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What is a Reinstatement under the Illinois Mortgage Foreclosure Act?

Written by: Ahmad Tayseer Sulaiman

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Posted over 2 years ago. Applies to Illinois, 10 helpful votes, 0 comments

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Reinstatement Defined

Reinstatement of the loan is a right given by the Illinois Mortgage Foreclosure Act which allows the Mortgagor (the Borrower) to cure the default by making the lump sum payment of everything owed in back payments also known as the mortgage arrearage, past payments, penalties, cost of collection and Foreclosure and legal fees to date if said fees are approved by the court.

What is the amount?

You do not need to come up with the entire principal. The amount to reinstate will be provided by the Attorney for the Lender. The amount for the Reinstatement provided by the Bank or their Attorneys is often incorrect. Please beware when reviewing the Reinstatement amount. The right to reinstate belongs to the parties on the mortgage and the right is valid for 90 days after the parties have been served by legal process, which is measured from the date the Summons and Foreclosure Complaint is delivered to the Borrower (served).

What happens after the Reinstatement period expires?

After 90 days the Lender does not have to allow the Borrower to reinstate under the Illinois Mortgage Foreclosure Act. The right is only available once every five years. If you reinstated this loan less than five years ago and are now again in Foreclosure, your Lender does not have to accept your payment and reinstate the loan. When you reinstate the loan you start making payments as before and the Foreclosure case that was pending against you is fully dismissed. Please ensure that you hire competent Attorneys to handle this statutory right for you. A qualified Attorney will be able to proper explain and secure a reinstatement pursuant to the Illinois Mortgage Foreclosure Act.