you where 3 months behind
You made a commitment that it would be paid by said date
You missed that date
You are being fined for missing that date
They have been good in that they gave you terms that you agreed to but did not live up to those terms whether that be a day or 2 days.
You did not abide by the contract now live with it
( I myself cannot see how someone cannot make one payment over 3 months)

You had a deadline to reinstate. You did not pay before the deadline. It went to the attorney to process the foreclosure. All you can do now is give them what they want now to reinstate. The $1500 fees and October & November mortgage before their deadline is the terms they offered. Remember, they have to pay the attorney for the foreclosure work done when you failed to meet the last deadline.

They have offered you terms for a second chance. Take it or lose your house. As for the $3024 you paid for July, Aug & Sept, you owed it, and it will be deducted from what you owed. I.e. it is credited to your account. If you catch up Oct & Nov now, plus the $1500, you will be current on your mortgage & keep your house as long as you pay the mortgage on time from here on out.

If you don’t catch up Oct & Nov, plus the $1500, you’re out of your house. Since the $3K was credited to your account, the amount on the foreclosure is slightly smaller, so if the foreclosure sale or auction results in a “short sale,” you will be slightly less “short” and then have less of a whopping income tax bill than you would have if you hadn’t paid off a bit of the debt.

Get a lawyer.

I would try to call the lawyers office or a manager. That is ridiculous…if they are still going to foreclose even though they have that check then I would put a stop payment on it! But be careful…

try going up the food chain on this one but at least talk with them and try to work out a forbearance agreement with them. This will give you a year to get all caught up by splitting what you owe into 12 monthly installments
I am a mortgage banker in TN & KY