NOD reinstatement
I live in a Deed of Trust stated and a lender I was talking with stated that a seller has 30 days from when a nod is filed to reinstate. After the 30 days, the seller is not able to reinstate at but and the only option is to go to the courthouse steps or pay the entire loan off. This doesn't sound right to me. I thought that people had until noon before the day of the auction. This is a commerical property I was dealing with by the way. Does anyone know the true answer to this?
Reinstating a loan is when the person who borrows the money brings the loan current after defaulting on the loan by not making the monthly payments. The only way to stop the foreclosure auction and losing the property is to bring the loan current (make the back payments) and reinstate the loan.
Tanya
Thanks for the post. I understand what reinstatement means but my question is whether or not the seller's right to reinstate is gone once 30 days have passed since the NOD was filed.
Once it goes to auction then I don't see how they can reinstate the loan. There may be a redemption period in your state. That will allow the owner to come up with the amount of money that was bid at auction. If they can do that then they keep the house. Otherwise the bank takes it back.
I must have misunderstood your question the first time. Tbelknap is right, after the foreclosure auction some lenders offer the homeowner a redemption period in which they can come current and can get back their home. You should look up the rules at the courthouse for your county on what happens if you bid and they redeem the property.
Tanya[ Edited by tanya1215 on Date 03/18/2003 ]
I apoligize if my post was not clear. Here is the situation. The building that I'm looking to buy is going to the auction steps on April 17th. I called to see how much the reinstatement amount is to bring it current and the lender stated that the reinstatement period is over since the seller did not reinstate within the 30 day window after the NOD was first filed. The lender stated that the only option is to let it go to the auction steps or pay the entire balance before the auction steps. This doesn't sound right to me because I thought you could reinstate all the way up to the date of the auction.
technically you do have up to the last minutes before auction to reinstate the loan..however the lender is correct in that they have the option to reinstate the loan or accelerate it..remember it is the lenders option,because when you miss a payment you have in essence broke the agreements of the contract which allows the lender to accelerate the loan,although most lenders will reinstate the loan,there are some that dont care about making the homeowner destitute