Definition: A borrower's ability, when provided by the mortgage contract or applicable law, to cure a default and restore the loan rather than pay the entire accelerated balance.
Example
A borrower pays the required overdue installments and permitted costs before the contract's reinstatement deadline.
Keep the distinction clear
Reinstatement differs from redemption, which generally involves paying the secured debt. The availability, amount, and deadline depend on the loan documents and governing law.
Related terms
Acceleration Clause · Equity of Redemption · Foreclosure
Keep studying
References: Fannie Mae: uniform mortgage instruments
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