Yardley, PA Mortgage Foreclosure Defense Lawyer
Keeping up with mortgage payments is a key element of your mortgage agreement. Falling behind might lead to the mortgage lender foreclosing and seizing your home.
The foreclosure process must adhere to formal legal procedures, beginning with a formal notice from the mortgage lender. Once you have been notified, contact an attorney immediately. Your mortgage might be foreclosed upon for various reasons, but perhaps the most common is nonpayment. A lawyer can help you find the best way to fight the foreclosure so you can hopefully hold on to your property. You might work out a forbearance agreement, litigate the matter in court, or file for bankruptcy, among other possibilities.
Call us at (215) 701-6519 to talk to our mortgage foreclosure defense lawyers at Young, Marr, Mallis & Associates in a free case review.
How You Should be Notified of a Foreclosure in Yardley, PA
The bank or whomever the lender on your mortgage is cannot just up and foreclose without telling you. The lender is legally required to serve notice under 231 Pa. Code Rule § 410. Under the law, formal notice must be served or delivered to the parties named in the mortgage, but also any parties not named in the mortgage who are in possession of the property. This might mean you and anyone else living in your home should be served with notice of the impending foreclosure.
According to Pennsylvania’s Usury Law, a lender must give notice of their intent to initiate foreclosure on a residential property at least 30 days in advance. The notice must be in writing and should be mailed to your last known address by certified mail. Notice in person or over the phone might not be enough. Contact our mortgage foreclosure defense lawyers immediately after receiving notice of foreclosure.
What happens next depends on your answer to the notice. The lender might be open to other arrangements, like a payment plan, or agree to give you a little extra time if you are close to getting the money you need to catch up on your missed payments. Foreclosure proceedings may commence if you do not answer the notice or cannot come up with a solution the lender agrees with.
Why Your Mortgage Might be Foreclosed in Yardley, PA
For many borrowers, mortgage foreclosure happens when they fall behind on payments. Missing one or even a couple of payments is often not enough for the lender to initiate foreclosure proceedings. Under federal law, a borrower can foreclose on your mortgage only under very specific conditions.
First, a lender can only foreclose on a mortgage if the borrower is more than 120 days late with a payment. One or two late payments might be a problem but should not trigger foreclosure.
Second, the lender could foreclose if the borrower violated a due-on-sale clause. A due-on-sale clause, also called an alienation clause, is a term in the mortgage agreement that requires borrowers to fully pay their loan balance upon transfer or sale of the property title before a new party can take ownership.
Third, a lender can foreclose a mortgage if they are joining an action of a subordinate or superior lienholder. This means another party with a claim to your property has filed a legal action to seize the property, and your lender could foreclose to avoid losses.
While unpaid debts are a common reason behind foreclosures, they are far from the only reason. Talk to our mortgage foreclosure defense lawyers about your case to determine the best way to fight foreclosure.
Ways to Avoid a Mortgage Foreclosure in Yardley, PA
Dealing with foreclosure on your own can be extremely difficult and emotionally draining. Our mortgage foreclosure defense attorneys can help you fight foreclosure so you and your family can continue living in your home.
Working Out a Forbearance Agreement with the Lender
One option that could help you avoid foreclosure is a forbearance agreement with the lender. A forbearance agreement is a deal worked out with the lender to put your mortgage payments on pause for a certain amount of time. How long your payments on put on hold depends on the terms of the forbearance agreement.
You should note that a forbearance agreement does not wipe out or forgive you of any debts. For example, if the forbearance period lasts 6 months, you must eventually repay those 6 months’ worth of mortgage payments.
Challenging the Legality of the Foreclosure
Sometimes, foreclosure is not exactly justified or lawful. It is possible that the lender made a mistake when they initiated foreclosure proceedings. For example, perhaps you are not quite yet 120 days behind on payments, but the lender made a mistake when reviewing your case.
Unfortunately, not all lenders and banks play fair. Perhaps your mortgage agreement was written in such a way as to ensure your failure to pay. This way, the bank gets your money and the house, leaving you with nothing. Our mortgage foreclosure defense attorneys can help you fight to protect yourself from unlawful, predatory loan practices.
Filing for Bankruptcy
Bankruptcy is often regarded as a punishment for those who have made poor financial decisions, but this could not be further from the truth. Filing for bankruptcy could help you avoid foreclosure and keep your home and other assets. Various bankruptcy chapters are available under federal law, but Chapter 13 bankruptcy is a good option for those who want to avoid foreclosure and keep their home.
Under Chapter 13, you can file for bankruptcy and work with an attorney to reorganize your debts and finances. Other forms of bankruptcy focus on liquidating your assets (e.g., your home) and using the proceeds to pay off debts. Under Chapter 13, your home and other assets are not liquidated, but you can work out a payment plan with the bank and, over time, pay off your debts.
Call Our Yardley, PA Mortgage Foreclosure Defense Attorneys for Help
Call Young, Marr, Mallis & Associates at (215) 701-6519 for a free case evaluation with our mortgage foreclosure defense attorneys.