The mortgage foreclosure process in Pennsylvania can be fraught with anxiety and confusion. Most consumers have no idea how the process works, how long it takes, or what their rights are, and they will get no straight answers from their mortgage company. That is likely why so many homeowners facing foreclosure fail to respond to the legal documents they receive and are unable to save their homes. This article will explain, in general terms, the foreclosure process in Pennsylvania and provide strategies for saving your home.
The process begins when a borrower becomes 60 to 90 days late in paying the mortgage and their account is transferred to the bank’s loss mitigation department. Loss mitigation will immediately send the borrowers a letter, required by law, notifying them of the default and giving them 30 days to get current. The letter will also inform the borrowers of their right to receive free counseling and will include a list of non-profit agencies that may be able to help stop the foreclosure. Contacting one of these agencies will temporarily stop the foreclosure. Every borrower should make an appointment with one of the listed agencies during the 30 day period.
The next step in the foreclosure process is where action must be taken. The account will be transferred to collection lawyers who will file a lawsuit, wait for the sheriff to hand the lawsuit papers to the homeowner and hope the homeowner fails to respond within 20 days of receiving the papers. If no response is filed with the court in that time, the collection lawyer will send a 10 day notice of default to the homeowner. If the homeowner fails to file a response with the court within 10 days of the notice, a judgment will be entered against the property and it will be listed for sheriff sale within 3 to 4 months. THE ONLY WAY TO PREVENT A JUDGMENT, IS TO FILE A RESPONSE WITH THE COURT. Talking with the mortgage company about loan modifications or forbearance agreements will not slow down or prevent a sheriff sale.
Once a judgment is entered, you start losing options so it is crucial to seek help as soon as you receive a complaint and before a judgment is entered.
A bankruptcy can be filed any time before the day of the sheriff sale and will stop the sale and allow you to keep your home. However, at the earlier stages of the foreclosure process, other options may be available as well. |