Payoff Vs. Reinstatement
I have been given the payoff and the reinstatement dollar amounts. The payoff consist of several items. The reinstatement is less than the PO-loan balance by roughly 1000 bucks. Does this mean by reinstating I am not paying some of the fees or other expenses? The reason I ask, I was planning on paying th PO but if paying the rein then payoff a week later, will save some money, I might just do that.
danger!!! people have a tendency to lose motivation once the looming foreclosure is gone. i always do the payoff at escrow if the difference is minor. what could happen? They could claim fraud, etc., whatever to get free rent.
With a Payoff - the entire amount of the loan is paid off. The loan is paid in full. No additional monies are owed on the loan.
With a ReInstatement - the back payments, late fees, foreclosure costs, etc. are paid to make the loan current. The loan is still in place. The monthly payment is still due every month on the loan.
Hope This Helps,
Mrs. Meltzer
I understand the formalities of the two, but the rein + loan balance is less than the payoff. After I reinstate, I will call the Mortgage company for the payoff. Iassume the payoff will be the loan balance plus any accrued interest. Is that correct? It that is true, than it should be less than the payoff amount I was given by the attorneys.