Can You Sell Your House if it’s in Foreclosure in Pennsylvania?
When foreclosure is imminent, selling your house might seem like a fine solution. But can you sell your house if it is in foreclosure in Pennsylvania?
You may be able to sell your house if you are facing foreclosure in Pennsylvania, provided the process of the sheriff’s sale has not yet begun. While that is an option, debtors that want to keep their properties and address their debts can do so by filing for bankruptcy. When you do this, you can protect your home from foreclosure and liquidation while repaying lenders. If, after exiting bankruptcy, you fall behind on your mortgage payments again, you might have more difficulty keeping your house, as debtors can only file for bankruptcy periodically in Pennsylvania.
To have our Pennsylvania foreclosure lawyers assess your case for free, call Young, Marr, Mallis & Associates at (215) 701-6519 today.
Can I Sell My House if I am Facing Foreclosure in Pennsylvania?
Suppose you have fallen behind on mortgage payments and received a foreclosure notice from your lender in Pennsylvania. In that case, it is important to consider all of the options in front of you to rectify the situation. For some, that might include selling their house.
Generally, banks allow homeowners about six months of missed mortgage payments before threatening foreclosure in Pennsylvania. If you cannot make up all of your missed payments in one lump sum or negotiate with your lender to allow you to keep your house, selling your home might be an option. That said, homeowners will only have a short period of time to decide whether or not they want to sell their homes when faced with foreclosure.
Once your home has gone up for auction, you will not be able to sell it yourself. That is because your home will no longer be yours; it will be your lender’s. If you do not want to sell your house and want another solution to foreclosure, you still have options in Pennsylvania, like filing for bankruptcy.
Do I Have to Sell My Home if it is in Foreclosure in Pennsylvania?
While selling your house might allow you to avoid foreclosure and possibly get some money from the sale after paying back lenders, it also leaves you without your home. Fortunately, homeowners in Pennsylvania do not have to sell their properties in order to avoid foreclosure.
Bankruptcy can stop foreclosure proceedings. When our Philadelphia bankruptcy lawyers file your case, an automatic stay will take effect. This will stop any impending sheriff’s sale and the entire foreclosure process. When debtors declare bankruptcy, they do not have to sell their homes or worry about any immediate attempts from lenders to seize their properties.
This can provide you with the temporary relief you need to get your financial affairs in order. After reviewing your financial information, our attorneys might find that negotiating with lenders to reevaluate your mortgage might allow you to meet newly adjusted mortgage payments, eliminating the need for a sheriff’s sale or for you to sell your home yourself.
If you do not file for bankruptcy and refuse to sell your home, it may be foreclosed upon in Pennsylvania. This means it could be sold at auction, leaving you with no claim over it. Pennsylvania does not have a right of redemption, meaning homeowners cannot redeem or buy their properties back once they are sold at auction.
Will My Home Be Sold During Bankruptcy in Pennsylvania?
For many debtors, especially ones who have defaulted on their mortgages, Chapter 7 is the type of bankruptcy they must file. Because Chapter 7 requires asset liquidation, homeowners might be concerned that by declaring Chapter 7 bankruptcy, they might risk losing their homes anyway.
Our attorneys can protect your home during Chapter 7 bankruptcy by using liquidation exemptions. If you do not use liquidation exemptions, your mortgage debt might be discharged, but you could also lose your home in the process. Pennsylvania does not provide a specific homestead exemption for homeowners to use during Chapter 7. However, Pennsylvania does allow debtors and homeowners to use federal liquidation exemptions, which typically cover more assets.
If you use liquidation exemptions correctly, you should be able to retain your home during Chapter 7 bankruptcy. Other assets may need to be liquidated to resolve your mortgage debt with your lender. If you file Chapter 13, you will not have to worry about liquidation exemptions at all, nor be concerned about your home being sold without your consent. In Chapter 13 bankruptcy cases, debtors repay creditors and lenders over time. All debts are consolidated under the same interest rate, which is generally low, making repayment more achievable for debtors.
What Happens to My Home After Bankruptcy in Pennsylvania?
Once the bankruptcy process is complete, you should no longer be in mortgage debt. That does not mean that your mortgage will be paid in full. In order to continue protecting your home from foreclosure, meeting future mortgage payment dates is important.
In bankruptcy, outstanding mortgage payments are addressed. However, chances are, you will have to continue paying off your mortgage for some time after you exit bankruptcy. Doing this is crucial. If you fall behind on your mortgage payments again, you might risk entering foreclosure again. This time, you might not be granted an automatic stay because you filed for bankruptcy in the past. It is also important to note that debtors must wait a set period of time between bankruptcy filings in Pennsylvania. Because of this, prioritizing your mortgage payments after bankruptcy is important so that you do not risk losing your home or facing the decision of having to sell your house again.
Call Our Pennsylvania Lawyers About Your Bankruptcy Case Today
Young, Marr, Mallis & Associates give you a free case evaluation when you call our Northeast Philadelphia bankruptcy lawyers today at (215) 701-6519.