Making your loan current could avoid you foreclosure if you have the funds to repay the missed payments on your mortgage and any associated fees and late charges (typically a lump sum payment on a specific date).
A reinstatement may make sense if you:
- Are recovering from a short-term financial hardship.
- Are behind on your mortgage and have received a notice of default.
- Can demonstrate to your lender that you can repay your debts and afford your monthly mortgage payment.
Be aware that there may be late fees and other costs associated with a reinstatement plan.
Reinstatement is often combined with forbearance when you can show that funds from a bonus, tax refund, new employment or other source will become available at a specific time in the future.