Cure the default

Cure the default: The payment of all outstanding mortgage debt.

Cure the default: To meet the obligations of the contract described in the notice of intent that are in default and to pay the costs and legal fees stated in the contract, as well as outstanding taxes.

Cure the Default: Reinstating Your Mortgage After Missing Payments

Homeowners who are behind in their mortgage payments are in default. In order to cure the default, they must make all the payments they have missed.

In most states, the bank will send a right to cure notice to let the homeowner know that they are in arrears or behind in their payments. The right to cure notice means the bank is willing to allow the homeowner to cure the default by making the outstanding payments.

It is usually stipulated within a mortgage contract that the bank will inform the homeowner if they are in default. It may also state the timeframe that the homeowner has to cure the default. Most banks allow for 30 days after receipt of the notice.

The right to cure notice will also inform the homeowner that if they are unable to cure the default, the bank will begin foreclosure proceedings in order to sell the house and pay the outstanding debt.

In most mortgage contracts, the right to cure is specified in paragraph 22. A standard contract will state the following:

“Lender shall give notice to Borrower prior to acceleration following Borrower is breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property.”

If the homeowner is able to cure the default, a reinstatement agreement should be written unless the terms of the debt have been changed, in which case a hybrid reinstatement/modification agreement or even a new note may be drafted.

Cure the default

Cure the default: The payment of all outstanding mortgage debt.

Cure the default: To meet the obligations of the contract described in the notice of intent that are in default and to pay the costs and legal fees stated in the contract, as well as outstanding taxes.

Cure the Default: Reinstating Your Mortgage After Missing Payments

Homeowners who are behind in their mortgage payments are in default. In order to cure the default, they must make all the payments they have missed.

In most states, the bank will send a right to cure notice to let the homeowner know that they are in arrears or behind in their payments. The right to cure notice means the bank is willing to allow the homeowner to cure the default by making the outstanding payments.

It is usually stipulated within a mortgage contract that the bank will inform the homeowner if they are in default. It may also state the timeframe that the homeowner has to cure the default. Most banks allow for 30 days after receipt of the notice.

The right to cure notice will also inform the homeowner that if they are unable to cure the default, the bank will begin foreclosure proceedings in order to sell the house and pay the outstanding debt.

In most mortgage contracts, the right to cure is specified in paragraph 22. A standard contract will state the following:

“Lender shall give notice to Borrower prior to acceleration following Borrower is breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property.”

If the homeowner is able to cure the default, a reinstatement agreement should be written unless the terms of the debt have been changed, in which case a hybrid reinstatement/modification agreement or even a new note may be drafted.

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