Foreclosure Reinstatement: What It Costs, Your Deadline, and How to Do It Right

If you have found a way to raise the money, you may be close to keeping your home. The key now is getting the exact number in writing and paying it the right way, on time.

What is foreclosure reinstatement?

Reinstatement is paying the full past-due amount and allowed costs so your loan goes back to normal, as if you had never fallen behind. You keep the same loan, rate, and monthly payment.

Yes, reinstatement stops foreclosure when it is done in time: the servicer must end the foreclosure once the loan is reinstated under the loan terms or state law. It is different from a payoff, which pays the whole loan balance, and from a loan modification, which changes the loan terms.

Quick facts

• The standard Fannie Mae/Freddie Mac deed of trust (Section 19 in the long-used version) lets you reinstate until the earliest of 5 days before the sale, another period set by state law, or a court judgment.
• California: you can reinstate until 5 business days before the sale date (Civ. Code §2924c(e)).
• Texas: the servicer must give at least 20 days to cure after a notice of default (Tex. Prop. Code §51.002(d)), and many deeds of trust allow more time.
• Pennsylvania: you can cure up to one hour before bidding at the sheriff sale, up to three times a year (41 P.S. §404).
• A payoff statement must generally come within 7 business days of a written request, but that deadline can stretch while a loan is in foreclosure (12 C.F.R. §1026.36(c)(3)).

What is included in a reinstatement quote?

A reinstatement quote lists every dollar you must pay to bring the loan current by a certain date. The standard uniform deed of trust says you must pay all sums that would be due if the loan had not been accelerated, plus expenses of enforcing the mortgage.

How much does it cost to reinstate a mortgage?

The cost is your missed payments plus late charges and foreclosure costs, so it grows each month and each step of the case. There is no typical national number because every loan and state is different.

As a rough way to think about it, most of the total is usually the missed payments. The fees tend to rise the further the foreclosure goes, which is why acting early costs less. Quotes are good only through a stated "good through" date. If you pay after that, another payment may be due. For help lowering or spreading out the cost, see help with mortgage payments.

Can a servicer refuse reinstatement or partial payments?

A servicer can usually refuse a partial payment, but it generally cannot refuse a full, on-time reinstatement that your loan or state law allows. The uniform deed of trust says the lender may return payments that are not enough to bring the loan current.

If the servicer keeps a partial payment, federal rules require it to show the amount in a suspense account on your statement and apply it once it adds up to a full payment (12 C.F.R. §1026.36(c)(1)(ii)). Check your own mortgage for the reinstatement section; some loans, like certain older or private loans, may differ. If you believe a servicer is wrongly refusing a valid reinstatement, talk to a foreclosure attorney immediately and file a complaint with the CFPB.

How do I request a reinstatement quote?

Ask for it in writing, by name, and ask for a figure good through a date after you expect to pay. Call first to learn the fastest way to request it, then send a written request by the method the servicer designates.

Federal payoff rules give servicers up to 7 business days for a written payoff request, but that limit relaxes during foreclosure, and a general information request can take up to 30 business days (12 C.F.R. §1024.36). So do not wait. If your sale is close, also contact the foreclosure attorney or trustee, who often produces the figure. Our guide on stopping a foreclosure auction covers what to do if time is short.

How do I pay a reinstatement and confirm the sale is cancelled?

Pay exactly the way the quote says, usually by wire or certified funds, and get written confirmation that the sale is cancelled. The uniform deed of trust lets the lender require cash, money order, certified or cashier's check, or electronic funds transfer.

• Confirm the wire instructions by calling a number you already trust. Wire fraud is common.
• Pay before the deadline in your quote and your state's law, not on the last day.
• Get a letter or email stating the loan is reinstated and the sale is cancelled.
• Check your county records or court docket afterward to be sure no sale was held.

If this is your situation

You have the full amount

Request the quote in writing today and plan to pay several days before the deadline.

You have part of the money

Ask about a repayment plan, modification, or forbearance instead. Submit a complete loss mitigation application as early as you can.

You have no income and cannot reinstate

Look at a short sale, deed in lieu, or selling the home. Selling before the sale, including to a direct cash buyer, may protect your equity. See selling to avoid foreclosure.

The sale is less than 2 weeks away

Call the trustee or attorney today for the figure and deadline, and speak with a foreclosure attorney.

What to do this week

1. Find the reinstatement section in your mortgage or deed of trust and note the deadline.
2. Request a written reinstatement quote from the servicer and, if a sale is set, the foreclosure attorney or trustee.
3. Check every line of the quote against your records and ask about any fee you do not understand.
4. Line up certified funds or a wire and verify instructions by phone.
5. Pay early and get written confirmation that the sale is cancelled.
6. If you cannot raise the full amount, call a HUD-approved housing counselor at 1-800-569-4287.