What Is the Right to Cure?
The right to cure is your legal right to fix a default (usually by making overdue payments) before the creditor can take further action like repossession, foreclosure, or contract termination. Most states require creditors to send a "notice of right to cure" giving you a specific number of days to bring the account current before they can proceed.
This is one of the most important consumer protections in secured lending. It gives you a window -- typically 10 to 30 days -- to save your home, car, or other property from seizure.
Right to Cure in Auto Loans
Before repossessing your vehicle, most states require the lender to send a notice giving you 10-20 days to catch up on missed payments. The notice must tell you: the exact amount needed to cure, the deadline, and what will happen if you don't cure (repossession). Some states require two notices before repossession is allowed.
If the lender repossesses without providing the required cure notice, the repossession may be wrongful. You may be entitled to return of the vehicle and damages. After repossession, you typically have an additional right to redeem (pay the full balance) before the vehicle is sold.
Right to Cure in Mortgages
Mortgage cure rights are robust. Federal law (CFPB servicing rules) requires servicers to wait at least 120 days after a missed payment before starting foreclosure. Most states add additional cure periods on top of this. During this time, you can: make up all missed payments to reinstate the loan, apply for a loan modification, request forbearance, or sell the home.
The cure amount includes: all missed monthly payments, late fees (check if the amount is correct -- overcharges are common), and the servicer's costs. Filing bankruptcy resets the clock and gives you additional time through a Chapter 13 plan to cure the arrears over 3-5 years.
Right to Cure in Commercial Contracts
Many business contracts include a right to cure provision. Before terminating a contract for breach, the non-breaching party must provide written notice and a reasonable opportunity to cure. The cure period is typically specified in the contract -- commonly 15 to 30 days. If you cure within the period, the contract continues as if the breach never occurred.
Review your contract carefully. Some contracts specify that the right to cure only applies to the first breach, or limit the number of cures allowed. Others allow cure only for certain types of breaches (payment defaults but not performance failures).
How to Respond to a Cure Notice
1. Read the notice carefully -- note the exact amount and deadline. 2. Verify the amount. Request an itemized breakdown. Late fees, inspection fees, and attorney fees are often overcharged. 3. Pay the full cure amount by the deadline. Partial payments may not be accepted and do not cure the default. 4. Get confirmation in writing that the cure was accepted and the account is current. 5. If you cannot pay, contact the creditor immediately to negotiate or explore alternatives.
When You Cannot Cure
If you cannot make the cure payment: Negotiate. Some lenders will accept a payment plan or modification. File bankruptcy. Chapter 13 stops repossession or foreclosure through the automatic stay and lets you cure arrears over 3-5 years while keeping your property. Sell the property. If you have equity, selling may be better than losing it to foreclosure or repossession. Surrender voluntarily. This may reduce the deficiency balance compared to forced sale.
Right to Cure After Repossession
In many states, you retain the right to "redeem" collateral even after repossession but before the lender sells it. Redemption typically requires paying the full accelerated balance (not just the past-due amount). The lender must provide you with a notice stating the redemption amount and the deadline (usually 10-15 days after repossession).
Some states also give you the right to reinstate (bring current) rather than redeem (pay in full). Know which right your state provides -- reinstatement is much more affordable. Check your state's protections.
Explore All Topics
Right to Cure by State -- Pre-Default Notice Requirements
Mortgage Right to Cure -- Preventing Foreclosure
Auto Loan Right to Cure -- Preventing Repossession
UCC Cure Provisions -- Your Rights Under the Uniform Commercial Code
Cure Timeline -- Deadlines and Steps to Save Your Property
Cure Notice Requirements -- What Lenders Must Tell You
Bankruptcy Cure -- Using Chapter 13 to Catch Up on Payments
Reinstatement vs. Cure -- Understanding the Difference
After Cure Default -- What Happens If You Default Again
Frequently Asked Questions
How many days do I have to cure a default?
Typically 10-30 days after receiving the cure notice, depending on your state and the type of debt. Mortgages generally have longer cure periods (30+ days). Auto loans vary widely (10-20 days). Always check the specific deadline on your notice.
Does curing a default fix my credit?
Curing the default prevents further negative reporting (repossession, foreclosure). The late payments that triggered the default will still appear on your credit report. However, a cured default is far less damaging than a completed repossession or foreclosure.
Can I cure a default more than once?
In most states, yes, but some lenders and contracts limit the number of times you can cure. After multiple cure events, the lender may argue that the pattern demonstrates inability to maintain the obligation and seek relief from the cure requirement.
Check your bankruptcy discharge eligibility with our free screening tool.
Free Discharge Screener