Foreclosure Definition—What is Mortgage Reinstatement Period?

There are a lot of things that we need to learn about foreclosure definition especially when you’re about to face foreclosure. Knowing the technical terms will help you find a better way to avoid it because you are better guided when you know the parlance. At this point, let us try to learn what is mortgage reinstatement period.

Homeowners who are in default in their mortgage should be looking for ways to save their homes and when they do, the first thing that they should be asking about is mortgage reinstatement.

Things You Need to Know about Mortgage Reinstatement Period

Foreclosure Definition

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As per foreclosure definition, the process of mortgage reinstatement can begin when your lender files the case to the court to start with the foreclosure proceedings on your property. This period ends when the proceeding is over. During the mortgage reinstatement period, you can effectively stop the foreclosure if you will make your mortgage current and pay all fees that you have incurred including all late charges and legal fees.

This means that during the foreclosure proceeding, you have the opportunity to get back on track. Make use of this opportunity because this is your final opportunity. This should not be confused with the so called redemption period because this happens after you have been foreclosed.

The Entire Process of Mortgage Reinstatement Period

Again as per foreclosure definition, mortgage reinstatement is mandatory by law. This means that as long as you have the money, the lender is under the obligation to accept it and reinstate the loan. The entire legal process can go for as long as a year or even more and during this period, the fees and interest can pile up. It is therefore wise to pay the fees and interest rates during this period to prevent them from piling up.

If you can’t obtain the fund needed to reinstate the loan, try to consider the help of federal programs. You can avail of the HUD Emergency Homeowners Loan Program which is an interest-free loan of up to $50,000. That amount can already go a long way to cover for delinquent balance. There are also churches and charitable institutions that lend money to prevent foreclosure. The best thing that you can do is to communicate with your lender and work out a plan.

So there you have it, knowing a few things about foreclosure definition helps a lot in preventing actual foreclosure. As a homeowner, it pays to know certain things about foreclosure.

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