Mortgage reinstatement provides an option to avoid foreclosure. Instead, you can catch up on your payments and cover any late fees to restore the mortgage by paying the total amount past due. ... At that point, you will continue to make regular monthly mortgage payments for the duration of your loan term.

When can a borrower reinstate her defaulted loan and stop a foreclosure?

"Reinstating" is when a borrower pays the overdue amount, plus fees and costs, to bring the loan current and stop a foreclosure. Under California law, borrowers may reinstate the loan at any time until five business days prior to the date set for the sale of the property.

Can foreclosure proceedings be stopped?

You can stop the foreclosure process by informing your lender that you will pay off the default amount and extra fees. Your lender would prefer to have the money much more than they would have your home, so unless there are extenuating circumstances, this should work.