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💰 Option 1 of 5

Reinstatement
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Pay all back-arrears in one lump sum to bring your loan completely current and stop the foreclosure immediately.

Exactly What to Do — Step by Step

1

Call Your Lender's Loss Mitigation Department

Do NOT call the regular customer service line. Ask specifically for the Loss Mitigation or Foreclosure Prevention department. This team has the authority to pause proceedings and work with you directly.

💡 Script: "I'm calling about my loan #[number]. I'd like to request a reinstatement quote. Can you transfer me to loss mitigation?"
2

Request a Written Reinstatement Quote

Ask them to email or mail you an official reinstatement payoff letter. This document shows the exact amount needed to bring your loan current — including all back payments, late fees, attorney fees, and costs.

⚠️ Reinstatement quotes typically expire in 30 days and change daily as interest and fees accrue. Get the quote in writing and act quickly.
3

Gather the Funds

Common sources: personal savings, 401(k) hardship withdrawal or loan, family loan, hard money lender, home equity line (if available), or a private investor partnership. You need the exact amount from the quote — not a partial payment.

4

Pay by Cashier's Check or Wire Transfer

Personal checks are often rejected. Get a cashier's check from your bank or wire the funds directly to your lender using the routing info in your reinstatement letter. Send it well before the deadline.

💡 Send via overnight mail with tracking, or wire if there's less than 7 days before sale date.
5

Get Written Confirmation

Once payment clears, call your lender to confirm the reinstatement was applied and any scheduled sale has been cancelled. Request written confirmation — keep this document forever.

6

Stay Current Going Forward

Set up auto-pay or calendar reminders. If you fall behind again, the process becomes harder and more expensive each time. Consider a budget review to prevent it from happening again.

⚠️ Important Warnings

• The reinstatement amount changes daily — fees and interest keep accruing until paid in full.
• If your state has a short redemption period, time is critical. Ask the lender exactly how many days you have.
• Some lenders stop accepting reinstatement 5–10 business days before the sale date. Don't wait.

Can't Come Up With the Full Amount?

If reinstatement isn't possible, there are 4 other options — including one where we bring your loan current for you.

See All 5 Options → Learn About Subject To →