Foreclosure Defense Lawyer Near Me in Philadelphia

If your home is at risk of being foreclosed upon, you should take immediate action to mitigate losses and avoid responsibility for balances or deficiencies following the sale of your home. It is crucial to employ the use of legal aid if you are facing foreclosure. An attorney will be able to help you make educated choices about what you can do to avoid having your home foreclosed upon and can help you understand the time restrictions that apply to certain critical steps in the process.

Don’t delay taking action on your foreclosure; foreclosures can move quickly, leaving you with little time to make decisions. Use the help of an attorney to do what is best for your home and family. The lawyers of Young Marr & Associates have the skill and experience to help Philadelphia residents avoid foreclosure. Contact them as soon as possible to schedule a free and confidential legal consultation. Call (866) 781-4058 before it’s too late.

The Mortgage Foreclosure Process in Philadelphia

The foreclosure process begins after a borrower falls behind on their mortgage payments. Ultimately, a foreclosed property will be sold in a sheriff’s sale to the highest bidder or will be given back to the lender.

After a borrower has fallen behind on their mortgage payments for at least 60 days, they will receive two pre-foreclosure notices:

  1. “Act 6” or “PA Act 6 Notice” – This notice alerts the mortgage borrower to the foreclosing lender’s intention to foreclose on the property. It will be sent within 60 days following the borrower’s nonpayment of their mortgage.
  2. “Act 91” – This notice provides Philadelphia residents with information about the Homeowners’ Emergency Mortgage Assistance Program (HEMAP).

After the borrower receives a foreclosure notice, they will have 30 days to respond by either setting up a payment plan or making all delinquent payments, along with the associated fees. They may also respond to the notice with objections or counterclaims. If the borrower fails to respond to the lender with a solution, then the lender will file a lawsuit against the borrower, which is called a judicial foreclosure proceeding. The borrower will be known as the “defendant” and the lender will be the “plaintiff.” In this type of lawsuit, the resolution to the foreclosure will rely on the court’s final judgment.

After the foreclosure complaint has been filed, the borrower will have 20 days to file an answer. If the answer is not filed or does not provide a proper defense, the property will then be listed as part of a sheriff’s sale. The borrowers will receive notice of the sale of their property at least 30 days prior to the sale. If the resident of the foreclosed-upon home continues to occupy the home following the sheriff’s sale, the lender will file a complaint in ejectment.

Homeowners in Philadelphia should be aware of the statutes that are intended to protect borrowers from abusive lending and foreclosure practices. One of these is the Loan Interest & Protection Law, which sets a cap of 6% on the interest that banks can charge on loans. The other statute that protects borrowers in Philadelphia is the Homeowners’ Emergency Assistance Act, which is meant to help borrowers seek financial, housing, and legal assistance and requires that borrowers facing foreclosure receive information about programs that provide financial aid.

Philadelphia’s Residential Mortgage Foreclosure Program and Conciliation Conference

Philadelphia residents who are facing foreclosure have the option of entering into a mortgage assistance program. This program offers loans up to $60,000 to homeowners that qualify. The program can last up to 36 months following the date of delinquency. Homeowners who participate in the program must pay up to 40% of their monthly income toward these payments.

Philadelphia residents who are facing home foreclosure may also receive free housing and legal advice. Homeowners may also participate in a conciliation conference mediated by a free housing counselor, during which the lender and the borrower meet to discuss alternatives to foreclosure. Possible solutions reached during this conference may be a forbearance in which the borrower receives a time extension that will allow them to recover from financial hardship, a loan modification that will adjust the conditions of the loan, or a payment plan that will allow the borrower to become current with their payments.

How to Avoid a Mortgage Foreclosure in Philadelphia

Homeowners facing foreclosure in Philadelphia can increase their chances of avoiding foreclosure by promptly answering the foreclosure complaint and all other notices that they receive. An experienced attorney can work with homeowners facing foreclosure to file answers that will mitigate losses.

For some homeowners facing foreclosure, declaring bankruptcy may be the best option. Chapter 13 bankruptcy will allow borrowers to make a plan with lenders to pay past-due or delinquent payments. Chapter 7 bankruptcy will buy time for the borrower by issuing an “automatic stay,” which will temporarily postpone the foreclosure proceedings, giving borrowers time to make missing payments.

Contact Our Philadelphia Foreclosure Defense Attorneys

Don’t allow the threat of foreclosure to overwhelm you. With the help of a knowledgeable attorney from Young Marr & Associates, you can keep control of the foreclosure process. Act now because time may be running out; contact the attorneys of Young Marr & Associates today by calling (866) 781-4058.