Right of Reinstatement
The majority of mortgages in the state of Florida give you or your defense attorney the right of “reinstatement.” This means that at any time during the foreclosure process if the borrower comes up with the money for the late payments or can make a deal with the bank, then they should be able to reinstate their mortgage.
Reinstating a loan stops a foreclosure because the borrower is allowed to catch up on payments in default, but it is important to note that there are potentially other costs involved with reinstatement such as past-due fees and penalties incurred as a result of the default. Once the mortgage has been reinstated, the borrower must resume making regular payments on the loan.
To reinstate a loan, you must first determine the amount needed to reinstate. You do this by requesting a reinstatement quote or reinstatement letter from your lender. The reinstatement quote will show the exact amount needed to cure the default as well as a good-through date for the amount.
Typically included in the quote will be all of the back payments now due, any applicable late fees, the cost of any property inspections, the attorney/trustee fees and costs for the foreclosure procedure, and other expenses incurred to preserve and protect the lender’s interest in the property. There could also be a recording fee for the notice of cancellation of the sale.
It is highly recommended that you do not wait until the last minute to reinstate your loan. Although the deadline may be 5:00 p.m. on the last business day before the sale date, if the funds are not delivered on time, the foreclosure sale will still move forward. If possible, present the funds in person to the proper contact found in the reinstatement quote well before the deadline. Or, if you mail in your reinstatement funds, make sure to send your payment overnight using a method that is able to be tracked.
Our firm takes foreclosure defense cases very seriously. Whether you are looking to reinstate your mortgage or explore other options to avoid foreclosure, the experienced and knowledgeable attorneys at Korte & Wortman, P.A. can assess your situation and assist you in making the right decision.
Korte & Wortman, P.A. is a law firm specializing in defending those injured through foreclosure. Based in West Palm Beach, our firm represents clients throughout the state of Florida and across the eastern seaboard. With expertise in all aspects of real estate law, the attorneys at Korte & Wortman also represent clients in real estate closings, property tax appeals, condominium and HOA disputes and landlord-tenant disputes. To learn more, visit www.foreclosurefactor.com, or call 561-228-6200.