A reinstatement allows homeowners to catch up on missed payments and restore their loan to good standing—without refinancing or modifying the loan. Here’s what every California homeowner should know before time runs out.
1. What “Reinstatement” Really Means
Under Cal. Civ. Code § 2924c, a borrower in default can “reinstate” the loan by paying the past-due amount plus late fees, trustee fees, and other reasonable costs. Once the payment is made in full, the lender must stop the foreclosure process and restore the loan as if no default occurred. Reinstatement is not the same as payoff—it simply brings your account current.
2. The 90-Day Reinstatement Period
From the date the Notice of Default (NOD) is recorded, you have at least 90 days before a Notice of Trustee’s Sale can be posted. During this window, the right to reinstate remains fully available. After the sale notice is issued, you still retain the right to reinstate up to five business days before the scheduled auction. Missing that window means the only way to keep the property is by paying off the full loan balance before sale.
3. How to Request a Reinstatement Quote
Contact your lender’s loss-mitigation or foreclosure department in writing. Ask for a written reinstatement amount that includes:
- Past-due principal and interest
- Late fees
- Trustee’s fees and foreclosure costs
- Any property inspection or BPO fees
By law, the servicer must provide an accurate figure within a reasonable time. Keep every correspondence in writing.
4. Payment Methods and Documentation
Reinstatement must be made in certified funds—typically a cashier’s check or wire transfer. Once the payment posts, obtain a written confirmation of reinstatement from the trustee or lender. That proof is your safeguard against any accidental continuation of foreclosure activity.
5. Tips for Success
- Always communicate in writing.
- Avoid third-party “reinstatement companies.”
- Confirm the trustee’s name and phone number on your NOD—scammers often pose as trustees.
- Keep copies of every payment receipt and email.
A timely reinstatement is often the fastest, least expensive way to stop foreclosure in California—without losing ownership or entering a new loan agreement.
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