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Foreclosure Attorney Discusses Loan Reinstatements

Foreclosure Attorney

We all experience tough times where loan repayments can be near impossible. But with the help of a foreclosure defense attorney, there’s still hope. He or she might even help prevent the slope towards potential foreclosure and reinstatement. In this article, we go through the ins and outs of loan reinstatements and whether they are the right choice for your situation.

What Is A Loan Reinstatement?

To understand if this type of foreclosure defense will work for you, you’ll need to understand what a loan reinstatement is. The opportunity for a reinstatement strikes if you can make up for any missed loan or mortgage repayments, consequently preventing foreclosure. If you opt for this route, you will generally need to pay a lump sum amount to make up for previous debts.

Most mortgages in Florida provide the right of reinstatement, meaning that you can prevent foreclosure and continue with your loan once the required debts (missed payments and any other fees) have been paid off.

What Are The Pros Of A Loan Reinstatement?

With quality legal representation, reinstatement can be a welcome opportunity for anyone on the brink of foreclosure. Here’s what it can do for you:

  • Gets You Back On Track After A Temporary Financial Setback

    Reinstating your loan is almost like a lifeline or a second chance. Perhaps you had a rough few months and fell behind on your payments. But then you managed to come into some money at the last minute. A reinstatement allows you to continue with the loan and avoid foreclosure. This is convenient and helpful after a difficult financial period.

    Perhaps you got a new job, a bonus or you sold an asset such as furniture or a car. This puts you in the perfect position for reinstatement to pay back what you owe on your loan and get your account up to date. Once reinstatement is successful, you don’t owe any additional money and you can continue with your regular monthly payments. All is not lost!

  • It Reflects Well

    Reinstating your loan shows your lender that you can maintain your monthly payments and repay your debts. This is a step in the right direction and is good for both you and the person or institution to whom you’re paying the money.

What Are The Cons Of A Loan Reinstatement?

Reinstatements might come with some setbacks. For further assistance, it is always best to contact an attorney in your area.

  • A Reinstatement Can Come With Fees And Charges

    Nothing in this world is free, including loan reinstatements. Ensure you carefully read the fine print, as loan reinstatements can come with their own set of costs such as penalties, foreclosure costs, and fees for late payments. And you will need to cover the back payments.

    Make sure you pay all necessary fees on time, as a reinstatement does not always guarantee that the foreclosure sale will be canceled. If the payment is not received and processed before foreclosure begins, the reinstatement probably won’t be accepted. A foreclosure attorney will advise you on payment deadlines to ensure that the process is successful.

  • It Can Maintain A Cycle Of Debt

    A loan reinstatement prevents foreclosure and makes your loan current. But, as you can see from the previous point, there are strings attached. You might fall behind with your loan or mortgage payments, then manage to gather enough money to prevent foreclosure. But the reinstatement might come with its own fees. Perhaps a year down the line, you’re in debt again and on the brink of foreclosure.

    A reinstatement can perpetuate and worsen the cycle of debt. You might’ve needed to borrow money from someone else for the loan reinstatement, meaning that you now have at least two loans to pay off. Break the cycle with the help of a professional.

This type of foreclosure defense might be perfect for your situation. If you qualify for it, reinstatement can be an easy way to prevent foreclosure and continue with your loan. The legal process can be a complex, daunting one. Contact our law firm, Gary I. Handin, PA., for legal services you can count on.

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Law Offices of
Gary I. Handin, P.A.

Providing professional legal services for the city of Coral Springs. Contact us today for a free consultation – 954-796-9600.

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