Bethlehem, PA Mortgage Foreclosure Defense Lawyer

Most homeowners do not plan on ever facing a mortgage foreclosure, but sometimes, life has other plans. If you face foreclosure, speak to an attorney immediately to make sure your rights and assets are as protected as possible.

The mortgage foreclosure process is not nearly as fast as some think. Someone from the bank cannot simply show up on your doorstep one day and tell you to vacate the premises so they can seize your home. Pennsylvania is a judicial foreclosure state, and foreclosure proceedings must go through the courts. This is a somewhat slower process than in non-judicial foreclosure states, and we might have more time to come up with a game plan. Your lawyer can help develop defense tactics that might help you avoid a foreclosure or at least cushion the blow, so you have the resources you need to start over. We can communicate with servicers, lenders, and creditors to hopefully circumvent a foreclosure.

Contact Young, Marr, Mallis & Associates by calling (215) 701-6519 to get a confidential, initial case review from our mortgage foreclosure defense attorneys.

What Happens During a Mortgage Foreclosure in Bethlehem, PA

The mortgage foreclosure process does not happen overnight. Contrary to what you might see on TV or in movies, people do not just wake up to repo workers seizing their possessions and evicting them from their homes. Foreclosure is a delicate legal process, and certain rules must be followed.

Pennsylvania is a judicial foreclosure state. This means that when a creditor, like a bank, wants to foreclose, they must do so through the courts. As such, in Pennsylvania, a creditor must sue you in court to begin foreclosure. Even this should not come out of the blue. Creditors are required by law to provide numerous notices of an impending foreclosure so that homeowners can plan accordingly and have the chance to defend themselves and their homes.

In short, the servicer will file a lawsuit against you for the money they are owed. If you cannot make good on payments, they may foreclose on your home, seize your property, and auction it off to recoup their losses.

According to 12 C.F.R. § 1024.41(f), a loan or mortgage servicer may not initiate foreclosure proceedings unless a mortgage is at least 120 days past due. Missing one or even a few mortgage payments is usually not enough to warrant foreclosure. However, if you miss a couple of payments, you might begin receiving notices about the foreclosure process.

While this is a daunting process, it is not a hopeless one. Our mortgage foreclosure defense attorneys can explore legal options to help you keep your home. For example, we might negotiate with the servicer or creditor to buy more time or develop another financial arrangement that allows you to keep your home.

How to Defend Yourself Against a Mortgage Foreclosure in Bethlehem, PA

If a creditor begins the foreclosure process on your home, you do not have to sit back and watch as your home is taken away from you. There are ways in which our legal team can work to stop the foreclosure or at least protect your rights and financial interests as best as possible.

Negotiating with the Servicer or Creditor

One possible strategy is to contact your loan servicer or creditor and try to work out an arrangement that does not involve foreclosure. Foreclosure is not an automatic process. If the creditor or servicer chooses not to initiate foreclosure, even if they are legally entitled to do so, then foreclosure does not happen. We might talk with your creditors and convince them to hold off on foreclosure. This might be an effective strategy if you expect a significant financial boost or windfall soon.

Another possibility is that we work out a payment plan with your creditors. Often, creditors would much rather get the money they are owed than initiate foreclosure. Even if we cannot pay back everything you owe to get your mortgage payments up to date, we might offer enough to stave off foreclosure. Talk to your lawyer about your money and assets. If you have some savings stored away, now might be the time to use it.

Challenging the Legality of the Foreclosure

We should also consider challenging the validity or legality of the foreclosure. If the bank or another creditor does not follow the rules, we can challenge the foreclosure. This might mean we buy some extra time to get your finances in order, or we might stop the foreclosure altogether.

Did they initiate foreclosure too soon? Sometimes, banks try to begin foreclosure sooner than they should. This might be a clerical error or an underhanded attempt to get homeowners out of their homes so they can be auctioned off quickly. Remember, if you are not yet 120 days past due on your mortgage, foreclosure should not be happening just yet.

We might also challenge the foreclosure if you wish to cure the default on your mortgage, but the bank is not accepting your payment. According to Act 6 in Pennsylvania, you have a right to cure the default until one hour before your house is auctioned. Curing the default involves paying everything you currently owe in addition to various other fees. While curing a default is difficult, it is not impossible. The bank is legally obligated to allow you to cure the default if you can.

Filing for Bankruptcy

Another option that might sound frightening at first is filing for bankruptcy. Contrary to popular belief, bankruptcy is not some sort of penalty for people facing financial struggles. It is a solution to financial problems and might help you slow down foreclosure proceedings.

When a person files for bankruptcy, the court should initiate an automatic stay. This prevents creditors and bill collectors from calling you and demanding payment. It also halts legal proceedings and prevents new claims against you from being filed. If the bank has initiated foreclosure, the foreclosure process halts immediately, at least until your bankruptcy case is over.

For many, this gives them the time they need to reorganize their finances, liquidate assets, and make up for delinquent mortgage payments. Talk to your attorney about how bankruptcy can help you during foreclosure.

For a Review of Your Case, Contact Our Bethlehem, PA Mortgage Foreclosure Defense Attorneys

Get in touch with Young, Marr, Mallis & Associates by calling (215) 701-6519 to get a confidential, initial case review from our mortgage foreclosure defense attorneys.