Facing Foreclosure on Out-of-State Property
If you fall too far behind on your mortgage payments, you’re at risk of losing your home to foreclosure. But what happens when you own a remote property out of state? Is the procedure the same? And is there anything you can do to reverse it? If you’re struggling with mortgage payments or other financial matters, call the experienced Philadelphia bankruptcy attorneys at Young, Marr, Mallis & Associates today.
The Foreclosure Process
Foreclosure is a potential outcome of missing multiple mortgage payments. While foreclosure itself is a frightening prospect, the good news is that it’s not an overnight loss. It’s a multi-step process that takes time, which gives a property owner some leeway to restore financial losses.
Typically, the first warning comes in the form of missed payment notices from your bank, which are often padded with short grace periods. Next comes a notice of default (NOD), which you might receive after a time period of approximately 30 days without payment. The NOD will tell you the period of time which you have to cure the default, before the bank takes further measures — like foreclosure.
Only after these preliminary warnings, and failure or inability to heed them, will you receive the actual foreclosure notice itself. The foreclosure notice includes information like the amount of money owed to the bank, interest, and attorney information. Once the notice has been received and bidding on the property has been initiated, it will go to the highest bidder (in some cases the bank itself), and you will have to move out or face eviction.
State Foreclosure Laws
Foreclosures on out-of-state properties can be divided into two groups, which vary by state: judicial (which use mortgages) and non-judicial (which use deeds of trust). In Pennsylvania, foreclosures are judicial, with one of the longest process periods in the country at 270 days. In judicial foreclosures, court action is required, which means you will receive a summons, and your foreclosure will take place in court.
If your primary home in Pennsylvania is being foreclosed on, and you have a secondary home in State B, the secondary home counts as a non-exempt asset. This means the debtor, you, may have to relinquish the property to the lender. Whether or not the secondary home will also be foreclosed on is a matter of cost versus benefit — that is, is the secondary property worth enough to justify moving against?
Pennsylvania Bankruptcy Attorneys Offering Free Consultations
Filing for bankruptcy can function as a defense against loss of property. If you are facing foreclosure on your home, contact Young, Marr, Mallis & Associates today. Our bankruptcy attorneys will explore your financial options with care and compassion, and determine whether filing for bankruptcy might be a viable option for you and your unique situation. Call (609) 755-3115 in New Jersey or (215) 701-6519 in Pennsylvania right away.