Reinstatement of Your Home Loan or Mortgage After Default?

You don't have to be a bum or a deadbeat to get into a foreclosure position with your home. It can be as simple as missing some days of work or having a mortgage payment late. You are in over your head with your lender. Now your lender's threatening you with foreclosure. The last thing you need is the stigma of foreclosure and are seeking a way out.

If it's possible, the best way to get out of this mess is to come up with cash and go for reinstatement of the loan.

This could be difficult. The lender requires you to catch up with payments and late fees in a lump sum. If you can work this out, get it in writing. The only chance you have of making it happen is if you satisfy the lender that conditions that led to this situation will not be repeated.

Be careful with this. Hire a qualified and professional Realtor, someone to trust who will look out for you during tough times. Get sound advice from an objective advocate who will be in your corner.

Then decide for yourself whether reinstatement of your defaulted mortgage is a possibility and/or the best course of action.

Posted by Harrison K. Long, Explore Properties Group, May 2, 2008