Reinstatement is paying a defaulted loan current, covering the missed payments, late fees and costs the lender incurred, to stop a foreclosure before the sale happens. Once reinstated, the loan continues on its original terms, unlike a loan modification, which changes those terms going forward. Most deeds of trust and loan servicers set a deadline for reinstatement before the sale date.
Why it matters
Reinstating the loan, if you can raise the money, is usually the most direct way to stop a scheduled sale.
General information, not legal or tax advice.