Foreclosure Short Sale

How Does Reinstatement And Payoff Affect A Florida Homeowner In Foreclosure?

How Does Reinstatement And Payoff Affect A Florida Homeowner In Foreclosure
How Does Reinstatement And Payoff Affect A Florida Homeowner In Foreclosure

There are many reasons that cause a Homeowner to be in Foreclosure.  These could be due to Loss of Employment, Health Issues, or Mismanagement of Finances.  While it may feel like the end of the world, it doesn’t necessarily mean they will lose their Home.  The good news is that during the Process, they can Reinstate or Payoff the Mortgage.  Therefore, if you have questions about these options, contact 954 Foreclosure Attorneys at 954.237.7740.

How Does Reinstatement Benefit A Homeowner In Foreclosure?

If they stop paying their mortgage, they will be served with a Foreclosure.  Thereafter,  the Bank will charge fees that were not permitted when they were current.  These include Attorney’s Fees, Court Costs, and Title Search Expenses. The good news is that they can still reinstate their mortgage.  This occurs when they pay the past and current amount that is owed to the Bank.  However, prior to paying, they must request a payoff  letter from the Bank’s Attorney.  This shows a list of fees that must be paid to reinstate.  These include:

  1. Late Fees
  2. Past and Current Payments
  3. Attorney’s Fees and Costs
  4. Title Searches
  5. Corporate Advances
  6. Appraisal
  7. Broker Price Opinion

Once the fees are paid, the Foreclosure will be dismissed.  In addition, they will continue making payments.

How Does A Payoff Benefit Homeowners In Foreclosure?

When they attempt to sell their home, it usually is a Short Sale.  This means that they will sell for less than is owed.  Similar to Reinstatement, they will request a Payoff.  In response, they are provided a letter that includes the following charges.

  1. Unpaid Principal
  2. Late Fees
  3. Interest
  4. Attorney’s Fees and Costs
  5. Escrow Balance

Aside from the fees, the letter provides a date that they must be paid by.  Most request the “good through” date to be near closing.  The Bank will dismiss the Foreclosure once the fees are paid.  On the other hand, if they are not selling but rather paying it off, they will no longer have a mortgage. In other words, they will own it free and clear.

If you are in Foreclosure have questions about Reinstatement or a Payoff of your mortgage, contact 954 Foreclosure Attorneys, PLLC at 954.237.7740.

A Detroit, Michigan native, Mr. Shipp graduated from Florida State University in 2003. After Law School, Ryan moved to South Florida. Ryan has become a Member of the Florida Bar in 2008 and has protected the Rights of Homeowners in Foreclosure since 2014.

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