Carlos purchased a home in Billings using a deed of trust. He later fell behind on his payments and the lender initiated non-judicial foreclosure proceedings. Before the trustee's sale is conducted, Carlos wants to stop the foreclosure by paying all past-due amounts, late fees, and costs. Under Montana law, which right allows Carlos to do this?
Correct Answer
B) Right of reinstatement
Under the Montana Trust Indenture Act (MCA Title 71, Chapter 1, Part 3), a borrower has the statutory right of reinstatement, which allows them to cure a default by paying all past-due amounts, fees, and costs up until the date of the trustee's sale. This right is exercised before the sale occurs and halts the foreclosure process.
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