Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
Pennsylvania Foreclosure Law
Quick
Facts
- Judicial Foreclosure Available:
Yes
- Non-Judicial Foreclosure Available:
No
- Primary Security Instrument:
Mortgage
- Timeline: Typically 90 days
- Right of Redemption: No
- Deficiency Judgments Allowed: Yes
In
Pennsylvania, lenders may foreclose on a
mortgage in default by using the judicial
foreclosure process.
Judicial Foreclosure
In Pennsylvania, the lender must send a
notice of intent to foreclose to the
borrower before any foreclosure proceedings
may begin.
The notice of intent must be sent, by first
class mail, to the borrower, at their last
known address and if different, to the
property secured by the mortgage. The notice
should not be sent until the borrower is at
least sixty (60) days behind in their
mortgage payments.
In the notice, the lender must make the
borrower aware that his or her mortgage is
in default and that it is their (the
lender's) intention to accelerate the
mortgage payments if the borrower does not
cure the default within thirty (30) days.
This means that the remaining balance of the
original mortgage will come due immediately.
If the borrower does not cure the default by
paying the past due amount, plus any late
charges that have accrued, within the thirty
(30) days, the lender may then file a suit
to try and obtain a court order to foreclose
on the property.
If the court finds in favor of the lender
and issues an order of sale, the property
will be sold at a Sheriff's sale under the
guidelines established by the court. The
borrower has the right to cure the default
and prevent the sale at any time up to one
hour before the Sheriff's foreclosure sale.
Lenders have up to six months after the
foreclosure sale to file for a deficiency
judgment. Borrowers have no rights of
redemption once the foreclosure sale is
complete.
