What must a trustor do after defaulting on a loan to reclaim their property?

To reclaim their property after defaulting on a loan, the trustor must redeem the property during a specific time frame such as a redemption period, which is often regulated by state law. This period allows the trustor an opportunity to pay off the outstanding amount due, including any penalties or fees, to reclaim their property before foreclosure occurs.

During this time, the trustor can present payment to the lender to halt the foreclosure process. The specific timeframe and conditions for redemption can vary, but understanding the concept of redemption is crucial for trustors facing default, as it provides a pathway to retain ownership of their property.

The other actions listed might be options for the trustor in different situations, but they do not directly address the process of reclaiming property after defaulting on a loan. For example, simply paying the full mortgage amount does not account for potential fees that may have accrued due to default. Negotiating with the lender can be part of a strategy but does not guarantee property reclamation without payment or rectification of the default. Filing for bankruptcy may offer some protections but does not automatically resolve the default or lead to the recovery of the property.