Posted by BankRobber on February 19, 1999 at 19:06:28:
Yes, the property owner has the right to reinstate the loan prior to sale (unless it was a ballon payment loan and the loan is due in full). However, I suspect that the Realtor has misinformed you. I would bet that the sale has already taken place and that the property is now in the owner’s redemption period. The Lender can’t reinstatement of the loan during the redemption period.
Can I “reinstate” the loan? - Bill B. or anyone who knows - HURRY! - Posted by Hardy Griffin
Posted by Hardy Griffin on February 19, 1999 at 16:55:40:
I am negotiating to buy a house from someone in CO who is several months behind on mortgage payments. According to the owner’s realtor, the bank is demanding FULL payment (plus arrears, atty fees, etc.) of the balance of the loan. They won’t accept just the back payments. The foreclosure sale date is nearing.
Doesn’t the owner have the right to reinstate the loan before the sale no matter what the bank says? Further, If I get the house under contract, do I have the right to reinstate the loan?
Thanks for your response!
Re: Can I “reinstate” the loan? - Bill B. or anyone who knows - HURRY! - Posted by Jason-DTX
Posted by Jason-DTX on February 20, 1999 at 23:16:59:
It really depends on your state’s law. In Texas, it is a deed of trust state but The banks don’t have to allow reinstatement once the property is posted for foreclosure (unless the deed of trust allows it) That can be 21 days or more before the auction. However I’ve found that most of them will reinstate up to the day of the sale. Also the is no redemption period here, so once its sold at auction, its gone!
You really need to check YOUR deed of trust or mortgage and Your State law to be certain
Jason
Re: Can I “reinstate” the loan? - Bill B. or anyone who knows - HURRY! - Posted by Bill
Posted by Bill on February 20, 1999 at 24:34:00:
IF the note was secured with a trust deed, the borrower can reinstate up to 5 days prior to sale. if it was secured by a mortgage, normally the lender can demand payment in full, but then the borrower also has a right of redemption after the sherrifs sale.
You need to find out what form of security was used in this loan.