8 Ways to Avoid Foreclosure: Reinstatement

One of the 8 ways to avoid foreclosure is REINSTATEMENT.

To reinstate, call the foreclosing bank and ask for the reinstatement amount and wiring directions. The bank can take up to ten days to mail the reinstatement amount. The “good through” date is how long the reinstatement amount is good. If you go beyond that date, you need to request a new reinstatement amount.

Go to your bank, any one you have a checking account with, and use the wiring instructions to wire the exact amount to the foreclosing bank. Wiring fees are typically $25-50 per wire. If you wire less than the amount required, the bank does not have to accept it.

Reinstating a loan works well for those who are expecting a windfall of cash from a bonus, insurance settlement, commission, or the sale of a high ticket item. Because the reinstatement amount is at least 4 months of mortgage payments plus late fees and trustee fees, it is difficult for most people who has encountered a temporary hardship to do. Some homeowners are able to work extra hours, get a loan from friends and family, or sell something that costs as much as the reinstatement amount.

Facing foreclosure and need more options? Call our office today at (480) 304-5614 to get more information.