Facing Foreclosure? Mortgage Reinstatement Could Help
Florida homeowners who have fallen behind on their regular mortgage payments have legal options available to them for avoiding foreclosure.
The quickest way for you to recover legally and financially when you’ve missed too many mortgage payments is to obtain a mortgage reinstatement from your lender and end the possibility of losing your home.
The mortgage reinstatement attorneys at Loan Lawyers in Fort Lauderdale, FL, can explore ways to get your mortgage current again and avoid your mortgage lender filing a foreclosure lawsuit against you. In Florida, the foreclosure process typically takes 180-200 days, so there’s no time to waste if your lender or a collection agency has already contacted you about your monthly mortgage payments.
Contact Loan Lawyers today for clear answers to your top questions about stopping foreclosure threats and getting your home loan current with a mortgage reinstatement. Our attorneys employ a unique and multifaceted approach to debt solutions, which has helped over 10,000 clients in South Florida eliminate debt and regain financial stability. Call us today for a free initial consultation.
What Is Mortgage Reinstatement?
Mortgage reinstatement is a legal process that enables a homeowner who has fallen behind on their mortgage payments to make a single payment covering the full amount of past-due payments. This brings the account up to date and prevents foreclosure.
With this payment, the mortgage is reinstated, and the borrower resumes making regular monthly payments on the loan.
What You Must Pay to Reinstate Your Loan
A reinstatement requires that the borrower pay all:
- Missed mortgage payments
- Accrued interest
- Late fees
- Other associated costs.
If foreclosure has already begun, your lender or loan servicer may require payment of fees associated with the foreclosure process, including filing fees, recording fees, and property inspection fees.
How Mortgage Reinstatement Works in Florida
Florida law does not guarantee the right to reinstate a mortgage, unlike many other states. But if you are in default, your lender may be willing to accept payment and reinstate your mortgage, or the terms of your mortgage or deed of trust may explicitly state the right to reinstate a mortgage that has gone into default.
When required, a lender in Florida will send a mortgage reinstatement letter to a borrower who has defaulted on their mortgage. It will state the payment that must be made to reinstate the loan, along with a due date.
If you have defaulted on your mortgage loan and are interested in reinstatement but have not received a reinstatement letter, you can request reinstatement from your lender.
To obtain a mortgage reinstatement, the borrower must be able and ready to make the full payment necessary to make the loan current. Then, the reinstatement agreement is a contract between the lender and the borrower, which includes the original mortgage’s terms and conditions and states that the original contract is reinstated.
Many homeowners seek mortgage reinstatements once foreclosure on their home loan has begun.
Florida’s Judicial Foreclosure Process
Foreclosure in Florida begins with the mortgage lender filing a lawsuit, or complaint, against the borrower and having the complaint and a summons served on the borrower. The summons requires the borrower to respond within 20 days. Otherwise, a default judgment will be entered against the borrower, allowing for the foreclosure sale to proceed.
A foreclosure case may go to trial if the borrower has a foreclosure defense, i.e., legal reasons the foreclosure should not proceed. Alternatively, if a homeowner files for bankruptcy, an automatic stay stops an ongoing foreclosure lawsuit and protects the petitioner’s possession of their home.
A borrower may negotiate and execute a mortgage reinstatement at any time before a judge’s ruling on the foreclosure has been entered.
It’s possible to reinstate a loan after a foreclosure judgment, but it’s rare. If a lender decides reinstating the loan is in their best interest, they can ask the court to cancel the final judgment and enter an agreement with the borrower.
Reinstatement vs. Loan Modification vs. Refinancing
It’s easy to become confused by the various options available to you if you’ve fallen behind on your mortgage. Here are the key differences between reinstatement, loan modification, and refinancing.
- Reinstatement of a mortgage does not alter the payment schedule or other loan requirements. It reinstates a mortgage contract that has gone into default. The document specifically restates the terms and conditions of the original mortgage.
- A loan modification changes the terms of an existing mortgage, typically by extending the loan term (duration), reducing the interest rate, or forgiving part of the principal. A homeowner who is in imminent danger of default or who can demonstrate specific hardship — serious illness, death of the family’s breadwinner, etc. – may be able to negotiate a loan modification.
- Refinancing a mortgage means you have taken out a new loan to pay what’s owed on your home. Typically, homeowners refinance the balance of an existing mortgage to lower payments when interest rates have dropped significantly. A homeowner who has built equity in their home might refinance their existing mortgage with a loan for more than they owe on the home, and take the difference for themselves to use for another purpose.
Legal Help for Mortgage Reinstatement in Florida
If you have fallen behind on your mortgage payments, the good news is that your lender or loan servicer would rather be paid than foreclose on your home.
If you have received a reinstatement letter or believe you need to seek mortgage reinstatement in Florida, our attorneys can assist you. We can review your loan documents and/or deed of trust and help you run the numbers to determine the best path forward for you. If reinstatement of your mortgage is not feasible, we can explore other measures to help you keep your home.
At Loan Lawyers, we take a big-picture view of our clients’ financial situations. We can examine your entire debt situation and explain how you can take advantage of the many state and federal regulations available to protect consumers like you.
Our legal team provides sensible, affordable, and proven debt relief and foreclosure defense solutions for Florida homeowners. Even if foreclosure proceedings have begun, you still have rights and legal options that may help you negotiate more favorable terms with your lender and stay in your home.
Get Help Reinstating Your Mortgage Today
Have you fallen behind on your mortgage payments but are interested in negotiating a repayment plan with your mortgage lender to avoid foreclosure of your home? Our foreclosure defense attorneys in Fort Lauderdale, FL, are here to help you.
We provide total debt solutions because people shouldn’t have their lives ruined by debt or foreclosure. Contact us today for a free consultation about protections available to you, including aggressive Fort Lauderdale foreclosure defense if legal action has begun.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
