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Updated: What Right Do I Have to Reinstate My Mortgage to Avoid Foreclosure?

Posted on in Foreclosure

Libertyville foreclosure defense lawyersUPDATE: If you are considering reinstatement as an option for avoiding foreclosure, you will want to be sure to understand your rights, the deadlines that you will need to meet, and what other options may be available. The deadline for reinstating your loan is 90 days after you were served with a foreclosure notice. By this deadline, you will be required to make up the missed payments and pay other fees and expenses. In addition to late fees, you may need to pay other costs related to foreclosure proceedings, such as attorney's fees, recording fees, court costs, and the costs of a home inspection. You will need to request a quote from your lender for the total amount that must be paid to reinstate the loan. If you disagree with the amount provided in this quote, you can send a notice of error disputing the amount. Once you have met the requirements for reinstatement, the foreclosure case will be dismissed. It is important to note that after you have exercised your right to reinstatement, you will not be able to use this form of relief for five years after the date of the dismissal.

Another option that may be available is to pay off your loan in full. This is known as "redemption." To pay off the loan, you may be able to refinance your home through a loan from another lender, or you may receive a personal loan or gift from a person such as a family member. Typically, the deadline for redemption of your loan is seven months after the date you were served with a notice of foreclosure, although there may be some exceptions depending on your individual situation. As with reinstatement, you can request a payoff quote from your lender that will detail the full amount that will need to be paid, which will include the principal of the loan, any applicable late fees or interest, and foreclosure-related expenses.

If you have questions about reinstatement, redemption, loan modifications, or other options for foreclosure defense, contact our Waukegan foreclosure lawyers at 847-549-0000 to schedule a free consultation.


Falling behind on your mortgage payments can lead to serious trouble. If you are far enough behind that you are in default, the lender could initiate foreclosure and eventually seize your home. During the foreclosure process, however, you as the borrower have certain rights, even though you are in default on your loan. One of these rights is the right to negotiate a reinstatement of your mortgage, which will stop the foreclosure proceedings.

Initiating Foreclosure

A single missed mortgage payment is probably not going to be a serious problem. Your lender will more than likely work with you to get your missed payment caught up, even if it means paying a little extra on each of the next few payments. Likewise, two missed payments can usually be taken care of in a similar manner. Once you reach a third missed payment, however, and venture into the period of 60 to 120 days late, your lender is likely to notify you that your mortgage is in default. The lender will also send you a notice of intent to foreclose.

After you have passed the point of being 120 days late, you will probably be served with a summons and a copy of the civil complaint indicating that your lender has initiated foreclosure proceedings. In most cases, you will be served personally, but avoiding process servers or sheriff’s deputies will not stop the case from moving forward. If you cannot be served in person, your lender can file a public notice in the newspaper to serves as your formal notice. Once you have been notified, you have 30 days to respond. You also have 90 days during which you have the right to reinstate your loan.

What Is Reinstatement?

In general, reinstating your loan means catching up your past-due amount and getting back on your regular payment schedule. If you are able to get the money together to pay all of your missed payments, as well as late fees, court costs, and attorney’s fees related to the filing for foreclosure, your lender must reinstate your loan. After 90 days, the lender is not obligated to reinstate your loan, even if you pay off what you owe, but many lenders will do so anyway to avoid the costs and hassle of continuing the foreclosure process.

If you cannot afford to make a lump sum payment to reinstate your mortgage, you might still have options to avoid foreclosure. Your lender may be willing to work with you in negotiating a payment plan that will allow your loan to be reinstated as well. Once your loan is reinstated, the foreclosure case against you will be dismissed and your loan will no longer be in default.

A Lake County Foreclosure Lawyer Can Help

Facing a possible foreclosure can be frightening, but you do not need to go through the ordeal alone. Contact an experienced Libertyville foreclosure defense attorney to discuss your available options. Call 847-549-0000 for a free, no-obligation consultation today.

Sources:

http://ilga.gov/legislation/ilcs/documents/073500050K15-1602.htm

https://www.19thcircuitcourt.state.il.us/1392/Timeline-Rights

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