What Is the Right to Cure?
The right to cure is your legal right to bring your loan current before the lender can repossess or foreclose. If you cure the default, no deficiency balance arises. This is always the best outcome.
Auto Loan Right to Cure
Most states require pre-repossession notice giving you 10-30 days to cure. The cure amount is past-due payments plus late fees -- not the full balance. After repossession, many states give a right to redeem (pay the full balance).
Mortgage Right to Cure
Federal Regulation X requires 36 days notice before filing foreclosure. Many states add their own pre-foreclosure notice with cure periods of 30-90 days.
Frequently Asked Questions
How much do I need to pay to cure?
The cure amount is total past-due payments, late fees, and collection costs. It is NOT the full loan balance. The lender must tell you the exact amount in the notice.
Can I cure after repossession?
In many states, yes, but the window is short. Some states allow reinstatement after repo. Acting quickly is critical -- once the car is sold, the right is gone.
What if I can't afford to cure?
Filing Chapter 13 bankruptcy before repossession or foreclosure stops the process immediately and allows you to catch up over 3-5 years.
Check your bankruptcy discharge eligibility with our free screening tool.
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