What is a reinstatement clause?

A reinstatement clause is a provision in a foreclosure law that allows a homeowner to keep their home if they pay off the full amount of their defaulted mortgage. In Washington, this clause outlines the terms and conditions necessary for the homeowner to be granted a reinstatement. These conditions include the amount of the past due payments, along with any fees or costs associated with the foreclosure process. The reinstatement clause specifies the deadline in which the homeowner must satisfy the conditions in order to retain their home. The exact deadline can vary depending on the individual circumstances, but in general the homeowner has three to four months to make up the full payments. If the homeowner fails to meet the terms outlined in the reinstatement clause, the lender is then allowed to proceed with foreclosure proceedings. The reinstatement clause also serves as a protection for the homeowner, as it states that once the homeowner has satisfied the conditions specified in the clause, their default is considered cured, and their foreclosure proceedings are reversed. This gives the homeowner an opportunity to make up the past due payments, while preserving their right to continue living in their home. In addition, the clause prevents the lender from charging a penalty fee or charging other fees related to foreclosure proceedings.

Related FAQs

What is a homestead exemption in a foreclosure?
What is a deficiency judgment in a foreclosure?
Can a foreclosure sale be reversed?
What happens to the homeowner's equity in a foreclosure?
How do I avoid foreclosure proceedings?
What are the legal consequences of a foreclosure?
Can the lender continue to collect late fees and interest during a foreclosure sale?
What is a deed-for-lease in a foreclosure?
What is a foreclosure auction?
What type of notice is required before a foreclosure sale?

What is a reinstatement clause?

Related FAQs

Related Blog Posts