Montgomery County, PA Mortgage Foreclosure Defense Lawyer
Facing a foreclosure process is a life-changing event. There are no words to describe the heartbreak and fear that can come with the prospect of losing your home. The loss of a home is a sad reality for Pennsylvania residents since there is no right to redeem or recover the property after the property is sold. There are ways an attorney can help you navigate this process. If your goal is to keep your home and/or to mitigate the losses, you shouldn’t take this on without a knowledgeable professional on your side. Even if you’re prepared to lose the property, you can be responsible for the balance or deficiency remaining after the foreclosure sale. There are important rights that can be protected if you’re facing foreclosure. Legal help can help you make educated decisions in a strenuous foreclosure process. As more time passes and the deeper you get into the foreclosure process, the harder it will be to stop it.
Montgomery, PA attorneys of Young Marr & Associates are skilled and experienced foreclosure lawyers Their experience combined with an unwavering commitment to helping you obtain the best results possible can help you make informed decisions. Your initial consultation is free of charge and confidential. Call us at (215) 701-6519 to schedule a free consultation or contact us online.
Will I Be Notified of a Mortgage Foreclosure in Montgomery County?
The foreclosing lender must send official notices when you miss mortgage payments. It is important to keep track of deadlines and contact the servicer or foreclosure attorney because it will be helpful to be familiar with the options available such as loan modification or forbearance. The notification stating the intention to foreclose the property must be sent within 60 days after the borrower fails to pay. The borrower has 30 days subsequently to set up a payment plan or catch up with the amount owed and associated fees. It typically takes 120 days to complete an uncontested foreclosure. A contested or challenged foreclosure usually takes longer, especially if delays and extensions are requested.
The Pennsylvania Act 6 Notice provides the model that lenders must follow in Pennsylvania requiring “full disclosure” of failing to pay the mortgage and attend the process.
The Act 91 Notice provides Pennsylvania residents with information on Homeowners Emergency Mortgage Assistance Programs offering financial aid or support to the borrower.
Foreclosure Protection for Residents of Pennsylvania
There are mechanisms in Pennsylvania to protect against foreclosure. A seasoned attorney can help as you navigate through the process. There are ways homes can be preserved or, at the very least, there are ways to mitigate losses as much as possible. For example, the Loan Interest & Protection Law prohibits usurious practices such as charging interests over 6%. The Homeowners Emergency Assistance (HEA) is specifically designed to prevent aggressive foreclosure practices. HAE gives Pennsylvania residents opportunities to seek financial assistance, to elect mediation, as well as the benefits of programs created to prevent foreclosures.
Foreclosure Mediation in Montgomery County, PA
Montgomery County has instituted a foreclosure mediation or conciliatory program for Homeowners of properties with a total debt of $300,000 or less. This program is restricted to owner-occupied residences and properties that are not subject to bankruptcy, estates or divorce proceedings. The principal goal of this program is for the lender and borrower to agree on a payment plan or loan modification.
Montgomery county residents who choose mediation will receive an automatic stay or halt to the foreclosure proceedings. This break in the foreclosure proceedings is effective until a conference takes place. At the conference, homeowners will have an opportunity to speak with housing counselors and legal aid attorneys, and the lender or lenders’ representatives. If the Homeowner has not been served with the foreclosure summons and complaint, the conference will be continued for approximately 45 days to allow for service of the complaint.
Answering the Foreclosure Complaint
The foreclosure complaint is the official document where the foreclosing lender asks the court to approve a judicial sale of the property. A defendant has a term of 20 days to answer the foreclosure complaint.
Default is entered if the complaint is left unanswered. If no answer is furnished with the 20-days, the borrower will receive a 10-day notice stating that failure to answer will result in a default judgment. There must be a 30-day notice before the foreclosure sale occurs. The answer is where the borrower raises defenses and answers all the allegations the lender makes in the foreclosure complaint. The answer gives borrowers an opportunity to admit or deny allegations. These responses have to be based on important facts and issues of law. The defenses can be issues of mixed law and fact alleging the lender either caused or contributed to the foreclosure or
What Happens If I Fail to Answer the Foreclosure Complaint?
Answering the complaint can help protect important rights. The lender can file what is known as a “motion for summary judgment” if you fail to answer the complaint. The motion for summary judgment is a request for the judge to sign off on the foreclosure sale asserting there are no issues or questions that need answers warranting a prolonged dispute. The trial is typically scheduled if the lender’s summary judgment request is denied.
Notice of Sale
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.
The Foreclosure Sale
Properties in Pennsylvania are sold to the highest non-party bidder or revert back to the foreclosing lender. You are required to leave or vacate the property.
If you lose your home in Pennsylvania to foreclosure or judicial sale, there is no statutory recourse to get the house back. Some states give people what is called the right to redeem or recover the home shortly after the foreclosure. But in Pennsylvania doesn’t have a right to reclaim the property. In addition, Pennsylvania allows the lending bank to pursue a legal case against the borrower if the sale doesn’t satisfy the debt I full.
In Pennsylvania, you may be responsible for the shortfall owed to the bank if the foreclosure sale amount is less than the loan amount. This means the borrower owes the difference between the amount of the original loan and the price sold auction. However, the deficiency cannot exceed the fair market value of the property. These actions have to be presented within six months of the foreclosure sale.
Our Montgomery County Foreclosure Attorneys Can Help to Protect Your Home
It’s important to consult with a knowledgeable and experienced foreclosure lawyer assert your important legal rights. Foreclosure actions can be extremely overwhelming and there are a lot of mistakes and unjust actions that can be missed without the help of an experienced professional. The attorneys of Young, Marr & Associates can help you make an informed and financially sound decision. Call us at (215) 701-6519 to schedule a free consultation or contact us online.
☑ Been paying credit card balances that seem to never go down?
☑ Lost your job and are now having trouble keeping up?
☑ Attempted to work out a payment arrangement to no avail?
☑ Been notified of a mortgage foreclosure action?
☑ Been denied for a mortgage or other line of credit?
If the answer to any of these questions is “yes” then bankruptcy may be an option that you should consider.