What is a reinstatement clause?

A reinstatement clause is a special provision in foreclosure law in Virginia that allows a homeowner to reclaim their home if they can pay the overdue balance and any associated fees. The reinstatement clause is a way for homeowners to avoid foreclosure by getting caught up on their payments. In order for a homeowner to take advantage of the reinstatement clause, they must first contact the lender. If it is determined the homeowner is eligible for reinstatement, they must pay the overdue balance plus any additional taxes, fees, and interest they owe. The amount of the reinstatement as well as the timeline for repayment will be determined by the lender, as long as the total due is under the limit set by Virginia foreclosure law. Once the homeowner pays the agreed-upon amount, the foreclosure process is put on hold and the homeowner regains the rights to remain in the home. If the homeowner fails to meet the terms of the reinstatement clause, then the lender may resume the foreclosure process. In summary, the reinstatement clause in foreclosure law in Virginia provides homeowners with an alternative to foreclosure, allowing them to pay the overdue amount and associated fees in order to remain in their homes.

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What is a reinstatement clause?

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