Pennsylvania Foreclosure Process: A Comprehensive Guide
Preforeclosure Stage
Key Facts
- Preforeclosure Stage: The period after you fall behind in payments, but before a foreclosure officially starts, is generally called the “preforeclosure” stage. During this time, the servicer can charge various fees and must provide you with information on how to avoid foreclosure.
- Notice of Intent to Foreclose: Before officially starting the foreclosure process, Pennsylvania law requires the lender to give you a 30-day notice of intent to foreclose, providing an opportunity to cure the default. However, this notice may not be required if you abandon the home.
- Foreclosure Diversion Program: While Pennsylvania doesn’t have a statewide foreclosure mediation program, some counties offer foreclosure diversion (or conciliation) programs. These programs provide opportunities for borrowers and lenders to reach a workout and avoid foreclosure through options like loan modification, repayment agreement, forbearance agreement, short sale, or deed in lieu of foreclosure.
- Judicial Foreclosure: In Pennsylvania, foreclosure is a judicial process, which means it involves filing a lawsuit and going through the litigation process. If you don’t respond to the foreclosure lawsuit, the lender may obtain a default judgment, allowing them to hold a foreclosure sale. However, if you choose to defend the lawsuit, the case will proceed through the court system.
The preforeclosure stage commences when a borrower falls behind on mortgage payments. During this period, the servicer can impose fees and is obligated to provide information on foreclosure prevention.
Notice of Intent to Foreclose
Pennsylvania law mandates that lenders issue a 30-day notice of intent to foreclose before initiating the foreclosure process. This notice provides borrowers an opportunity to rectify the default. However, it may not be required if the property is abandoned.
Foreclosure Diversion Program
While Pennsylvania lacks a statewide foreclosure mediation program, certain counties offer foreclosure diversion (or conciliation) programs. These programs facilitate negotiations between borrowers and lenders, exploring options such as loan modifications, repayment agreements, forbearance agreements, short sales, and deeds in lieu of foreclosure.
Judicial Foreclosure
Pennsylvania employs a judicial foreclosure process, which entails filing a lawsuit and proceeding through the court system. If the borrower fails to respond to the foreclosure lawsuit, the lender may secure a default judgment and proceed with a foreclosure sale. However, if the borrower contests the lawsuit, the case will be adjudicated in court.
Sources
- Guide to the Foreclosure Process in Pennsylvania
- Pennsylvania Foreclosure Laws and Process
- The Foreclosure Process
FAQs
How many missed payments before foreclosure in PA?
In Pennsylvania, a lender can initiate foreclosure proceedings if a borrower is more than 120 days past due on their mortgage payments.
What is the preforeclosure stage in PA?
The preforeclosure stage is the period after a borrower falls behind on mortgage payments but before a foreclosure officially starts. During this time, the servicer can charge various fees and must provide information on how to avoid foreclosure.
Does Pennsylvania have a foreclosure mediation program?
Pennsylvania does not have a statewide foreclosure mediation program, but some counties offer foreclosure diversion (or conciliation) programs.
What is the foreclosure process in PA?
Foreclosure in Pennsylvania is a judicial process, which means it involves filing a lawsuit and going through the litigation process.
What happens if I don’t respond to a foreclosure lawsuit in PA?
If you don’t respond to a foreclosure lawsuit in PA, the lender may obtain a default judgment, allowing them to hold a foreclosure sale.
What are my rights during foreclosure in PA?
During foreclosure in PA, you have the right to receive proper notice, apply for loss mitigation, participate in a foreclosure conciliation conference (depending on the county), get notice of the foreclosure and the chance to respond in court, receive special protections if you’re in the military, get current on the overdue amounts to stop the sale, pay off the total loan to prevent a foreclosure sale, and get any excess money after a foreclosure sale.
Can I stop foreclosure in PA?
Yes, there are several ways to stop foreclosure in PA, including catching up on missed payments, applying for loss mitigation programs, filing for bankruptcy, or disputing the foreclosure in court.
What happens after a foreclosure sale in PA?
After a foreclosure sale in PA, the lender will receive the proceeds from the sale. If the proceeds are less than the amount owed on the mortgage, the lender may pursue a deficiency judgment against the borrower for the remaining balance.