When facing a foreclosure in Orlando, one option the borrower can pursue is what’s called a “Reinstatement”. Reinstatement occurs when the borrower brings the delinquent loan current in one payment. The lender reinstates the terms of the original mortgage agreement and lets the borrower stay in the house as long as they resume making regular payments on the loan. Reinstating a loan stops a foreclosure because the borrower is allowed to catch up on payments in default, as well as past-due fees, costs, and penalties incurred as a result of the mortgage default.
Reinstatement of your mortgage, although rare, is typically agreed upon prior to a judgment being rendered. This is because almost every party involved in the Florida mortgage foreclosure proceedings wants this to occur. The Judge wants to encourage settlement, the lender gets their payments caught up and is reimbursed for all of their foreclosure costs, and the borrower gets to keep their home (assuming they are in a financial position to do so).
While reinstatements can be a feasible alternative to having your Orlando property foreclosed on, they can be costly for the borrower because they will usually have to pay for all of the lender’s foreclosure expenses, as well as incur increased interest rates on their mortgage from that point on.
Even if you do not have the money for reinstatement and have determined that this may not be the best option for you, it is still wise to seek out the advice of an Orlando foreclosure attorney. They will be able to answer any questions you may have and can guide you through the complicated process that is foreclosure.
Call 407-883-2618 today to speak with one of our experienced foreclosure attorneys at The Freedom Law Firm in Orlando about the options regarding your foreclosure. Call anytime, day or night – we want to help you stay in your home!