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Horsham, PA Mortgage Foreclosure Defense Lawyer

Owning a home has been the goal of many Americans for generations. Unfortunately, some homeowners see that dream snatched away from them by banks or other creditors when they fall behind on mortgage payments. If you are faced with a possible mortgage foreclosure, call our attorneys immediately so we can help you challenge the foreclosure.

Certain circumstances must exist before the bank may even send the first notice of foreclosure. For example, banks cannot foreclose on a home because the borrower is late on a single mortgage payment. The homeowner must be more than 120 days delinquent. Explain your situation to our team, and we will help you determine the best way to defend your home from foreclosure. If the bank goes forward with foreclosure, they may seize your home and auction it off. The bank will use the money from the sale to pay your mortgage, and you might be left with nothing. Sometimes, the best way to fight a foreclosure might be to file for bankruptcy, which you may also discuss with our team.

Get a private, free case assessment from our mortgage foreclosure defense attorneys at Young, Marr, Mallis & Associates by calling (215) 701-6519.

How to Fight a Mortgage Foreclosure in Horsham, PA

Foreclosures do not happen out of the blue. Very specific circumstances must be present for a creditor like the bank to initiate foreclosure proceedings. Knowing what circumstances must be present is crucial for our mortgage foreclosure defense attorneys to determine the best way to fight the foreclosure on your home.

Premature Foreclosure

In many cases, banks foreclose on homes before they are legally entitled to do so. According to 12 C.F.R. 1024.41(f), a creditor may not issue the first notice of foreclosure unless specific conditions are met. First, the bank may not issue the first notice until the borrower is more than 120 days late with payment. Second, a bank may issue the first notice if the borrower has breached a due-on-sale clause of the loan agreement. Third, and finally, the bank may foreclose if joins the foreclosure action of a subordinate or superior lienholder.

Have any of these things come to pass in your case? If not, call a lawyer immediately. Even if you have missed one or two mortgage payments, the bank should not be able to start the foreclosure process. Tell your attorney if the bank wants to foreclose too soon.

Clerical Errors

Another possibility is that the bank made a clerical error in your records. For example, you might be up to date on payments, but the bank is still trying to foreclose because they believe you are more than 120 days delinquent on your mortgage payments. A clerical error may have occurred, and the bank mistakenly believes you have not made payments.

Are payments being posted to the correct account? Are the payments being processed? In some cases, we may be able to bring the issue to the bank’s attention and have it fixed without the need for formal legal action. In others, the bank might be less cooperative, and we might need to take formal legal action to get them to fix their mistake.

Negotiations with Creditors

While foreclosures often feel like an automatic process that cannot be stopped, this is not entirely true. A foreclosure will only occur if the bank or other creditors want it to happen. Depending on your circumstances, we might be able to negotiate with the bank and get them to hold off on foreclosure proceedings, even if they are legally entitled to foreclose.

This might be a feasible solution if you have missed multiple mortgage payments but have recently come into some money and can now afford to catch up. Alternatively, you might have a large sum of money coming your way in the near future. For example, perhaps you are set to inherit a large sum of money, but your inheritance is currently tied up in probate. If we can convince the bank to wait just a few more months, you will get your inheritance, catch up on payments, and there will no longer be any need to foreclose.

This might sound like a long shot, but it might be more realistic than you think. Banks just want to get the money owed to them. If they can do this without foreclosing, they likely will.

How Bankruptcy Might Help You Fight a Mortgage Foreclosure in Horsham, PA

Under 11 U.S.C. § 362(a), the bankruptcy court will impose an “automatic stay” when it accepts someone’s bankruptcy petition. The automatic stay, as the name suggests, happens automatically. It prevents creditors, lenders, and banks from taking legal action against you related to your debts. It also prevents them from contacting you for payments. This can be a huge relief for people being harassed by demanding creditors.

How you file for bankruptcy may determine whether you can hold onto your home. If you file for bankruptcy under Chapter 13, you must develop a strict payment plan to help you pay your debts over the next few years, according to § 1322(a). If you stick to the plan and keep up with payments, you may emerge from bankruptcy with less debt and your homeownership intact.

Chapter 7 bankruptcy can be helpful, but you may be more likely to lose your home. Under § 726(a), a bankruptcy trustee may seize various properties and assets and liquidate them to pay your debts. This might mean they can seize your home and sell it. Federal homestead exemptions might help you maintain some equity in your home, but they do not always allow you to hold onto your house.

Do you have assets other than your home that can be liquidated? If you do, we might be able to work with the bankruptcy trustee appointed to your case and hopefully avoid having your home liquidated to pay back your debt. If you own multiple properties or hold other valuable accounts or assets, it might be better to liquidate them to avoid losing your home.