Can You Stop Foreclosure by Paying the Past Due Amount?
Yes, there are several ways to stop a foreclosure including by paying off the past due amount. Let’s walk through this process in more detail. In addition, be sure to read more about other steps you can take to avoid a foreclosure in Florida.
What it means to reinstate the mortgage
The foreclosure process is overwhelming and daunting, and if you find yourself in the difficult position of facing one, it can be hard to even know where to begin. One very important thing to know is that you have options – no matter what stage of the process you are in, you always have options. Though the sooner you act, the more you have.
One option for stopping a foreclosure is by reinstating the mortgage. A mortgage reinstatement is when a borrow catches back up with the loan by paying off the past-due loan amounts, including penalties and fees, in one lump sum. Once the mortgage has been reinstated, you, as a borrower, go back to making your regular monthly payments on the loan.
How much does it cost to reinstate the mortgage?
To reinstate the mortgage, you must pay back the entire reinstatement amount. To find out what you owe, contact your lender in writing (be sure to keep copies for your records) and ask what you owe. You may need to dispute the amount so keeping good records of everything is essential. In general, the reinstatement amount will include:
- The total amount owed for all overdue payments including principal and interest.
- All late fees
- Any foreclosure costs
- Any additional expenses your lender or mortgage servicer paid, such as homeowners’ insurance.
Your deadline to reinstate your mortgage will be set forth in the terms of your mortgage or deed of trust. Regardless of the cutoff time, it’s best to act as soon as you can in case issues arise during the payment process that end up causing a delay or error.
If you’re a Florida homeowner facing foreclosure, our experienced foreclosure defense team at Jacobs Legal is ready fight for what’s yours. We don’t back down until our clients’ rights have been fully defended. Get in touch to schedule a confidential consultation.