Reinstatement

Bringing a loan in default current by paying what's past due plus costs, which stops the foreclosure without paying off the whole loan.

Reinstating a loan means bringing it current: paying the missed payments plus allowed fees and costs, so the foreclosure stops and the loan carries on as before. It's different from redemption, which means paying off the whole debt.

California gives borrowers a strong right to reinstate. It runs from the notice of default until five business days before the scheduled sale. The borrower pays what's in default, not the part of the principal that wouldn't be due yet. If the sale is postponed by more than five business days, the right comes back and runs until five business days before the new date. How California foreclosure works

Texas law gives a borrower at least 20 days to catch up after the notice of default on their home, before a sale can be noticed. After that, whether the borrower can still reinstate mostly depends on the loan documents and the lender. How Texas foreclosure works

Florida foreclosures are court cases. Owners can settle with the lender while the case is pending, and they can keep the house by paying the full judgment until the certificate of sale is filed. How Florida foreclosure works

For anyone following foreclosures, reinstatement is one of the main reasons a case stops before the sale. In California you'll usually see a rescission of the notice of default recorded afterward.

All glossary terms

General information, not legal advice. For your own situation, talk to a lawyer.