Reinstatement
Reinstatement is paying a lender everything owed — missed payments, late fees, and foreclosure costs incurred so far — in one lump sum to bring a defaulted loan current and stop the foreclosure process before the trustee's sale.
Under California Civil Code Section 2924c, a borrower generally has the right to reinstate up until five business days before the scheduled trustee's sale, by paying the full reinstatement amount — not just the current monthly payment.
That reinstatement amount grows every month a loan stays in default, since it includes accruing late fees, foreclosure-related legal costs, and sometimes property inspection fees the servicer has charged to the loan.
For many homeowners in default, coming up with the full reinstatement lump sum is the real obstacle, not the willingness to catch up. That gap is exactly what a fast cash sale can close, letting the homeowner walk away with remaining equity instead of trying to reinstate an amount they can't realistically raise. Confirm your exact reinstatement figure and deadline directly with the trustee named on your Notice of Default.
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