Free - Do It Yourself Solutions For Stopping Foreclosure Including Mortgage Loan Modification

Information about how to stop home foreclosure. If needed, use our form to get in touch with a mortgage modification firm to help save your home.

Full Reinstatement

People often call with the idea that the bank or the government need to bail them out of mortgage trouble because as a citizens they get the right to a loan modification and the government and the lender remain bound by law to not really foreclose on their house. In truth, the homeowner possesses very few rights in a foreclosure situation, and these imagined official rights usually count only as foreclosure myths. Banks and consumers can agree on many ways to resolve foreclosure, but as far as legal rights that a person can exercise without assent from the lender, the homeowner maintains the right to file a chapter 13 bankruptcy, and in most states the right to tender a full reinstatement.

The definition of a full reinstatement of a mortgage appears simple to understand, but doing it properly gets just a bit harder, and having the money to do it usually presents the most difficult part of this foreclosure self help solution. Accomplishing a full reinstatement basically comes down to paying the bank all of your mortgage arrears, late fees and legal charges. For those still early in the foreclosure process this may sound like a ridiculous topic for discussion, but for those faced with acceleration of their mortgage or those who tried to tender a full reinstatement only to find their check returned it clearly deserves their attention. Anyone who might fall into those categories in the future should be interested as well, so if you got this far don't start skipping sections now because you think you might never need any of this information.

Let's begin with the full mortgage reinstatement plans about as easy as one might imagine. If you need to resolve problems because of one to three months of late mortgage payments you can sometimes just call the bank, see what you owe and pay the total quoted. Be sure to follow up on this method by looking very carefully at your next mortgage statement to be sure the bank does not feel you missed any hidden late payments or other fees. Do not rely on someone on the phone being on the exact same page as the lenders computer systems or accounting department. In cases where additional charges emerge later, "They told me that was all I owed on the phone" does not absolve you from payments you really owe, nor will it stop a foreclosure already underway.

Those searching for answers about serious mortgage arrearage like a mortgage reinstatement after loan acceleration need to follow a much more detailed set of guidelines, read more in that article dealing with mortgage payments over four months late should you have questions about mortgage acceleration. If you have the money, don't panic, the bank will take your money and reinstate the loan if you follow the proper procedures. People who still need money to fund a full reinstatement plan must keep looking for funds or explore other foreclosure solutions. As the name implies, this method of stopping foreclosure calls for an all or nothing payment. No installments over time, no partial deposits.

After mortgage loan acceleration, which usually happens after you miss your fourth monthly payment, you technically owe the entire mortgage in full, principal and all. Realistically no one expects you to come up with all of that money at once, but if you try to send the bank just a payment of two they will return it to you. What frustrates homeowners even more occurs when someone four months late on their mortgage tries to pay all four months that gets sent back too.

As long as you have the money, know the rules and follow the proper procedures to the letter you have the right to execute a full reinstatement right up until the foreclosure date in theory. I say in theory because, as you will see, it may be tough to line up everything you need if you wait too long.

Step 1 Get the money.

Get together approximately the amount money you think you owe. Don't jump to step two and skip this. If you need a better idea of what the full reinstatement figure might be call the lender for an estimate. Remember full reinstatement requires every penny you owe, if you can't get all those funds together look for another way to avoid foreclosure.

Step 2 Request an official Full Reinstatement Letter.

Request an official full reinstatement from your mortgage lender. You may not get this automatically; you need to ask for it when you are ready. Don't just ask what you owe, very specifically ask for a "Full Reinstatement Letter", use those exact words. You need to make sure to get it in writing. Expect them to respond by saying they need 3 to 7 days to get the information and send it. Don't be surprised if they charge you a fee to produce the letter.

Step 3 Review the Full Reinstatement Letter.

Look at the sections you know, does the letter accurately reflect your mortgage arrearage? If you think they made a mistake do you have proof to the contrary in the form of canceled checks? Examine the figures out of your control like the bank's attorney fees. Make special note of the expiration date for the full reinstatement figure quoted. You most commonly only have a week or less from the time you receive the letter until the funds need to be at the lender. Include the time to get your checks together in the proper form and delivery time. You might understand now why you needed your funds ready before you got the official reinstatement letter.

Step 4 Negotiate Reinstatement Payment If Needed.

Consider the full reinstatement letter in your hand as cast in stone, no changes no negotiations. Should you feel a number looks wrong you certainly retain the right to dispute it. Often homeowners feel the bank's legal fee seem outrageous. Sometimes the debtor maintains a valid complaint and the bank and the lender agree to reduce those costs. A professional mortgage negotiator stands a better chance of winning this argument, but there's no law against you asking. Should you win any claims and get a reduced offer you need a new reinstatement letter in writing including a few more days to complete the transaction. Make sure you ask for this new letter; don't assume the bank will just produce one. Never rely on the old letter and the follow up telephone discussions alone.

Step 5 Send your Full Reinstatement Payment.

You may select from several methods to pay your full reinstatement, just remember to address the key points that the bank needs good funds and you need a record of the payment. So this means cash or a personal check both fail to qualify. You can send a bank check or certified check or execute a wire transfer. Follow the instructions on the full reinstatement letter. Even if your lender maintains a local branch in your town you may need to send the payment to a specific office that deals with these issues. If you mail anything send it in a way that you get a signed receipt from the bank when it arrives there. Using the US Postal service either sending a letter with a return receipt requested or using Express Mail should accomplish that.

Step 6 Confirm And Verify Your Full Reinstatement.

Make sure the bank got your payment, and then make the mortgage holder's lawyers and auctioneers aware that your bank got a full reinstatement payment (if your foreclosure is far enough they need to know).

Step 7 Make Your Next Payment On Time.

Don't think for a minute that because you just made a huge payment that you will get any extra grace period when the next payment comes up. If you miss a mortgage payment you will end up back in the same place except the lender will be even less likely to offer options because you now look like a repeat offender. Be sure you know exactly what you owe and when you owe it. Some people missed so many mortgage payments they may have had some adjustment since they last made a regular monthly payment. In some cases, especially with a full reinstatement date near the end of a month, the bank includes the next payment as a part of the full reinstatement. Just be 100% sure you know exactly what you owe for a mortgage payment and make it on time. If you accomplish all of these steps your foreclosure trouble should be over and you may move forward almost like nothing ever happened. Note however that while a full reinstatement puts everthing on an even keel with the bank, the history of your late payments remain on your credit report and you will need to work on raising your credit score.

   
If you think this process is to much for you to do alone, we can direct you to a professional loan modification firm with a proven track record, who can help you to save your home.


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