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State Foreclosure Information
Pennsylvania
When you develop a definite plan of action with well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We have outlined the foreclosure process for the
state of Pennsylvania .
The Process
Pennsylvania's judicial foreclosure is not easy for lenders. All actions to foreclose,
accelerate or take possession are stayed until the borrower is sent an "Act 91"
notice giving the borrower 30 days to meet the lender or a consumer credit agency listed
on the notice.
Starting from the day of the first meeting, the borrower has another 30 days delay to try
and resolve the problem by restructuring loan payments. Otherwise, the borrower can apply
for a Homeowner's Emergency Mortgage Assistance Program Loan and gain an extra 60-day delay
on foreclosure to process the application. If the borrower has had good residential credit
for the past 5 years, is 60 days delinquent and has a reasonable prospect of resuming loan
payments in full within 36 months, then the borrower should be approved. If the loan is
disapproved, or no meetings took place after the first 30 days, the lender may foreclose.
Reimbursement
Under "Act 6," which applies to home loans under $50,000, the
borrower must be sent a 30-day notice of the foreclosure, during which time attorney's fees
are limited to $50. Also, the borrower may pay the past due payments and stop the foreclosure
up to one hour before the bidding at the sheriff's sale and may do this up to three times
in a calendar year.
The Foreclosure Lawsuit
The foreclosure complaint (lawsuit) must be filed and served on the borrower.
It must describe the property to be foreclosed on. It must state the names of the borrower
and the lender, the itemized amounts due, the fact that the mortgage is in default and a
demand for judgment. Although the lender may state more than one reason to foreclose, the
lender may not sue to collect the money owed on the loan in addition to the suit to force
the sale of the property by foreclosure. The defendant may file a counterclaim against the
lender. The lawsuit however, must be tried before a judge, without a jury. If the court
orders foreclosure, then at least 30 days before foreclosure the sheriff must give notice
by putting a handbill on the property, serving a copy on the borrower and advertising the
property for sale for three consecutive weeks. The sale takes place a month or two after
the court's order.
Redemption
There is no right of redemption after the sale.
Deficiency
Pennsylvania passed the Pennsylvania Deficiency Judgment Act. The lender
may file a lawsuit to collect on the promissory note signed by the borrower within six months
of foreclosure. This lawsuit must be separate from the foreclosure lawsuit. The borrower
has the right to force the lender to credit the fair market value of the property sold at
the foreclosure sale against what is owed on the note. The suit must be filed within six
months after the foreclosure.
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