Foreclosure or Reinstatement in San Jose, CA?

If you encounter occasional financial difficulties, you may fall behind on your home mortgage and accumulate arrears. However, you can opt for a loan modification that allows you to keep your home and make payments towards the arrears in installments. Another alternative is a loan reinstatement, which involves paying off the entire amount of arrears and fees to bring your loan status to current.

Loan reinstatement is a preferred option for lenders as it avoids the long and complicated foreclosure process, which may result in the lender receiving less money than the property's worth. The reinstatement process starts by determining if your lender has initiated foreclosure proceedings against you. If not, you can request a reinstatement quote, which is valid for 30 days before your payment date. You can pay the exact amount listed on the quote, and the default is cleared, allowing you to resume regular mortgage payments.

However, it is crucial to have legal representation to ensure that the foreclosure process has been dismissed, even if you have paid all the fees and arrears. Also, it is recommended to get the reinstatement quote in writing to avoid misunderstandings, and if there is any error in the quote, you can send a "notice of error" to your lender to correct it within seven business days.

If the foreclosure process has already started, you should hire a foreclosure defense attorney, who will represent you, file the necessary court papers, and negotiate with the lender's attorney. It is essential to act quickly to avoid losing your home. You can also explore other options to stay in your home, in addition to mortgage reinstatement.

If you are considering mortgage reinstatement, it is wise to contact a real estate attorney to guide you through the process and help you navigate any unforeseen obstacles of homeownership. They can look out for your best interests and answer any questions you may have.