Reinstating of Loans - Posted by Scott (CO)

import · July 25, 2001, 11:03am

Posted by Scott on July 26, 2001 at 11:42:42:

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import · July 25, 2001, 11:03am

Posted by Scott (CO) on July 25, 2001 at 11:03:12:

I’m trying to find out if a foreclosing loan (whether a 1st or 2nd) can always be reinstated, even the day before the sale. Or does this vary by note terms or by State?

Any clarification hear would be very much appreciated…I’m focusing on discounting defaulted mortgages and trying to learn the nuances.

Thank you
Scott

import · July 25, 2001, 2:56pm

Re: Reinstating of Loans - Posted by David Butler

Posted by David Butler on July 25, 2001 at 14:56:23:

Hello Scott,

It does vary by state, and also by method (power of sale vs. judicial foreclosure)… be aware too that more than a few states have “redemption” periods AFTER the “sheriff’s sale”, whereby the foreclosed Payor can still reinstate the loan for up to one year after the sale date.

You definitely want to research the state laws in the state you choose to operate in, and in this situtation, lender regulations related to rights and prohibitions related to defaulted loans you are purchasing.

Great niche to work in, so long as you become fairly well-grounded in the fundamentals of it. Hope this helps, and best of luck in finding your roadmap to this Yellow Brick Road!

David P. Butler