In one sentence: Reinstatement means paying the past due amount plus fees in a lump sum, which cancels the foreclosure and puts your loan back exactly where it was.
Who this fits
- Your hardship was temporary and your income has recovered
- You can afford the regular payment going forward
- You can raise the past due amount, from savings, family, a bonus, or a sale of something
If you cannot afford the payment going forward, reinstating only buys time. In that case look at a loan modification or selling before the sale instead.
How to navigate it, step by step
- Call your servicer and ask for a written reinstatement quote. Use those words. Ask them to include a good-through date.
- Read the breakdown. It should show missed payments, late fees, and foreclosure costs such as attorney or trustee fees.
- Confirm your deadline. Ask how close to the sale date you can still reinstate in your state.
- Line up the money before the good-through date, because the amount grows as new fees accrue.
- Pay by certified funds the way they specify, and get written confirmation the foreclosure is cancelled.
- Watch the next statement to confirm the loan shows current.
Ask this exact question: "Can you send me a written reinstatement quote with a good-through date?" A verbal number is not enough, since the figure moves as fees are added.
What to watch out for
Do not send partial payments hoping they will count. Servicers can hold partial funds in a suspense account without stopping the foreclosure. Reinstatement generally requires the full amount. And never pay a third party an upfront fee to "negotiate" a reinstatement for you.
Common questions
How do I find out my reinstatement amount?
Call your servicer and request a written reinstatement quote with a good-through date. Do not rely on a number given over the phone.
How long do I have to reinstate?
It varies by state. Many allow it until shortly before the sale, and some set a specific cutoff a set number of days before. Confirm with your servicer and a local attorney.
Will reinstating fix my credit?
It stops the foreclosure, but the missed payments already reported stay on your credit history. Your score generally recovers over time once the loan is current again.