Worker Helping With a Mortgage Reinstatement Cardoza Law CorporationEven the best of us can fall on hard times and struggle to make mortgage payments. If you have fallen behind on your mortgage, you may be threatened with foreclosure. For many people, there is not much to be done. If you don’t have the money to pay everything you owe and continue to make payments, you will probably have to default and lose your home. However, if things are looking up and you think you can make back payments and continue to pay each month, you may be able to reinstate your mortgage.

Your Fair Debt Collection Practices Act (FDCPA) Rights

Going through the process of reinstating your mortgage is not easy, but if you want to keep your home and you have a new job, a second income, a generous relative, or some other financial means, it could be a good option. Defaulting on a mortgage will have a negative effect on your credit report, but working to reinstate it is the best way to bring your score back up. You should understand that your lender may assign the debt to a debt collector and you will face additional fees for the reinstatement, but the FDCPA protects you from overcharges.

  • Debt collectors cannot charge “estimated” fees but can charge a late fee and the “actual” cost of the reinstatement.
  • Debt collectors cannot charge you more than the actual amount you owe to reinstate your mortgage.

If a lender or debt collector does overcharge you to reinstate your mortgage, the FDCPA allows for statutory damages, attorney fees, and other costs, but you will have to take legal action to exercise your right to damages.

Don’t Allow a Mortgage Debt Collector to Take Advantage of You

You’re trying to do the right thing and save your family home. While it takes dedication and will not be cheap, you should not be illegally penalized. If the numbers aren’t adding up, take a minute to tell me what’s going on. If I think you have cause to sue the debt collector for damages, I will help you get started. Contact me online or call my office directly at 855.982.2400 and I’ll get back to you ASAP.


Michael F. Cardoza, Esq.
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U.S. Marine & Consumer Financial Protection Attorney helping victims of ID theft and Credit Reporting errors.
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