The loan reinstatement is the most common way to save your home from foreclosure through the bank. The foreclosure process in Florida can take several years for some people. This is because there are many steps of the foreclosure process. Not every home forecloses in exactly the same amount of time. There are three primary methods you can save your home from foreclosure. These three methods include loan reinstatement, forbearance, and a loan modification. If you are serious about keeping your home you should look at these three options and determine which method is right for you.
The loan reinstatement is the easiest method for you to save your home from being foreclosed on if you have the money to reinstate your loan. This method is when the lender has initiated the process of foreclosure and you find a way to pay back all of the missed payments, late fees, attorney costs, etc. These amounts must be paid back in full and zeroed out in order for it to be valid.
There are many positive sides to the loan reinstatement. This includes being able to keep your home without the worry of losing it to a foreclosure. You are back at square one with your monthly mortgage payments. You are not behind and you don’t owe any additional money for late fees or anything else. This is the best method and banks are usually willing to accept this method if you can come up with the payments to catch up.
There is a downside to the loan reinstatement that you might want to consider. The downside is that if you have to borrow the money to be able to pay the bank all of the money you now owe someone else. This may be another monthly payment for you. If you are in the foreclosure process because your monthly payments are difficult to be able to afford you might have a hard time making payments on an additional loan too. The loan reinstatement method of saving your home from foreclosure is the most expensive way to save your home. It is important to remember that if you take a loan out to save your home then you must give the bank the entire amount you owe them including the fees. You can’t just pay back the monthly payments you missed or the home may continue to go into the foreclosure process. A bank will not reinstate your loan unless you zero out the balance.
You should be sure you can afford to come up with all of the money in the reinstatement process. If you really cannot afford to do this you might be digging an even bigger hole for yourself. A loan reinstatement is the most commonly accepted method of saving your home if the bank has started the foreclosure process. It’s more difficult to get banks to agree to loan modifications or forbearance agreements because that means the bank loses money.
The foreclosure laws in Florida are changing almost daily. Not everyone will qualify for a loan reinstatement which is why it’s important to consult with qualified loss mitigation professionals. Remember, banks are going to do what’s in their best interest, not yours! Naples attorneys, Marc L. Shapiro, P.A. can help put a package together that helps banks understand why it’s in their best interest to accept a loan reinstatement. Please don’t hesitate to contact us to discuss your property situation.