Reinstatement means returning your loan to paying status.  You pay all past due amounts at one time to bring the loan current.  You are also responsible to pay any legal fees the loan owner may have incurred if they have already begun the foreclosure process, so the sooner you start the reinstatement process, the less expensive it will be.  If you think you can obtain enough money (perhaps from your retirement plan, friends, relatives, savings, etc.), ask your servicer for the “reinstatement amount" to be sure you pay the correct amount.

Reinstatement helps the lender in many ways and it helps you. Some investors, most mortgage insurance companies, various non-profit organizations, and state and local governments may have programs to advance you the funds you need to reinstate your loan.
 

Ask your servicer if your loan is owned by Freddie Mac or Fannie Mae.  Both of these organizations have programs to advance the funds necessary to return a loan to a current status.  Also ask who your mortgage insurance company is and contact them as they may have reinstatement assistance as well. We’ve put together a list of mortgage insurance companies that may be able to help.

Also, see a listing of consumer assistance resources and credit counseling agencies in your area that are interested in helping delinquent borrowers.