If you’re in a financial position to do so, you can stop a foreclosure by “redeeming” your home — paying off the full balance of your loan. As with reinstatement, above, the first step is to determine exactly how much you owe. If possible, begin 30–60 days before you expect your final payment by requesting a payoff statement from whoever services your loan. (You’ll find their contact information on your monthly statement.) The servicer will set an expiration date for the quote, after which interest will again accrue. In addition to the final month’s principal and interest, you’ll have to pay a small amount for the county to release the mortgage lien from your title. Depending on the terms of your loan, you might also pay a prepayment penalty, as well as any unpaid late fees. The servicer may require a wire transfer from your bank account or a cashier’s check. Either should cost around $20 or less. The servicer will send you a “payoff letter” that will give you the balance as of a specific date and provide instructions on how to pay. (As a practical matter, the servicer might refer you to the foreclosing party’s attorney or the trustee’s office to obtain your quote.) Send or present your request for a quote in writing and hang on to the proof of your request. If the servicer or lender fails to provide the quote, this can work in your favor for challenging the foreclosure. Please note that this amount will differ from the principal balance listed on your monthly loan statement, which does not include interest, late fees, and the foreclosure costs you’ll have to consider for your payoff. The quote you request will be similar to that needed for reinstatement, discussed previously. It will show your unpaid principal balance and interest, fees, and costs. The payoff quote may even conveniently show how much your payment would need to be adjusted if you pay a few days earlier or a few days
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