Bucks County, PA Mortgage Foreclosure Defense Lawyer
Stopping mortgage foreclosure in Pennsylvania is possible. Unexpected yet ordinary life events can cause people to fall behind in mortgage payments such as illnesses, unexpected expenses, job loss, an accident, and other unfortunate and unexpected situations. If you’re facing mortgage foreclosure, Pennsylvania law offers venues to work things out with the foreclosing lender or lenders. Pennsylvania also provides substantial rights against unfair, deceptive, and usurious banking practices. Properties in Pennsylvania are sold to the highest non-party bidder or revert back to the foreclosing lender. You are required to leave the property. Also, there is no right to recover the home after the foreclosure sale, and you can be chased with a separate lawsuit if the proceeds of the sale don’t cover the balance owed in the mortgage.
Young Marr & Associates are skilled and experienced Mortgage foreclosure lawyers with an unwavering commitment to stop foreclosure in Pennsylvania and help you obtain a fair outcome. Your initial consultation is totally free of charge and confidential. Call us at (215) 607-7478 to schedule a free consultation or contact us online.
Bucks County Mortgage Foreclosure Diversion Program
Bucks County judges require homeowners eligible to enter this program to meet with a housing counselor and attend a conference with the lender where an agreement can be made with the lender regarding loan modification, forbearance or payment plans. Scheduling this conference date stops all further action until at least 20 days after the conference.
Will I Receive a Formal Notice of Foreclosure?
Preliminary notices are required to inform a borrower of delinquent delays in mortgage payments. These notices must be compliant with Pennsylvania Rules of Civil Procedure Sections 1141 through 1164, which give instructions regarding actions to foreclose a mortgage.
There are two pre-foreclosure notice requirements in Pennsylvania:
- “Act 6” or “PA Act 6 Notice” provides the model that must be followed in Pennsylvania foreclosure notices. This means that the notification stating the intention to foreclose the property must be sent within 60 days of the nonpayment. The borrower has 30 days to set up a payment plan or cure the default responsible for late fees, attorney’s fees, and costs.
- An “Act 91” Notice provides Pennsylvania residents with information on Homeowners Emergency Mortgage Assistance Programs.
Strict Foreclosure Documentation Required in Pennsylvania
The Pennsylvania Court of Common Pleas is the judicial unit where foreclosures are filed. The foreclosure action must have attached what is known as lis pendens, which is the term used to identify the document containing the public notice announcing that the property is being foreclosed upon. The lender must also include the mortgage documents. These are typically the “security agreement” or “promissory note” establishing the underlying debt and repayment terms.
You also must receive the foreclosure complaint. The foreclosure complaint is the legal document filed in a court stating the borrower has missed enough payments warranting a foreclosure action. A copy must be provided with a summons or order to appear in court. If the foreclosing lender is unable to supply this complaint to you, advertisements of the foreclosure action have to publicize in papers.
There is a term of 20 days to answer the foreclosure complaint. Default or nonattendance is entered if the complaint is left unanswered. If no answer is furnished within the 20-days, the borrower will receive a 10-day notice stating that the foreclosure will be granted.
How Can I Avoid Foreclosure in Bucks County, PA?
Filing an answer to the foreclosure complaint is necessary for a successful defense. The answer you file is where the borrower raises defenses and answers the allegations the foreclosing lender makes in the judicial complaint. The answer gives borrowers an opportunity to admit or deny claims. The defenses can be facts about how the lender contributes to creating the grounds for the foreclosure. For example, if the lender didn’t credit your payments or failed to honor a grace period previously allowed.
If you fail to answer the foreclosure complaint, the foreclosure will move forward. The lender can file what is known as a “motion for summary judgment” if you fail to answer the complaint. This motion is essentially an official legal request for the judge to sign off on the foreclosure sale. The trial is typically scheduled if the lender’s summary judgment request is denied.
How Can a Lawyer Help With a Foreclosure Defense?
Pennsylvania Rules of Civil Procedure Sections 3180 through 3183 set rules for mortgage foreclosure. A 30-day notice is required before the foreclosure sale occurs. There are also state and federal laws specifically designed to protect borrowers in Pennsylvania who are facing mortgage foreclosure. These laws include The Loan Interest & Protection Law and The Homeowners Emergency Assistance Act.
A foreclosure sale is considered unlawful if notices are not furnished adequately. Foreclosure notices must be posted on the premises of the at least 30 days before the scheduled sale takes place. This notice has to be published in a newspaper once a week for three weeks at least 21 days before the date of the sale.
Can I Recover My Home After a Foreclosure Sale in Pennsylvania?
There is no legal recourse to get the house back. Borrowers in Pennsylvania have up to one hour before the bidding begins at the foreclosure sale to reinstate the mortgage. Reinstatement means you catch up with payments and late fines so that mortgage is reactivated.
A deficiency judgment action is the lawsuit filed if the foreclosure sale doesn’t satisfy the debt. You may be held responsible for the shortfall owed to the bank. A deficiency action must be presented within six months of the foreclosure sale. The deficiency amount cannot exceed the fair market value of the property. Pennsylvania Rules of Civil Procedure Section 8103 govern deficiency judgments.
Call Our Bucks County Foreclosure Defense Attorneys to Help You Fight
An experienced foreclosure lawyer can help if you are concerned with loss mitigation and think that the foreclosure has to be challenged. Foreclosure actions are incredibly frightening and unjust actions that can be missed without the help of an experienced professional. The Philadelphia bankruptcy attorneys of Young, Marr & Associates can help you make an informed and financially sound decision. Call today for a free consultation at (215) 607-7478.