Norristown Mortgage Foreclosure Defense Lawyer
Foreclosure is a process where lenders will repossess homes from borrowers who fail to make their mortgage payments. It can be highly traumatic and stressful for those whose homes are being foreclosed upon. Thankfully, there are ways to slow down or stop this process.
For example, you may be able to avoid foreclosure if there are defects in the procedures implemented by your mortgage company. Also, you may be able to prevent foreclosure by declaring bankruptcy. You can determine the appropriate course of action in your case by consulting with our legal team.
Get help from our mortgage foreclosure defense lawyers at Young, Marr, Mallis & Associates by calling (215) 701-6519.
How Does The Foreclosure Process Work in Norristown, PA?
In Pennsylvania, the foreclosure process is initiated once you have fallen behind on your mortgage payments for at least 60 days. Before it begins, the lender will have to send you two letters through the mail to let you know of their intent to commence foreclosure. After receiving such a notice, you may have somewhere between two to four months to find a way to avoid foreclosure or stop the proceeding. You can determine the appropriate course of action with guidance from our mortgage foreclosure defense attorneys.
If you do not find a resolution, the lender may file a lawsuit against you seeking monetary damages for the amount you owe. This is referred to as a judicial foreclosure proceeding. If the lender secures a favorable final judgement from the court, then your property may be listed for sale at a foreclosure auction.
After your property is sold at a foreclosure auction, you will lose all of your property rights. In other states, there is a right of redemption period where you may regain ownership of your home even after it is sold. However, no such right exists in Pennsylvania. Instead, borrowers will only be able to reinstate ownership of their homes up until one hour before the foreclosure auction begins.
How Can Bankruptcy Prevent Foreclosure in Norristown, PA?
In Pennsylvania, you may be able to prevent foreclosure on your home by filing for bankruptcy. There are two main types of bankruptcy that you can file for, Chapter 7 and Chapter 13. Each of them will have a different impact on your case.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is designed to be a quick and efficient way to get rid of debt. It is intended for those who are having trouble maintaining steady employment and may not produce enough income to pay their debts. After filing for Chapter 7 bankruptcy, you must turn over property to be sold by a court-appointed trustee. The proceeds will be used to pay off your debts.
When you file for Chapter 7 bankruptcy, the foreclosure process will be temporarily stopped. It may allow you time to catch up on your mortgage payments or submit a mortgage modification to your loan company.
Chapter 13 Bankruptcy
You may also be able to prevent foreclosure on your home by filing for Chapter 13 bankruptcy. This type of bankruptcy is designed for people who produce steady income but are still unable to keep up with their debts. When you file for this form of bankruptcy, your debts will not be absolved. Instead, you will be afforded a certain amount of time to create a court-approved repayment plan.
As long as you make payments on-time according to your repayment plan, then your home will not be foreclosed upon. Still, filing for Chapter 13 bankruptcy can be challenging. You must have enough disposable income to fund your repayment plan which can last anywhere from three to five years. If you do not have enough disposable income, then you may have to look into filing for Chapter 7 bankruptcy instead.
Other Ways to Prevent Foreclosure in Norristown, PA
Other than filing for bankruptcy, there are multiple other ways to prevent foreclosure on your home in Pennsylvania. As previously mentioned, you may be able to negotiate a mortgage modification with your lender. A mortgage modification may help your case in several ways. It may wipe out a portion of the principal, lower your interest rates, or extend your payment period. However, negotiation a favorable modification can be difficult without support from experienced legal representation.
Another way to prevent foreclosure is by entering into a forbearance agreement. Rather than alter the provisions of your loan, a forbearance agreement will temporarily delay payments. Typically, this period will last up for a period of time up to six months. Accordingly, a forbearance agreement is only a quick fix that may allow you time to create a long-term plan.
You may also be able to avoid foreclosure by successfully negotiating a short sale. When a short sale occurs, a lender accepts a certain amount of compensation that is lower than the actual worth of the property at issue.
Finally, you may be able to prevent foreclosure by proving that your lender made procedural mistakes or engaged in other forms of inappropriate conduct. In such cases, you may have to fight your mortgage lender in court to ensure that you are not taken advantage of.
What is The Homeowners Emergency Mortgage Assistance Program?
The Homeowners Emergency Mortgage Assistance Program (HEMAP) was established by the state of Pennsylvania to issue mortgage assistance loans. The program can loan up to $60,000 to qualifying homeowners. Still, homeowners are expected to pay up to 40% of their monthly income to HEMAP. These loans can las up to 36 months following mortgage delinquency.
If you have fallen behind your mortgage payments, HEMAP could help save your home. After receiving notice that you are facing foreclosure, you should investigate whether this program is right for you.
If Your Home is Being Foreclosed Upon in Norristown, Call Our Law Firm for Help
After receiving notice of a lender’s intent to foreclose, seek support from our mortgage foreclosure defense attorneys at Young, Marr, Mallis & Associates by calling (215) 701-6519.