What is a Mortgage Reinstatement Period?

Homeowners who have gotten behind on their payments and are looking for a way to save their house often have questions regarding a mortgage reinstatement period.

What is a Mortgage Reinstatement Period?

The mortgage reinstatement period begins when the lender files legal documents with the court to start foreclosure proceedings on the home. The period basically ends when the legal proceedings are over. During the period, however, you can stop all foreclosure proceedings from moving forward by making your loan current, and paying all fees that you have incurred including legal and filing fees and any late charges involved.

The Entire Process

Once the legal procedures have begun, the mortgage reinstatement is mandatory by law in that the lender must accept the payments and reinstate the loan. The entire legal process for foreclosure can be drawn out for as long as a year or more, and the fees will pile up on a daily basis as interest accrues. As a result, if you are planning on a mortgage reinstatement, it's best to pay any fees as soon as possible to keep the fees from piling up.