FORECLOSURES, REINSTATEMENTS, & PRIVATE MONEY

In a Foreclosure, the Homeowner has the Right to Redeem their loan—by paying off the total loan balance to the lender—up to the time the Certificate of Sale is issued.  Another option is Reinstatement, which allows the Homeowner to catch up on all back payments, interest, and whatever attorney fees have accumulated.  But with a Private Loan, Reinstatement might not be available to the Homeowner, depending on the mortgage contract.  If a Homeowner gets behind on mortgage payments and a Private Lender starts to Foreclose, that Private Lender isn’t necessarily going to accept a check and allow a Reinstatement, even on a homestead property.

We need Real Estate Investors to clean up the market and keep it moving.  They prevent a distressed property from sitting for months to no one’s benefit, including the surrounding neighborhood.  Real Estate Investors are important to help stabilize or even uplift the property value in the area.  

When a Private Real Estate Investor offers seller financing, that Private Money mortgage may be different.  As market trends continue to fluctuate, Private Lenders sometimes have to get creative in order to make the loan happen, and that Homeowner can’t necessarily count on a Reinstatement if they go into foreclosure.  

If you or a friend is in foreclosure it’s good to get legal advice, and it’s even better to get it from my brother, attorney Rusty Collins.  You can reach his office at (904) 829-6600.  

From Land Title Talk Podcast -- https://studio.youtube.com/video/6lQ2lzkDNvM/edit

September 17, 2025

Content by Stephen Collins and CJ Godwin