Right of Reinstatement

What is Right of Reinstatement?


In most states you have the right to reinstate your loan prior to the trustee sale. In California and Oregon, for instance, you can exercise the right of reinstatement up to five days prior to the auction. In Georgia there is no right of reinstatement.

In order to reinstate your loan, you must bring your note current. All fees, expenses and late charges must also be paid.

You must pay the lender with what is referred to as “good funds.” The lender will accept a certified check, but does not have to accept plastic.

Once the loan is reinstated you can continue to make payments as if there had never been a default. If at some future point you miss another payment, the lender must start the foreclosure process from the beginning.