Delinquent Mortgage Loan Reinstatement
Probate Advance Center is one of the only companies in the nation that will reinstate a delinquent mortgage loan as a third party on behalf of the borrower. We typically do this for properties that are in the probate process and have a looming foreclosure or trustee auction that needs to be postponed to allow time for the sale of the property. We may consider other scenarios where a reinstatement is needed as well.
Why We Do This When Nobody Else Will?
Although these types of advancements are extremely risky for us, we understand that they are often vital for an estate to gain much needed time and reduce pressure, allowing the estate to focus on getting the property to a sellable state and achieve maximum recovery. This is special service that we perform when nobody else will.
A third-party mortgage loan reinstatement is typically needed when there is a mortgage auction or trustee sale scheduled and a 60-90 day Temporary Restraining Order (TRO) will not give the estate enough time to bring the property to a sellable state. Often, a house may be deep in the foreclosure process and there may be someone living in the property and/or the property is in need of maintenance before placing it on the market.
Why Don't Other Companies or Probate Court Reinstate Loans for Estates?
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Recidivism Risk: The mortgage will most likely default again because the mortgage payments aren't being made. If the lender forecloses again before a successful sale, the fees paid to reinstate will b lost. Also, this recurring default will continually chip away at the equity position of the property and may not leave enough funds to recoup the reinstatement fees paid. Therefore, before we agree reinstate a loan, it is very important that we fully understand the current situation and valuation of the property.
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Reduced Recovery Value: If the property is vacant, there could be many unforeseen challenges that prevent a sale and may worsen the condition of the property. Such challenges are squatters, vandalism, water damage, mold damage, and fire damage to name a few.
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Legal Risks: Very few legal options exist to protect the company that reinstates a delinquent mortgage during the probate process. If a sale is not successful, there is typically no recourse.
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Additional Time and Costs: There are many complexities to the reinstatement process on top of just paying the delinquent mortgage balance. These include: risk analysis, payoffs & reinstatement quotes, processing, preliminary title report review, notice to creditors review, multiple valuation assessments, etc. These take time and can be very costly. ​​​​
Need a Mortgage Loan Reinstated?
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