Pottstown, PA Mortgage Foreclosure Defense Lawyer
When homeowners are served with mortgage foreclosure lawsuits in in Pottstown, they might feel as though they have already lost. In reality, foreclosure is not guaranteed, even if your bank has filed a petition with the court.
There is not just one reason by mortgage foreclosure takes place in Pottstown. Any number of things, from job loss to divorce, could cause someone to become delinquent and vulnerable to foreclosure. Regardless of the reason for your difficult situation, there are ways to address foreclosure and stop it. If your case goes to court, you can defend your position by showing how your lender acted irresponsibly when giving you your mortgage. Declaring bankruptcy is also a viable way to address mortgage foreclosure. When you file, you can benefit from an automatic stay, which will stop any attempts to repossess your property in Pottstown, including sheriff’s sales.
To have the attorneys at Young, Marr, Mallis & Associates analyze your case for free, call (215) 701-6519 and speak with our Pottstown, PA mortgage foreclosure defense lawyers today.
Reasons Why Mortgage Foreclosure Happens in Pottstown, PA
Mortgage foreclosure can happen for any number of reasons. Losing one’s job, going through a divorce, or experiencing an expensive medical emergency can all lead to the same result: a borrower has become delinquent in their mortgage payments, and the bank has decided to repossess the property and sell it to another buyer.
When you have a mortgage, you are essentially renting your house from the bank for several decades. You pay off your house via monthly payments. You may pay property taxes, maintain your residence, and cut the grass, but your house is not totally yours. If you fall behind on your mortgage payments, the bank can take your home from you in Pottstown.
This typically only happens once a homeowner has been delinquent for 120 days. That is about a few months of not paying one’s mortgage. You might be unable to make your mortgage payments because of a recent major life event, such as a serious medical issue, job loss, death in the family, or divorce. Although paying off your mortgage each month should be a top priority, it might fall to the wayside when other things or expenses in your life take precedence.
Another reason mortgage foreclosures happen is because borrowers were never able to make their payments to begin with. Predatory lenders might do this intentionally so that they can foreclose upon a property and make a profit from the sale. If you believe this is the cause of your issues, tell our mortgage foreclosure defense lawyers immediately. Hardships due to predatory lending can cause banks to be unable to foreclose upon a property in Pottstown.
Going to Court Over Mortgage Foreclosure in Pottstown, PA
In Pennsylvania, all mortgage foreclosures must go through the court. This means that if negotiations during mediation with a lender are unsuccessful, you might have to take your case before a judge in Pottstown.
If a lender is determined to repossess your property, they might proceed with a mortgage foreclosure claim. Before this happens, you will receive a notice of intent to foreclose in the mail. This will be sent about a month before the foreclosure claim is filed with the court. During these 30 days, our lawyers can attempt to negotiate with your bank to settle the matter and rearrange your mortgage agreement so that foreclosure is unnecessary. Not all lenders are open to negotiations.
Even if your lender ignores your attempts to negotiate prior to their filing of a mortgage foreclosure complaint, the judge assigned to your case will likely require mediation to take place. If negotiations fail once more, you may have to defend your case in court.
There are several defenses to mortgage foreclosure that homeowners can use to get a claim dismissed. For example, there are federal and state laws in place that protect certain homeowners facing mortgage foreclosure in Pottstown. If your case goes to court, that is not a guarantee that you will lose your home. To build your defense, our lawyers will look into your initial mortgage agreement, compare it to your income at the time, and review the lending practices of your bank to confirm whether or not it acted in a predatory fashion when giving you your loan.
Stopping the Sale of a Foreclosed Property in Pottstown, PA
When homeowners do not take threats of foreclosure seriously, their homes might go up for auction in Pottstown. Should this happen to you, there is still time for you to stop the process and ensure your house is not sold.
If an uncontested foreclosure takes place, meaning a homeowner does not respond to a notice of intent to foreclose or a foreclosure petition filed by their lender, a sheriff’s sale will follow. An auction will also take place if a homeowner loses their mortgage foreclosure case in court. When a sheriff’s sale happens, the bank will sell the borrower’s home to the highest bidder. If your house is sold at auction, you will not be able to regain ownership of it.
Even if an auction of your property is impending, you still have options. Filing for bankruptcy will result in an automatic stay. This means any attempts to collect your debts from creditors, including mortgage lenders, must stop. This will delay the sale of your home indefinitely until your bankruptcy is discharged. If you have to file Chapter 7, which requires asset liquidation, our lawyers can help you use federal exemptions so that your home will not be liquidated. Once your bankruptcy is complete, you will not owe any money to your lender, apart from future mortgage payments, meaning you can keep your home in Pottstown.
Contact Our Pottstown, PA Attorneys to Stop Mortgage Foreclosure Today
You can call our mortgage foreclosure defense lawyers at (215) 701-6519 to schedule a free evaluation of your case from Young, Marr, Mallis & Associates.