How do we find out the mortgage payoff amount and the reinstatement amount, and can the loan be reinstated after missed payments? – North Carolina

Short Answer

In North Carolina, the most reliable way to get a mortgage payoff amount or reinstatement amount is to request a written statement from the loan servicer (the company that sends the monthly statements) and, if a foreclosure has started, to also request a current figure from the foreclosure trustee or the trustee’s attorney. Many loans can be reinstated after missed payments if the loan documents allow it and the servicer accepts a “bring-current” payment, but once a foreclosure is moving forward the timing becomes critical. If the goal is to stop a scheduled foreclosure sale, North Carolina law allows the sale to be terminated by paying the secured debt and required foreclosure expenses before the sale is completed.

Understanding the Problem

In a North Carolina co-ownership situation, a common question is: how can co-owners or heirs confirm the exact amount needed to (1) pay the loan off in full for a sale, or (2) bring the loan current after missed payments, and whether the lender will allow the loan to be reinstated instead of pushing the property into foreclosure. The decision point is whether the immediate goal is a full payoff for a closing or a reinstatement to stop the default while the property is being prepared and listed.

Apply the Law

In North Carolina, most residential foreclosures are handled under a deed of trust “power of sale” process, which involves a trustee and a hearing before the clerk of superior court. When a loan is in default, the servicer’s numbers matter because the servicer controls the account history, late charges, escrow advances, and how payments are applied. If foreclosure is imminent or already filed, the trustee side also matters because foreclosure adds separate, time-sensitive costs (like trustee fees and publication costs) that can change the amount needed to stop the sale.

Key Requirements

Identify the right decision-maker: The loan servicer provides the payoff and reinstatement figures for the loan account; if a foreclosure has been filed, the substitute trustee/trustee’s attorney can confirm foreclosure-related fees and the current “stop the sale” amount.
Request the correct statement: A payoff statement is a “pay in full” number through a specific date; a reinstatement quote is a “bring current” number that typically includes past-due payments plus allowed fees/escrow advances.
Act within the foreclosure timeline: If foreclosure is moving forward, the amount needed can increase quickly, and North Carolina law allows termination of a power-of-sale foreclosure if the secured obligation and required foreclosure expenses are paid before the sale is completed.

What the Statutes Say

N.C. Gen. Stat. § 45-102 (Pre-foreclosure notice for home loans) – requires a pre-foreclosure notice for certain home loans that includes an itemization of past-due amounts and other charges needed to bring the loan current.
N.C. Gen. Stat. § 45-21.20 (Satisfaction of debt before completion of sale) – provides that a power-of-sale foreclosure is terminated if, before the sale is completed, payment/tender is made of the secured obligation and the expenses of the sale (including trustee compensation as allowed).

Analysis

Apply the Rule to the Facts: Here, multiple co-owners/heirs are trying to sell a jointly owned home, but delays and communication problems increase the risk of foreclosure. The first step is to get a written payoff statement so the group knows what a sale must cover, and to get a reinstatement quote so the group knows what it would take to bring the loan current while repairs, cleanout, and listing happen. If foreclosure activity has started, the “stop the sale” number may be higher than the basic reinstatement amount because it can include trustee and foreclosure expenses that change as notices are issued and dates are set.

Process & Timing

Who requests numbers: Typically the borrower on the loan, an authorized representative, or (in some situations) an estate representative. Where: Through the mortgage servicer’s payoff/reinstatement department (phone, online portal, or written request). What: Ask for (a) a payoff statement “good through” a specific date and (b) a reinstatement quote “good through” a specific date, each showing an itemized breakdown. When: As soon as foreclosure risk appears, because the figures can change with fees, escrow advances, and added foreclosure costs.
If foreclosure has started: Contact the substitute trustee or trustee’s attorney listed on the foreclosure paperwork and request the current amount needed to stop the sale, including trustee fees and publication/notice costs. Confirm which payments must be made to the servicer versus the trustee and how funds must be delivered (for example, certified funds or wire).
Coordinate the sale plan: If the property will be listed, provide the payoff statement to the closing attorney/title company early so updated payoffs can be ordered close to closing. If the plan is reinstatement, confirm in writing what the servicer requires (amount, deadline, acceptable funds, and where to send payment) and keep proof of payment and delivery.

Exceptions & Pitfalls

“Reinstatement” depends on the loan and timing: Some loans allow reinstatement up to a certain point; others may require full payoff once the loan is accelerated. The promissory note and deed of trust terms matter, and the servicer’s written quote controls the amount and deadline.
Co-owner/heir authority problems: A servicer may refuse to discuss figures with a co-owner who is not on the loan unless proper authorization is on file. If the borrower has died, the servicer may require documentation showing who can act for the estate before releasing detailed account information.
Confusing payoff vs. reinstatement: A payoff amount is not the same as a reinstatement amount. Using the wrong figure can cause a failed closing or a rejected “bring-current” payment.
Foreclosure costs change the number: Once foreclosure steps begin, trustee fees and notice/publication costs can increase the amount needed to stop the sale. A quote that was accurate last week may be wrong today.
Payment method and proof: Servicers and trustees often require certified funds or wire transfers close to a sale date. Missing a cutoff time, sending funds to the wrong place, or lacking proof of delivery can create serious timing problems.

Related co-owner planning often starts with confirming the ownership record; see who legally owns the land when multiple relatives are listed on the deed.

Conclusion

In North Carolina, the practical way to confirm both the mortgage payoff amount and the reinstatement amount is to request written, itemized quotes from the loan servicer, and—if foreclosure has been filed—to also confirm foreclosure-related fees with the trustee or trustee’s attorney. Many loans can be reinstated after missed payments if the loan terms and servicer allow it, but timing matters once foreclosure costs begin to accrue. The next step is to request a payoff statement and reinstatement quote in writing and calendar the quote “good through” dates immediately.

Talk to a Partition Action Attorney

If co-owners or heirs are trying to sell a jointly owned home while missed payments raise the risk of foreclosure, a partition action attorney can help sort out authority to act, coordinate the sale timeline, and reduce avoidable delays. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.