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Macungie PA Mortgage Foreclosure Defense Lawyer

Mortgage foreclosure is every homeowner’s worst nightmare, and our lawyers can help you devise a plan to stop repression if the bank has come knocking.

In Pennsylvania, banks must get the court’s approval to repossess homes. Since all foreclosures there are judicial, this favors homeowners somewhat. Non-judicial foreclosures happen according to the mortgage contract, which might put homeowners at a deficit, especially if the contract is originally unfair. With judicial foreclosures comes judicial oversight, allowing our lawyers to expose predatory lending and violations of lending laws or foreclosure rules. Stopping foreclosure before it is finalized is important, as there is no right of redemption following an auction. If lenders are willing to negotiate, loan modification might allow us to resolve the matter. If they are not, bankruptcy might provide the structure homeowners need to repay lenders and move forward.

Call Young, Marr, Mallis & Associates’ mortgage foreclosure defense lawyers at (215) 701-6519 for a free case analysis.

How Judicial Mortgage Foreclosures Favor Homeowners in Macungie, PA

All mortgage foreclosures in Pennsylvania are judicial, meaning they go through the courts. Lenders must follow a legal framework to foreclose properties, starting with notifying borrowers of their intent to foreclose and filing a lawsuit.

The bank can only take your home after getting court approval to foreclose. This bodes well for homeowners, as judicial foreclosures offer more oversight and protections against predatory lending practices and unfair home repossession. Lenders must inform borrowers of their intent to foreclose 30 days before filing foreclosure complaints. During this month, our attorneys may approach your lender to renegotiate your mortgage terms to prevent foreclosure and satisfy all involved parties.

Judicial foreclosures may involve various filings and mandatory court appearances, and our mortgage foreclosure defense lawyers can keep you abreast of important news concerning your case as it proceeds.

Non-judicial foreclosures are based on the terms of the mortgage contract, which could make it difficult for homeowners to fight if the terms are unfavorable. With the judicial oversight in-court mortgage foreclosure proceedings offer, our lawyers may more easily expose and hold lenders accountable for predatory lending practices or argue for a judge to dismiss a foreclosure complaint if the lender fails to follow mortgage foreclosure procedures accurately or violates lending laws.

The Chances of Redeeming Property After Mortgage Foreclosure in Macungie, PA

Pennsylvania does not have a right of redemption period following sheriff’s sales. So, if the bank forecloses on your home and sells it at auction, it will be lost, and you may not have an opportunity to repurchase it, even if you find the funds to cure your mortgage.

Despite not having a right of redemption period, Pennsylvania does let homeowners reinstate their mortgages up to one hour before a sheriff’s sale commences. This is only possible when homeowners cure defaulted loans and pay any other outstanding fees associated with the foreclosure.

Despite Pennsylvania allowing mortgage reinstatement up to the final moments before an auction, many homeowners lack the means to do this to stop foreclosure. Because of this, forming a viable defense against foreclosure is crucial. Homeowners who do not have the standing to challenge a foreclosure complaint might be able to avoid repossession using other tactics, such as filing for bankruptcy.

Defending Homeowners Against Mortgage Foreclosure in Macungie, PA

There are several ways to defend mortgage foreclosure complaints from lenders, such as by exposing predatory lending practices. Loan modification is also an option, especially if lenders want a fast resolution and wish to save time and resources. If lenders are unwilling to negotiate, filing for bankruptcy might be the solution homeowners need to keep their property.

Exposing Predatory Lending

Banks might face hurdles to foreclosure when our lawyers expose their predatory lending practices. Suppose that, when originally giving you your mortgage loan in Macungie, your lender gave you unfair interest rates, payment terms, or schedules you could not meet based on your income and expenses. This would be an example of predatory lending, as it might appear that the bank gave you your loan knowing you could not pay it and that foreclosure would be impending. Judges may dismiss a bank’s foreclosure complaint due to predatory lending or violating state or federal mortgage lending laws.

Modifying Existing Loans

Our lawyers may negotiate loan modification to alter the mortgage’s current terms to avoid repossession and lengthy legal proceedings for everyone involved. After reviewing your current mortgage agreement, outstanding payments, and financial information, like your expenses, income, and number of dependents, we might devise a plan to approach loan modification negotiations. For example, longer payment terms in exchange for smaller monthly payments might satisfy homeowners and lenders. Lenders are typically concerned with getting paid and may move forward with a sheriff’s sale if they feel it is the fastest route to resolution. Offering them an alternative that saves them time and resources via loan modification might be the fast resolution they want.

Filing for Bankruptcy

With Chapter 13 bankruptcy comes debt consolidation, meaning all debts, including those from outstanding mortgage payments, are consolidated under the same low interest rate. This is a viable solution for many homeowners facing foreclosure, as bankruptcy also provides an automatic stay upon filing. With this stay, banks cannot continue with any ongoing foreclosure proceedings. Even if your home has been foreclosed on and an auction is impending, it will not go through if you file for bankruptcy. Instead, the automatic stay will stop it, giving you an opportunity to settle your debt with your lender.

Chapter 13 gives debtors three to five years to do this. After we file your bankruptcy petition, we will submit a repayment plan to the court, explaining how you will pay what you owe while continuing to make current mortgage payments so that you do not fall further behind.