Mortgage Reinstatement: What It Is and How It Works

Couple Discussing Mortgage Options

If you’ve been getting behind and missing your mortgage payments, you run the risk of foreclosure and ultimately losing your home. You have a few options to help you get back on track with your mortgage payments, one of which is a mortgage reinstatement.

What Is A Mortgage Reinstatement?
A mortgage reinstatement is when you pay off the total amount which is past due and get back on track with your normal payments. Mortgage reinstatement is a quick way to get back in good standing with your lender, but it may require a large lump sum of money depending on how many payments were missed. If you are able to pay the sum, a reinstatement is likely a good option for you to catch up on your payments. Lenders tend to prefer mortgage reinstatement over foreclosing a home because foreclosure can be costly and time consuming for them.

If your loan goes into default after you’ve missed payments, your lender will send you a mortgage reinstatement letter. If you don’t receive a reinstatement letter, you can contact your mortgage lender or servicer to ask for one. This letter will break down the amount that is required in order for you to reinstate your mortgage along with a due date and what will occur after the mortgage is brought current. If you have any concerns or questions throughout the process, your lender will be able to help guide you.

Other Options
If a mortgage reinstatement does not seem feasible for you and you aren’t able to come up with the funds to catch up on your payments, you still have other options. You may be able to modify your loan to increase your monthly payments so that you can pay off your past-due amounts. You may also be able to extend the term of your mortgage or get a lower rate with a rate and term refinance. Another option if you can’t reinstate your mortgage is bankruptcy. A bankruptcy may allow you to keep your home and sign up for a repayment plan.

The best thing to do if you start falling behind on payments is to contact your lender to ask for options. They will help you decide on what is best for you and your situation and will work to help you keep your home.

For more information, chat with us at or give us a call at 866-Call-Hall.