The Truth About Foreclosure
When it comes to foreclosure, you may find yourself considering many different tactics, most aimed at delaying or eventually stopping the foreclosure.
While some strategies can delay a foreclosure, none are guaranteed to give you what most people ultimately want: peace of mind.
Key Takeaway
Many options focus on buying time. The most reliable way to resolve a foreclosure timeline is to understand what you would need to pay to bring the loan current or pay it off in full.
Ways People Try to Delay or Stall
If your goal is to delay or stall for another day, these are common approaches people consider.
These actions may delay timelines, but outcomes vary and none are guaranteed.
What Most Homeowners Want
Most foreclosure tactics are designed to buy time. Peace of mind usually comes from knowing the exact amount needed to resolve the lender’s demand and understanding which payoff path applies to your loan.
Reinstatement vs Payoff
There are two common amounts you can request from the bank depending on your situation: a reinstatement amount or a payoff amount.
Reinstatement
Reinstatement brings the loan current by paying what is overdue, if the lender allows reinstatement on your loan.
Payoff
A payoff amount is the total needed to pay off the loan in full, including any applicable fees and interest.
Next Steps
If you are facing foreclosure timelines, start by calling your bank and requesting both numbers in writing (reinstatement and payoff), then compare what each option would require from you to resolve the default.
