How Do I Reinstate My Mortgage?

How Do I Reinstate My Mortgage?

When a homeowner gets behind on mortgage payments, then the homeowner may be at risk for foreclosure.  A mortgage may go into “default” once the homeowner misses 2 or 3 payments.  Missed payments and late fees can add up quickly and make it more difficult for the homeowner to “reinstate” the mortgage.  “Reinstatement” may occur after the homeowner pays the late fees and pre-foreclosure charges.  By reinstating the mortgage, the homeowner restores the mortgage to the original payment terms and schedule.

Some lenders may be willing to negotiate the reinstatement fees, in order to avoid foreclosure. By paying the reinstatement fees, the homeowner can prevent foreclosure and remain in the home pursuant to the terms of the original mortgage.

When a homeowner defaults on a mortgage, the lender may assign the debt to a debt collector to attempt to collect the late fees.  Lenders may also assign the collection of late fees to services.  Debt collectors may charge homeowners “actual” charges and fees to reinstate the mortgage.  Debt collectors may not charge homeowners “estimated” fees.  See Prescott v. Seterus (11th Cir. 12.3.15).

The Fair Debt Collection Practices Act (FDCPA) is a federal law that makes it illegal for debt collectors to charge debtors amounts greater than the actual amount owed to reinstate the mortgage.  The FDCPA provides for statutory damages, plus attorney fees and costs for successful plaintiffs.

The Adkins Firm represents consumers who are charged excessive fees by debt collectors. Have you received a mortgage reinstatement letter?  Does the letter from the debt collector or servicer include estimated fees?

If you answered yes, then you should contact The Adkins Firm for a free case review.  We can be reached 24/7 at 1-800-263-9091.