For many homeowners facing foreclosure or behind in payments, selling their home is not an option.    The Notice of Default and filing of foreclosure by the lender often serves as a wake up call for homeowners.  In my work of Foreclosure Assistance, more often then not, homeowners want to stop the foreclosure, catch up on payments and get back on track with making the monthly mortgage payments to the bank.

The process by which payments, late fees, attorney fees, etc. are paid and the note & mortgage are brought current is referred to as Reinstatement.

There are basically 3 ways to reinstate your mortgage:

•1.                  Pay in full the past due payments, late charges, inspection fees, attorneys' costs and any other fees imposed by your lender and resume making payments per your mortgage, typically on the first day of each month.

•2.                  If a homeowner does not have the cash to bring the loan current, the lender will usually offer a Forbearance Agreement, also known as a repayment plan.   The homeowner provides financial information to the lender who determines how the arrearages will be repaid.  

•3.                  If the homeowner cannot pay in full and depending on specific loan criteria, the lender may offer a Loan Modification.   A loan modification allows a portion of the past due debt to be added to the back of the loan and the homeowner is permitted to resume monthly mortgage payments per the agreement.

When a homeowner or borrower is fortunate enough to have the funds to simply pay the past due amount in full, there is no need for third party intervention.  The mortgage company will cheerfully provide details regarding sending money to them.

On the other hand, if full payment is not an option, then the homeowner must request either a forbearance agreement or loan modification in order to reinstate the loan.   

It is at this point a homeowner must decide to attempt negotiations with their lender or to consult a professional [licensed] Foreclosure Specialist.