Final answer:
The statement is true. When a borrower has defaulted on a mortgage but has made up all missed payments, plus any late fees and other charges, it is possible for the lender to restore the mortgage. This is known as loan reinstatement or mortgage reinstatement.
Step-by-step explanation:
The statement is true. When a borrower has defaulted on a mortgage but has made up all missed payments, plus any late fees and other charges, it is possible for the lender to restore the mortgage. This is known as loan reinstatement or mortgage reinstatement.
Reinstating the loan means that the borrower is given the opportunity to catch up on missed payments and continue with the original terms of the mortgage. It typically involves paying the outstanding balance and any associated fees or costs.
For example, if a borrower missed three monthly mortgage payments and accumulated late fees and charges, they would need to pay off the three months' missed payments, plus the late fees and charges, to reinstate the mortgage.