Quick overview

Reinstatement rights give a borrower a way to stop foreclosure by paying the total amount the lender requires to bring the loan current. The scope and deadline vary by state and by whether the lender is pursuing a judicial or nonjudicial foreclosure. In my 15+ years working with homeowners, acting early and getting a written reinstatement payoff figure from the servicer is the most common factor that determines success.

How reinstatement works — step by step

  • Confirm the foreclosure stage. Reinstatement is generally available after a default and often before a foreclosure sale or final judgment. Timing depends on whether the state uses judicial or nonjudicial foreclosure procedures (see below).
  • Get written notices. Lenders must provide notices (e.g., Notice of Default). Read them carefully and keep copies. Federal and state rules require certain disclosures; the CFPB has plain-language guidance on foreclosure notices (Consumer Financial Protection Bureau).
  • Request a reinstatement payoff. Ask the loan servicer in writing for the exact amount and deadline to reinstate the loan. That figure should include missed principal and interest, allowable late fees, escrow shortages, and reasonable costs and attorney fees if permitted by law or your contract.
  • Make the payment properly. Follow the servicer’s payment instructions and get written confirmation that the loan was reinstated. Use traceable methods (wire, cashier’s check) and document the transaction.

Judicial vs. nonjudicial foreclosures — why it matters

States differ. In judicial-foreclosure states, the lender must sue and get a court judgment; reinstatement may be possible up until a court’s final judgment or as the statute allows. In nonjudicial (power-of-sale) states, reinstatement rights often end at or shortly before the trustee’s sale unless state law or the mortgage gives a later period. For a deeper comparison, see our article on Loan Default Remedies: Judicial vs Nonjudicial Foreclosure Differences.

What the payment usually covers

A reinstatement payoff commonly includes:

  • Missed principal and interest
  • Accrued interest to the reinstatement date
  • Permitted late fees and contractual fees
  • Escrow shortages (taxes, insurance) if required by the mortgage
  • Reasonable costs and attorney fees where allowed by law

Note: Some lenders may also demand costs related to initiating foreclosure. State law and your mortgage control what may be charged.

Practical tips I use with clients

  • Don’t assume time: ask for a written reinstatement payoff and deadline the moment you receive a default notice.
  • Keep all communications in writing. Follow up phone calls with an email or letter summarizing what was said.
  • Verify the servicer’s identity and the correct payee before wiring funds.
  • If you can’t pay the full reinstatement amount, ask about alternatives early: forbearance, loan modification, repayment plans, or a deed-in-lieu. Sometimes the servicer will negotiate fees or accept a cure plan.
  • Use a HUD-approved housing counselor or a local foreclosure attorney if you have doubts (HUD and CFPB maintain directories of counselors and resources).

Common mistakes and misconceptions

  • Ignoring notices or missing deadlines — reinstatement rights are time-limited.
  • Assuming all fees are enforceable — some fees may not be allowed under state law or your loan documents.
  • Failing to get written confirmation — verbal promises are hard to enforce; always get a written reinstatement receipt.

When reinstatement isn’t an option

If your loan has been accelerated and the sale already occurred, reinstatement may no longer be available. In some states a post-sale redemption period exists (a different legal remedy), but that is separate from reinstatement. Learn more about the overall foreclosure process.

Resources and next steps

Professional disclaimer: This article is educational and does not replace personalized legal or financial advice. For guidance tailored to your situation, consult a housing counselor, mortgage servicer, or an attorney licensed in your state.