Pennsylvania Foreclosure Laws
Types of Foreclosures Allowed in Pennsylvania
Pennsylvania statute allows for judicial foreclosures on defaulted property. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
Before any foreclosure action can be taken, Pennsylvania law requires that lenders send a notice of intent to foreclose to the borrower. The notice must be sent via first class mail to the borrower and should not be mailed until at the borrower is at least sixty (60) days behind on their mortgage payments.
The notice must inform the borrower that their mortgage is in default and that the lender will accelerate the payments if the borrower cannot cure the default within thirty (30) days. Unless the borrower can pay off their debt immediately, the lender will proceed with the foreclosure by suing the borrower in the court with jurisdiction in the county where the property is located.
If the court finds the borrower to be in default, it will issue an order of sale and the property will then be sold at a Sheriff’s sale under court-established guidelines. The borrower can stop the sale at any time by paying off their debt in addition to any extra costs and late fees. The borrower has until one hour before the sale to stop the process. Once the property is sold, the borrower may not reclaim it.
Lenders will have up to six (6) months after the sale to file for a deficiency judgment if the property sold at auction for less than it was worth.
Working with a Foreclosure Lawyer in Pennsylvania
With the current state of the economy, hundreds of thousands of homeowners are finding it difficult to keep up with their mortgage payments. Many homeowners have experienced pay cuts or have lost their jobs altogether and have fallen behind with their payments. Some homeowners have already had their properties sold while others have yet to receive a notice of foreclosure. As devastating as it may be to be threatened with the possibility of losing your home, there is still a way to prevent foreclosure. If you are a homeowner in Pennsylvania and have already defaulted or have fallen behind on payments, speak to a skilled foreclosure attorney right away for assistance.
Foreclosure attorneys help you fight for your rights as a homeowner in Pennsylvania. Your paralegal will do whatever it takes to ensure you don’t lose your property. Your foreclosure lawyer will review your current financial situation and then speak to your lender to try and work out a plan of action in which everyone benefits. Your foreclosure attorney may suggest mortgage modification, refinancing or even a temporary halt in payments as an alternative to repossession. Since the process of foreclosing a property actually costs lenders a substantial amount of money, if an adequate plan is proposed, your lender will most likely agree to it. Regardless of the plan, you can rest easy knowing that your paralegal will make sure your case ends favorably.
Whether you have defaulted because of pay cuts, job loss or even because you are experiencing problems with your health or the health of a loved one, you still have rights as a homeowner in Pennsylvania. Working with a leading team of foreclosure lawyers will ensure that your rights are upheld and that your case ends with eh best possible outcome. Don’t hesitate another minute before contacting an acclaimed foreclosure lawyer in Pennsylvania to discuss your options and file a claim.