How to Answer a Foreclosure Notice in Philadelphia
If you don’t respond properly to a foreclosure notice, your lenders may get a default judgement and take your home. We know what lenders need to hear after sending foreclosure notices or filing complaints, and can help you respond to news of a possible foreclosure.
We can respond to a foreclosure notice by contacting your lender about a loan modification. Not all lenders are open to modifying current loans, especially if the borrower has fallen very far behind. If the lender follows the foreclosure letter with a foreclosure complaint, we can file an answer on your behalf, addressing each aspect of the lender’s complaint. For many homeowners, the best way to stop foreclosure is to file for bankruptcy, and we can oversee your case.
For a free and confidential case evaluation from our Philadelphia foreclosure defense attorneys, call Young, Marr, Mallis & Associates now at 215-639-5297.
How Do You Respond to a Foreclosure Notice Letter in Philadelphia?
When homeowners default in Pennsylvania, lenders must inform them of their intent to foreclose, typically by sending them an Act 91 notice of foreclosure letter. Promptly responding to an Act 91 foreclosure notice is crucial, as the bank may move forward with foreclosure after about 30 days.
Read the Notice
First, you should carefully read the notice from your lender with our attorneys. The notice will state that you are at least 3 months delinquent on your mortgage and that you are at risk of foreclosure if you cannot make the outstanding payments soon. It will also have information about potential state-funded assistance that we can see if you qualify for.
The notice may even warn of the earliest possible sheriff’s sale of your property if you don’t stop foreclosure.
Review Mortgage Documents
To respond appropriately to a foreclosure notice, we must review all of your mortgage documents. These documents provide more information about your monthly mortgage payments, your income at the time of approval, interest rates, the total loan amount, the loan term, and more. The mortgage documents may even reveal predatory lending, which we can use to prevent foreclosure.
Apply for HEMAP Assistance
Suppose you qualify for help through the Homeowners’ Emergency Mortgage Assistance Program (HEMAP). If you cannot “cure” your mortgage or make all outstanding payments through no fault of your own, HEMAP may help. You have 33 days from receiving the notice to have a face-to-face meeting with an HEMAP-approved consumer credit counseling agency in Philadelphia.
Negotiate with Lender
An Act 91 notice tells you that your lender intends to file an official foreclosure complaint against you within the coming weeks or months if you cannot catch up. Lenders may send this letter as soon as they can after borrowers default, but they may still be open to renegotiating mortgage contracts. Avoiding a foreclosure case saves your lender time and resources, too, which they often prefer.
When we negotiate with lenders, we suggest new arrangements that are more feasible for you, but that your lender can be happy with. For example, we may propose extending the loan term to achieve more affordable monthly payments.
File for Bankruptcy
Suppose you do not qualify for HEMAP assistance or your lender refuses to renegotiate the mortgage. In that case, we may advise you to respond to a foreclosure notice by filing for bankruptcy in Philadelphia. When you file your bankruptcy claim, any attempts to collect debt must cease, including foreclosure cases.
How Do You Answer a Foreclosure Complaint in Philadelphia?
You respond to a foreclosure notice or a complaint filed against you by filing an official answer with the court yourself.
Party Information
When drafting an answer to a foreclosure notice, our Pennsylvania foreclosure defense attorneys will include both the defendant’s and plaintiff’s information. In this type of case, the homeowner would be the defendant, and the mortgage lender would be the plaintiff.
Address Complaints
We must then respond to each paragraph of the complaint filed by the plaintiff. In an answer, the defendant may admit to a specific issue raised, admit and deny it in part, deny it, or deny it because they do not have enough information.
New Matter
The final “new matter” section of an answer to a foreclosure complaint is where our lawyers can present the affirmative defense we plan to use in the foreclosure case, such as predatory lending. If a lender took advantage of you when initially providing your mortgage loan and you have since defaulted, the judge may decide the lender cannot move forward with foreclosure.
FAQs About Answering a Foreclosure Notice in Philadelphia
What if You Ignore an Act 91 Notice of Foreclosure
Ignoring an Act 91 notice of foreclosure eliminates any potential for negotiating new mortgage terms with your lender. Instead, it may move forward with filing an official foreclosure complaint in court as soon as possible.
How Long Do You Have to Answer an Official Foreclosure Complaint?
You have only 20 days to respond to an official foreclosure complaint filed in court by your lender. If you do not answer within that timeframe, the judge may enter a default judgment against you, and the lender may proceed with foreclosure.
What Chapter of Bankruptcy is the Best Answer to a Foreclosure Notice?
Chapter 13 bankruptcy is better for addressing non-dischargeable debts, such as outstanding mortgage payments. You do not have to liquidate assets during Chapter 13 bankruptcy, but you do if you file Chapter 7 bankruptcy in Philadelphia. There isn’t a specific homestead exemption for Chapter 7 bankruptcy filers in Philadelphia, who may end up losing their homes through liquidation to repay lenders.
Call Our Philadelphia Lawyers for Help with a Foreclosure Case
Call the Allentown, PA foreclosure defense attorneys of Young, Marr, Mallis & Associates at 215-639-5297 for a free case assessment.