What Is a Reinstatement Amount? How to Stop Foreclosure in Georgia

If you’ve fallen behind on your mortgage payments and received a notice of foreclosure from your lender, you may have seen a term called a reinstatement amount. Understanding what it means is important if you’re trying to stop foreclosure and keep your home.

I’m Brad with Sell House Fast Georgia, and in this article, we’re breaking down what a mortgage reinstatement amount is, what it includes, and why acting quickly matters when you’re facing foreclosure in Georgia.

What Is a Mortgage Reinstatement Amount?

A mortgage reinstatement amount is the total amount you must pay to bring your mortgage current after falling behind on payments. It includes your overdue mortgage payments and any additional costs your lender has incurred during the foreclosure process.

As attorney and business partner Josh explains, when you can’t keep up with your mortgage payments, your lender may begin taking steps toward foreclosure. During that process, additional fees and expenses can accumulate.

The reinstatement amount combines those overdue payments and applicable charges into one total. Paying that amount, subject to your lender’s requirements and applicable deadlines, allows you to bring your mortgage current and stop the foreclosure process.

Think of it as catching up on everything you owe so you can get your mortgage back on track.

What Does a Reinstatement Amount Include?

Your reinstatement amount isn’t necessarily limited to the monthly mortgage payments you’ve missed. Depending on your situation, it may include several additional expenses.

1. Past-Due Mortgage Payments

The largest part of your reinstatement amount is often the mortgage payments you’ve missed. If you’ve fallen behind for several months, those unpaid installments must generally be addressed to bring your loan current.

2. Attorney’s Fees and Foreclosure Costs

If your lender has referred your account to an attorney or started the foreclosure process, you may also owe attorney’s fees and other permitted foreclosure-related costs.

For example, your lender may have incurred expenses for sending a foreclosure notice or initiating the foreclosure process. Those charges may be added to the amount you need to pay.

3. Escrow Advances for Taxes and Insurance

Your reinstatement amount may also include escrow advances.

If your lender has advanced money for property taxes or homeowners insurance while you’ve been behind on your mortgage, those expenses may become part of the amount required to reinstate your loan.

4. Late Fees and Other Applicable Charges

Depending on your mortgage and the circumstances of your loan, late fees and other applicable charges may also be included.

When you add everything together, you get the total reinstatement amount your lender requires to bring your mortgage current.

How Does Paying the Reinstatement Amount Stop Foreclosure?

Here’s the important part: paying the required reinstatement amount can bring your mortgage current and stop the foreclosure process, provided you meet the lender’s requirements and applicable deadlines.

As Josh explains, reinstating your mortgage essentially resets the clock. Instead of continuing with an overdue loan, you bring the account current by addressing the outstanding payments and required costs.

However, you need to take action before the foreclosure process reaches the point where reinstatement is no longer available.

In Georgia, the timing is especially important. As Brad and Josh discuss, a homeowner generally has the opportunity to bring a mortgage current before foreclosure, but the right to reinstate or redeem the mortgage does not continue indefinitely. Once foreclosure has occurred, you may lose that opportunity.

The specific rights and deadlines that apply depend on your circumstances, so don’t assume you can wait until the last minute to resolve the situation.

Need Help Figuring Out Your Foreclosure Options?

If you’re behind on your mortgage payments, received a foreclosure notice, or are trying to determine how much you need to pay to keep your home, you don’t have to figure everything out on your own.

Or if you’re dealing with a foreclosure notice and trying to figure out your reinstatement amount or what options you have to resolve your situation, we’d be happy to talk with you about it. Simply fill out the form on this page. A member of our team will be in touch with you as soon as possible.

What Happens If You Can’t Afford the Reinstatement Amount?

Understanding your reinstatement amount is one thing. Coming up with the money to pay it is another.

If you can’t afford to bring your mortgage current, it’s important to evaluate your situation and determine what options may be available to you before foreclosure proceeds.

At Sell House Fast Georgia, we work with homeowners facing difficult property situations. Depending on your circumstances and how much time you have, there may be different ways to approach the situation.

Sell Your House for Cash

If you need to sell quickly, we buy properties for cash, purchase them as-is, and close quickly. This may be an option worth discussing if you’re facing foreclosure and need to explore a sale.

List Your House on the Market

If you have enough time before the foreclosure deadline, listing your property on the open market may be another option to consider.

Brad is a licensed real estate agent in Georgia and can help homeowners explore the possibility of listing their property to seek a higher sale price.

The right approach depends on your timeline, property, and financial circumstances. The important thing is to understand your options and take action before you run out of time.

Don’t Wait Until It’s Too Late to Address Foreclosure

A reinstatement amount tells you how much your lender requires to bring your mortgage current. It may include missed payments, attorney’s fees, escrow advances, late fees, and other applicable costs.

If you’re facing foreclosure in Georgia, understanding that amount is an important first step. But you also need to understand your deadline and whether reinstating your mortgage is financially possible.

The sooner you understand your situation, the more time you may have to evaluate your options.

Contact Sell House Fast Georgia Today

If you’re facing foreclosure, need help understanding your reinstatement amount, or want to explore selling your house before foreclosure, reach out to Sell House Fast Georgia.

We buy houses for cash, purchase properties as-is, and can close quickly. If you have time to list your property on the open market, Brad can also help you explore that option as a licensed Georgia real estate agent.

Fill out the form on this page, and a member of our team will contact you as soon as possible. Let’s talk about your situation and help you determine your next step.