Reading, PA Mortgage Foreclosure Defense Lawyer

Your home is your castle, and you would do anything to protect it. If you are falling behind on mortgage payments, talk to a lawyer about how you can keep your home while tackling your debt problems.

When someone falls too far behind on mortgage payments, their house might be at risk. Creditors, often a bank, might initiate foreclosure proceedings to seize your home and auction it off to cover your debt. If you have been warned about foreclosure by a creditor or believe it is in your future, talk to our legal team about how to fight it. If creditors do not follow strict legal rules regarding how to initiate foreclosure proceedings, we might be able to halt the foreclosure. Another possible solution is bankruptcy. While people often think of bankruptcy as a last resort, it can help you wipe out debts and get back on track to paying your mortgage and keeping your home.

Get a free, confidential case assessment by calling Young, Marr, Mallis & Associates at (215) 701-6519 and speaking to our mortgage foreclosure defense lawyers.

What Happens When a Person Falls Too Far Behind on Mortgage Payments in Reading, PA?

Falling behind on mortgage payments is perhaps every homeowner’s nightmare. Missing a payment might put you in fear of having your home taken away by the bank. While your creditor can initiate foreclosure proceedings if you stop making payments, there are strict laws about how and when this kind of thing can be done.

Bankruptcy is largely a federal matter, so federal law governs how mortgage foreclosure can occur. According to 12 C.F.R. § 1024.40(f), a creditor or loan servicer may not make the first notice to initiate foreclosure unless one of the following specific conditions are met.

First, a creditor or loan servicer may begin the foreclosure process if the borrower is more than 120 days late with payment. Missing only one or two mortgage payments might warrant a phone call from the bank, but they are unlikely to try and begin foreclosure proceedings. Second, a loan servicer can serve you notice of their intent to foreclose if you violate a due-on-sale clause. This clause gives creditors and loan servicers the right to payment in full if the borrower sells the property. Finally, a creditor may join a foreclosure action already in progress of a superior or subordinate lienholder.

If you believe that foreclosure might be on the horizon, contact an attorney for help. Our mortgage foreclosure defense lawyers can make sure that the creditors in your case do not try to foreclose prematurely or in violation of your rights as the borrower.

How to Fight a Foreclosure on Your Home in Reading, PA with a Mortgage Foreclosure Defense Lawyer

One way our mortgage foreclosure defense lawyer can help you fight a foreclosure is to challenge the legitimacy of the foreclosure proceedings. There are very strict laws regarding when and how a creditor may initiate foreclosure proceedings. If they do so against the law, we can try to stop it.

Maybe your creditor has tried to initiate foreclosure proceedings too early. Remember, a creditor cannot send you the first notice of the foreclosure until you are at least 120 days past due on your mortgage. If you have missed only one or two payments and suddenly your creditors threaten you with foreclosure proceedings, call our team for help immediately.

Maybe your creditor did not properly notify you of the foreclosure. In Pennsylvania, under § 403(a) of the Loan Interest and Protection Law, creditors must send you 30 days advanced notice of their intent to foreclose. They must also give you this time to cure the default if you are able.

Another tactic is negotiating with creditors to give you more time to catch up on past-due payments. While creditors might be legally allowed to foreclose, they do not have to. Creditors would often rather just obtain the payment they are owed so you can get back on track to paying your mortgage. Depending on the situation, we might be able to work out an agreement with creditors so you have a bit more time to catch up.

How Bankruptcy Might Help You Face a Mortgage Foreclosure in Reading, PA

Another possible strategy to combat an impending foreclosure is to file for bankruptcy. While this might sound like an extreme idea – most people would rather avoid bankruptcy altogether – it might be the solution to your financial problems.

When you file for bankruptcy, the court imposes an automatic stay on legal proceedings that are pending or might be filed against you. This means that if your creditors are trying to foreclose on your home, foreclosure proceedings must halt immediately. This gives you more time to get your finances together so you can hopefully keep your home.

How you file for bankruptcy determines what kind of financial relief you might get. If you file for Chapter 7 bankruptcy, your property might be liquidated to help pay your debts. After liquidation, the remaining debts might be discharged by the court. When debts are discharged, you are no longer liable for paying them. Chapter 7 might not be ideal for someone who wants to hold onto their home and avoid foreclosure, as your home might be sold off.

If you file for Chapter 13 bankruptcy, you and your attorney must devise an aggressive yet feasible payment plan to tackle your various debts, including your mortgage. Creditors have the opportunity to review your plan and possibly object, although this does not always happen. Payment plans tend to last for a few years, and it is crucial that you keep up with the plan if you want to hold on to your property.

Our Reading, PA Mortgage Foreclosure Defense Lawyers Are Available to Review Your Case

Call Young, Marr, Mallis & Associates at (215) 701-6519 and speak to our mortgage foreclosure defense lawyers for a free, confidential case assessment.