Mortgage Reinstatement Timeframe

[Craig Norris]

I have a seller who received a NOD on their current home last August. I am currently negotiating a contract for their rental property. They plan to use proceeds from the sale of the rental to put towards reinstating the mortgage on their current home.

Question: 

1. How can I find out when the next step of the foreclosure process begins, aside from asking the seller? They say there is a payment coming up soon, but haven't given me a date.

2. If there's no way, does anyone have any strategies for getting that info from a seller (besides the obvious "Just ask!")?

3. Are reinstatement periods negotiable? Or, are there defined timeframes that banks must adhere to?

Thank you all in advance!

[Bill Gulley]

There is no time frame, but they must attempt to reinstate the loan. All amounts due would need to be paid.

Sounds like, you're not buying traditionally as the loan would be paid off at closing. If you think you're doing an installment contract with that borrower/property on the radar screen, you need to think again. 

There are also new federal regulations concerning "helping" someone in foreclosure and delaying any process, which an installment sale could be viewed as doing, it's also a due on sale issue. You need to get advice from a local attorney, IMO. Good luck :)