To reinstate your mortgage in California, the past-due amount, meaning missed payments plus the charges and foreclosure costs the law allows, has to be paid before a cutoff that falls five business days before the scheduled trustee's sale. Once that payment is accepted, the loan returns to normal, as though the lender had never accelerated it.
The cutoff is counted in business days, so a weekend or holiday can quietly shorten the time left. To check your dates with an attorney, call (415) 754-0115 to schedule a free consultation, or use our contact page.
Where the right to reinstate a mortgage in California comes from
Civil Code section 2924c gives California borrowers, and certain others with an interest in the property, a statutory right to cure a payment default in a non-judicial foreclosure. The right applies even when the deed of trust lets the lender demand the entire balance after a default. The cure covers what is actually past due, not principal that would be owed only because the loan was accelerated.
The statutory window opens when the notice of default is recorded. That notice must explain the right to reinstate and state that, upon written request, the lender will provide a written itemization of the full amount needed. Our article on the notice of default in California covers what else it must contain.
What goes into a reinstatement quote
- Every missed monthly payment through the date of reinstatement.
- Late charges permitted by the loan documents.
- Advances the lender made to protect the property, such as property taxes or hazard insurance it paid during the delinquency.
- Foreclosure costs and trustee or attorney fees actually incurred, within limits set by statute.
Payments that come due while a quote is outstanding get added, so a figure that is "good through" a date usually changes once that date passes.
Requesting the figure in writing
A written request to the servicer or the foreclosure trustee, citing the loan number and trustee sale number, asks for the reinstatement amount itemized by category and good through a specific date. A written quote creates a record of both the amount and the payment instructions, which often call for certified funds or a wire.
Checking the numbers
Mistakes happen. Payments made but not credited, repeated property inspection charges, insurance the lender placed while the borrower already had coverage, and fees the loan documents do not allow all deserve questions. Accounting disputes like these can overlap with servicer violations under California law.
The five-business-day cutoff and how postponements affect it
California requires at least three months between recording the notice of default and recording a notice of trustee's sale, and the notice of sale must be posted, published and mailed at least 20 days before the auction. Reinstatement stays available until five business days before the sale date. After that point, the sale can still be stopped by paying off the whole loan before the auction, but no longer by curing the arrears alone.
When a postponement reopens the window
Trustee's sales are postponed often. Under section 2924c, if a sale is postponed for more than five business days, the right to reinstate revives and runs until five business days before the new sale date. The same happens if a new notice of sale is recorded. Each postponement therefore has to be measured against the current sale date, not the one printed in the original notice.
Reinstatement vs. loan modification vs. payoff
Reinstatement
Cures the default with one payment of the arrears and allowed costs. The original interest rate, term and monthly payment continue unchanged.
Loan modification
Changes the loan's terms, often by adding the arrears to the balance or extending the term, so no lump sum is needed. It requires the servicer's approval, and California's dual-tracking rules can restrict a foreclosure sale while a complete application for a first-lien loan modification is under review.
Payoff
Pays the entire loan balance, usually through a sale or refinance of the home. A payoff can stop the foreclosure right up until the sale, but it requires far more money than a reinstatement.
When the arrears are too large to pay at once
Reinstatement depends on a lump sum. Where that is not realistic, other routes may exist. Chapter 13 bankruptcy lets a homeowner repay mortgage arrears over a three- to five-year plan while keeping up with regular payments, and the automatic stay stops the sale while the case proceeds. In Chapter 13, the right to cure a default on a principal residence generally lasts until the home is actually sold at a foreclosure sale. FHA and VA loans carry their own loss mitigation tools, and some servicers offer repayment plans for smaller arrears.
Attorney Bob Somal handles foreclosure prevention, loan modification and Chapter 13 matters for homeowners in Pleasanton, the Tri-Valley and the wider East Bay, as described on our practice areas page.
Frequently asked questions
Can the lender refuse a reinstatement payment?
If the full reinstatement amount is tendered within the statutory window, section 2924c gives the right to cure the default and reinstate the loan. Disputes usually involve the amount or the timing, which is why a written, itemized quote matters.
Who besides the borrower can reinstate the loan?
The statute extends the right to cure to the borrower, a successor in interest in the property, and holders of junior deeds of trust or other recorded liens on it. How the funds must be delivered is set out in the servicer's or trustee's instructions.
Does reinstatement remove the default from my credit history?
No. Reinstatement stops the foreclosure, but the missed payments that led to the notice of default remain part of the payment history the servicer reports.
What if the five-day cutoff has already passed?
The sale can still be stopped by paying off the full loan before the auction, by a postponement that revives the reinstatement right, or in some cases by a bankruptcy filing. After a completed trustee's sale, there is no post-sale redemption period for the former owner.
If a notice of default or notice of sale has arrived and you want to know your exact reinstatement deadline, call (415) 754-0115 to schedule a free consultation with The Somal Law Firm. You can also reach us through our contact page. Bring the notices and any quotes you have received, and we will review the figures, the timeline and the options that fit.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.