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Phoenixville, PA Mortgage Foreclosure Defense Lawyer

Nobody wants to go through foreclosure proceedings on their property. For many, a home represents years, if not decades, of incredibly hard work to get to that point. It can be incredibly distressing, maddening, or upsetting to face the prospect of all that effort going away in an instant. For those reasons and more, the prospect of foreclosure can loom large in people’s minds and cause a lot of stress and anxiety.

Fortunately, there are options available to you. Our lawyers have handled many foreclosure cases, so we have the experience to figure out the best options for your situation, the drive to fight hard for you against less-than-nice creditors, and the compassion to help you through this tough time so that you can have a positive outcome to a potential foreclosure.

Start getting help from our foreclosure defense lawyers by calling Young, Marr, Mallis & Associates at (215) 701-6519.

What is Foreclosure in Phoenixville, PA?

Foreclosure is the act by which a mortgagor – an entity that gives out mortgages – repossesses the mortgagee’s – the entity subject to the mortgage – property in order to pay outstanding debt. Foreclosure cannot happen until the mortgagee misses a payment, at which point the mortgagor has to notify the mortgagee within a certain period of time. If enough time passes after that point, the mortgagor can initiate foreclosure proceedings in a manner similar to how a civil lawsuit is filed in court. You are able to respond to this foreclosure request and argue that it should not happen, but you will have to go to court to do so. If you do not show up to contest a foreclosure, the court will automatically rule in favor of the mortgagor, and foreclosure proceedings will begin.

How to Prevent Foreclosure in Phoenixville, PA

If you are looking to prevent or stop foreclosure from happening to your property, there are a couple of different options available to you. The best option for your property may be different than the best option for someone else’s, so it is always a good idea to consult with our mortgage foreclosure defense attorneys before deciding on a particular course of action.

Mortgage Restructuring

Restructuring your mortgage is a potential option for preventing foreclosure from occurring. The idea is to have a “workout” with your lender so that you can change the payment schedule to better fit your current situation. Generally, making mortgage payments easier to make lengthens the term of the mortgage, but doing so can be better in the long run in some circumstances.

Depending on how you go about working out the mortgage with your lender, there could be potential tax consequences. Any forgiven debt is treated as income, so there may be undesirable tax consequences that make working out a mortgage a bad idea for either you or the lender. Alternatively, the lender could simply not be interested in working things out, at which point you will have to try another option.

Bankruptcy

If you file bankruptcy, all debt collection efforts against you must stop immediately. Since foreclosure is a form of debt collection, you cannot be foreclosed while you are in bankruptcy.

Although bankruptcy stops foreclosure, it has other consequences that could still result in the loss of significant assets, potentially including the same property you wished to protect from foreclosure. The things you are able to keep off limits will vary depending on the Chapter of bankruptcy you file under, so you should talk with our attorneys to figure out which Chapter of bankruptcy, if any, is right for you.

Contest it in Court

Finally, you can contest foreclosure proceedings in court in a similar manner to how you would contest any other kind of civil claim.

How Will I Know Foreclosure is Coming in Phoenixville, PA

Foreclosure proceedings are very obviously telegraphed if you know where to look. There are a number of things that need to happen before a lender can initiate foreclosure, so having some familiarity with these things can help you predict when you may be getting foreclosed on and when you need legal counsel.

First Missed Payment

Under 12 C.F.R § 1024.39, lenders must notify you within 45 days of your first missed mortgage payment. In addition to notifying you that you missed a payment, the lender also has to inform you of things you can do to fix the situation, like work out your mortgage and find other ways to “cure” the issue. If you are able to get the payment in within the “cure period,” the lender will not be able to initiate foreclosure.

Other Missed Payment Notices

Unlike with the first missed payment, creditors are under no obligation to let you know about subsequent missed payments. They have the option to tell you within 45 days of additional missed payments, but many choose not to, especially if they want to initiate foreclosure in the first place. Make sure you are up to date on communications with your creditors so that you do not miss a notice of missed payment.

Foreclosure

120 days after the first missed payment under the mortgage, the creditor is allowed to initiate foreclosure. Remember, creditors, are under no obligation to let you know about the steps they are taking after the first notification, so they may just go to the courthouse and ask the judge to initiate foreclosure without telling you what is going on. However, you will find out when you are served with legal papers stating that you are being foreclosed. Once you get served with those papers, you need to get legal counsel right away.