Pre-Foreclosure Strategies - Reinstatement
Reinstatement occurs when the amounts that are in arrears, including all late fees, advertising cost and attorney’s fees are paid in full. This option is one that will continue to be available to you as a homeowner right up to the time of the foreclosure. It does require that the lender provide these numbers to the foreclosing attorney in order to reinstate. In order to facilitate this we will usually get an authorization signed by you that permits us as your Broker to request these numbers, or you may request these yourself.
This is a link to one of our recent Pre-Foreclosure Transactions that resulted in reinstatement and subsequently a closed sale.
This option can also be very useful if a buyer for your home has been located, but due to time constraints a loan cannot be fully underwritten, approved and closed. In this case it would allow a perspective buyer or third party to fund the reinstatement and receive an interest in the property until the buyer’s loan could be closed. This satisfies your lender, will usually satisfy the buyer, and will provide the necessary time to close the transaction after the reinstatement.
Although it is not suggested, we have actually facilitated reinstatements on the day that the property is scheduled to be foreclosed on. Not ideal, but sometimes necessary.
I have included a link that will allow you to Tell Me About Your Home. Just fill it out and forward and I will promptly respond.