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PENNSYLVANIA FORECLOSURE HELP

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Pennsylvania Foreclosure Statute laws


Judicial foreclosure is available in Pennsylvania, but non-judicial foreclosure is not available.  Primary service instrument is mortgage. The timeline for foreclosure in Pennsylvania varies by process, but typically last 90 days. Right of Redemption is not allowed, but deficiency judgments are allowed.

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.

Pennsylvania Foreclosure Prevention
Act 91 of 1983 - Homeowners' Emergency Mortgage Assistance Program (HEMAP)
NOTICES
  • High unemployment triggers extended assistance and changes in payment formula
  • Interest rate for loans closed in 2009

Related Information:
Thousands of Pennsylvania families faced with the possible loss of their homes through foreclosure have received help from the Homeowners’ Emergency Mortgage Assistance Program (HEMAP). This unique program, created by Act 91 of 1983, is the only one of its kind in the nation. HEMAP is a cost effective means to prevent homelessness among Pennsylvanians. By giving assurance of steady mortgage payments, it allows homeowners to seek alternate employment, job training, and/or education when they need it most. The program is funded by State appropriations and repayment of existing HEMAP loans.
HEMAP is a loan program designed to protect Pennsylvanians who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure. HEMAP funds loaned to prevent foreclosure are not a grant. These funds are a loan and must be repaid. Please note that FHA Title II (purchase) mortgages are not eligible under this program.

When approved for HEMAP assistance, a loan is created (secured by a mortgage on the property being threatened by foreclosure) to bring the delinquent payments current. Two types of assistance are available to the homeowner depending on their income and financial situation: continuing mortgage assistance loans and non–continuing mortgage assistance loans.
If a homeowner qualifies for a non–continuing mortgage assistance loan, their mortgage is brought current to a specified date and the homeowner is responsible for making all subsequent monthly mortgage payments to their lender along with a monthly payment to HEMAP. The homeowner may also be required to make a cash contribution toward the mortgage delinquency at the time the HEMAP loan closes.

If a homeowner qualifies for a continuing mortgage assistance loan, their mortgage is brought current to a specified date and then HEMAP subsidizes their monthly mortgage payment to their lender.

All HEMAP loans, continuing or non–continuing, are limited to a maximum of 24 months from the date of the mortgage delinquency, or to a maximum of $60,000.00, whichever comes first.

HEMAP loan recipients are required to pay up to 40 percent of their net monthly income, as determined by HEMAP, towards their total housing expense. The minimum monthly payment/contribution to HEMAP, set by law, is $25.00 per month per mortgage assisted.


Total housing expense is the sum of the mortgagor’s monthly mortgage payments, including escrows, utility costs, hazard insurance expenses, real property taxes and, in the case of cooperatives and condominiums, the monthly amount the unit is assessed for the maintenance of common elements.

If the homeowner qualifies for a continuing mortgage assistance loan, the homeowner sends their designated monthly payment/contribution amount to HEMAP. HEMAP combines the amount sent by the homeowner with HEMAP funds and forwards the full monthly mortgage payment directly to the lender on the homeowner’s behalf. Homeowner’s contributions are set at 40 percent of the household net monthly income (NMI) less the utility expense and homeowners insurance costs, if it is not escrowed.

The interest rate on mortgage assistance loans is nine percent when household income requires repayment based on the 40 percent calculation. If income does not require repayment based on the 40 percent calculation, interest will not be charged and will be adjusted back and forth to nine percent as necessary. There is a mandatory minimum payment of $25.00 per month per mortgage assisted.


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