A foreclosure in Pennsylvania can be a scary process. If you are worried about facing a foreclosure or are currently in the process, it’s important that you understand the process and know what your rights are. It’s also important that you learn about what your options are to avoid the financial repercussions that come with going through foreclosure. There are programs that are able to help you out during these difficult times, which you can learn about by reading on.
Foreclosure Process in Pennsylvania
The process for foreclosures can vary from state to state. As you miss each payment, you will end up getting charged a late fee after each grace period ends. You will get a notice from your loan servicer during this pre-foreclosure period as you start missing payments. When they call or send you mail, you shouldn’t avoid them. They can be of some help to you through offering options like forbearance, loan modifications, or a payment plan as loss mitigation efforts. They cannot start the foreclosure process until you are more than 120 days late on your payments per federal law.
In Pennsylvania, the law states that the foreclosing party must give a 30-day notice of their intent to foreclose. However, this does not apply to a home that isn’t occupied. This allows the homeowner some time to remedy the default. They must also send the homeowner information on the help that is available to them. The process of foreclosure is judicial, so the foreclosure will be resolved in the court system. You should also be aware that deficiency judgments are allowed if an action is filed within 6 months. It’s also important to know that if you move out of a home, the loan servicer can expedite the process of foreclosing your home.
Pennsylvania Foreclosure Programs
In addition to loss mitigation solutions, you do have some other options to help you if you are facing foreclosure. One option is the Homeowners’ Emergency Mortgage Assistance Program (HEMAP). This program could potentially cover any delinquent payments as well as offering you assistance every month if you have insufficient income to pay your mortgage. To qualify for this program, you need to prove that you are unable to make payments for reasons that are beyond your control and you will be able to restart payments as normal within 24 months.
If you are a veteran, you may be able to go to the VA to seek help with your mortgage payments as well.
Foreclosures are a stressful time in anyone’s life, but there is help available to you that you can turn to. In some cases, you can get the help that allows you to keep your home. However, this isn’t always the case and you may have to be okay with solutions like selling your home prior to the foreclosure process beginning. If you start to fall behind, it can be a good idea to contact your loan servicer to get ahead of the problem. This can prevent you from going into default and can help you avoid those problems that foreclosure can cause.