you can use the money to pursue a home reinstatement. If you execute this flawlessly, you can become current on those mortgage payments by transferring the full amount that you are behind.

Home reinstatement is an excellent option for people who are coming away strong from financial hardship. If you determine that you are ready to make the lump sum payment, the home reinstatement can get fulfilled by a specific date. This full repayment includes satisfying not only the regular mortgage payments, but also delinquent interest, insurance, taxes, and other expenditures from the lender.

Reinstatement’s Effect on Foreclosure

A mortgage reinstatement is very useful in blocking a foreclosure because the homeowner can play catchup on the payments in default. This process also includes any other expenses because of the default. Once the loan reinstatement is complete, the borrower can resume making his or her regular debt payments now and into the future.

What is Included in a Reinstatement Quote or Letter?

You cannot begin the home reinstatement process until you gather a proper quote. You need to investigate the exact amount required to reinstate. This figure lets you know what it will take to cure the default finally. You can do this by contacting a mortgage servicer, which is the company that takes care of your loan account.

The reinstatement quote usually includes the following components:

  • A summary of the current and backend payments that are due right now
  • Any pertinent late fees
  • Cost of property inspections that took place for your home
  • Foreclosure procedure fees related to any attorneys or trustees
  • Expenses related to the sale cancellation or recording fee
  • Expenditures incurred to protect the interest of the lender in the property

What Does the Timeline Look Like for Reinstating a Home?

Various states might have laws that enable a borrower to reinstate the mortgage by a specific deadline, such as 5:00 p.m. on the final business day before the date of sale. It is not in your best interest to delay until the last minute to reinstate. If you are unable to complete the home reinstatement promptly, the foreclosure will begin, which is the worst possible scenario for you.

The best thing is to become educated on the wording of the mortgage or deed of trust. It will usually have a written language that states the amount of time that the homeowner can satisfy the loan. Peruse through the loan documents and watch out for a section that might be labeled as something like “Borrower’s Right to Reinstate.”

What is the Difference Between a Reinstatement and a Payoff?

As mentioned previously, a homeowner can complete a home reinstatement by satisfying any payments that are in default, including the costs. When it comes to a payoff, this will involve both covering the remaining balance but also any costs associated with a reinstatement. Just like a reinstatement, you should ensure that you complete a payoff on time.

What if I Dispute the Statement Amount in a Reinstatement?

You, as the borrower, still have the right to challenge a reinstatement amount if you believe that it is incorrect. To effectively dispute the home reinstatement amount, you must deliver an error notice to the mortgage servicer.

This notice should include your full name and any relevant information that the servicer will need to match up your loan account. You should also be very descriptive of the error when you write it out. That way, the mortgage servicer has enough information to respond to the error.

The company must correct any errors related to the balance within seven days, or else it will be subject to federal law. If it is any other kind of error, then the servicer must amend the issue within 30 days. It is essential for you not to assume that there is an error, however, because the foreclosure process will not halt for this event.


As you can see, a home reinstatement can work for you with an outlined plan. There are systems in place that allow you to go through the process smoothly and confidently. There is no better feeling than getting back on track with your mortgage payments, which will enable you to dedicate your energy to other areas of life, like family, career, and other methods of self-investment.

The critical thing to remember is not to slack off once you complete the home reinstatement. There are still more monthly payments that you will need to make in the future. You must dedicate your efforts to creating consistent income so that you can avoid being delinquent and approach financial freedom with ease.