Real Problems Deserve Bold Solutions

One way to keep foreclosure at bay? Reinstatement.

On Behalf of | May 24, 2024 | Foreclosure Defense

The thought of losing your home might be a nightmare. Unfortunately, it’s also a reality for many people. After all, figures show that Cook County, Illinois had the highest number of foreclosures starts in the US in April.

As foreclosure rates skyrocket, there is one sure way to protect your home.

What is reinstatement?

Foreclosure is a lender taking ownership of a mortgaged home when a borrower is behind on loan payments to recover the amount owed.

It is possible to prevent foreclosure through reinstatement. Essentially, it means you restore your loan. You will make up any missed payments and pay other fees to make your loan current to prevent lenders from taking your home. This must occur within 90 days of receiving a foreclosure notice.

It’s understandably challenging to catch up on your mortgage in just 90 days. Reinstatement is often a helpful option for individuals suffering temporary financial setbacks.

What if reinstatement isn’t an option?

If reinstatement isn’t an immediate option for you, there are still other options to avoid foreclosure. You could consider:

  • Negotiating to modify your loan: You could work with your lender to permanently adjust the terms of your loan and make it more manageable. This could involve reducing monthly payments or extending the loan term.
  • Seeking a forbearance: A forbearance is a temporary reduction or suspension of payments for a specified period. This can provide some relief if you’re finding it difficult to meet your current monthly payments.

These alternatives could give you breathing room while your financial situation improves. It may even open up reinstatement as an option to protect your property from foreclosure.

Receiving a foreclosure notice is not the end. There are ways you can protect your home.