Quick Answer
Right to cure means you have a legal right to fix a loan default by paying the past-due amount (plus fees) within a set deadline. The lender must give you written notice and cannot repossess or foreclose until the cure period expires. If you cure the default in time, your loan continues as if the default never happened.
What Does Right to Cure Mean in Practice?
When you fall behind on a secured loan -- a mortgage, auto loan, or other installment agreement -- the lender cannot immediately take your property. In most states, the lender must first send you a notice of right to cure (sometimes called a "notice of default" or "notice of intent to accelerate"). This notice:
- Identifies the exact amount you must pay to cure the default
- Specifies the deadline (typically 10-30 days for auto loans, 30-120 days for mortgages)
- Explains what happens if you do not cure (repossession, foreclosure, acceleration of the full balance)
- May include late fees and costs that must also be paid
Right to Cure Default -- How It Works
A right to cure default is your opportunity to reinstate a loan by paying everything you owe through the cure date. Here is the typical process:
- You miss one or more payments
- The lender sends a notice of right to cure
- You have the cure period (varies by state and contract) to pay the past-due amount plus fees
- If you pay in full by the deadline, the loan is reinstated
- If you do not pay, the lender can proceed with repossession, foreclosure, or acceleration
The cure amount is typically the past-due payments plus late fees and costs -- not the entire loan balance. This is what makes the right to cure so valuable.
Cure Periods by Debt Type
- Auto loans: 10-20 days in most states. Some states (like Connecticut) require 10 days; others allow up to 30. Auto loan cure guide →
- Mortgages: Federal law requires servicers to wait 120 days after default before starting foreclosure. Many states add additional cure periods. Mortgage cure rights →
- Bankruptcy cure: In Chapter 13, you can cure defaults over the entire 3-5 year plan period under Section 1322(b)(5). Bankruptcy cure guide →
What to Do When You Get a Right to Cure Notice
- Read the deadline carefully -- it is often shorter than you expect
- Verify the amount -- check that late fees and charges are correct
- Pay in the exact manner specified -- certified check, wire, or online payment as required
- Get written confirmation -- after paying, request a letter confirming the cure
- Consider Chapter 13 -- if you cannot cure in time, filing bankruptcy triggers the automatic stay and gives you 3-5 years to catch up. See automatic stay guide
Right to Cure by State
Cure rights and notice requirements vary significantly by state. Some states have strong borrower protections with long cure periods; others offer minimal protection. For a state-by-state breakdown, see our right to cure by state guide.
For specific notice requirements your lender must follow, see our notice requirements guide.