What are Mortgage Reinstatements and Loan Modifications

When you fall behind on your mortgage payments, the best way to avoid foreclosure is to pay the arrears, or the amount you owe your lender. There are two ways to bring your payments up to date so you can stay in your home.

Mortgage Reinstatement

If you have the funds needed to immediately resolve the past due balance you may apply for a mortgage reinstatement.

To begin the mortgage reinstatement process you must contact your lender, Bank of AmericaWells Fargo, etc., and ask them to provide a quote listing the exact amount you must pay to become current on your mortgage payments. The quote should include:

  • All missed payments and current payments due
  • Any late fees
  • The cost of property inspection, if applicable
  • If a foreclosure is underway, any fees related to that process that must be paid
  • If a sheriff sale is scheduled, the fee required for cancellation

The quote must be paid in full for the reinstatement to be valid.

Loan Modification

If you, like many people facing foreclosure, do not have the funds needed to pay all your arrears at once you may apply for a loan modification, which will enable you to resume making payments and take care of your past due balance over time. This option is preferable to paying thousands of dollars to bring your loan up to date only to find yourself on the brink of foreclosure again because your existing mortgage loan is unaffordable.

A loan modification or a short sale may lower your monthly payments, make your housing costs more affordable, and create the opportunity for you to stay in your home as you pay your arrears.

Contact DannLaw Regarding Mortgage Reinstatement

If you want to apply for a mortgage reinstatement or loan modification the foreclosure defense attorneys at DannLaw are here to help. We’ll use our years of experience and extensive knowledge about the foreclosure process to draft a strategy for resolving your situation. Contact us today to schedule a free consultation.

*Originally posted in www.dannlaw.com on March 27, 2018.