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Limerick, PA Mortgage Foreclosure Defense Lawyer

The concept of the bank taking your house after a few months of missed mortgage payments is frightening but a potential reality for many homeowners. Fortunately, banks have to take certain steps to foreclose and cannot get court approval without having standing.

Before foreclosure starts, your bank must inform you that you have defaulted on your loan. We can help borrowers respond to notices of intent quickly with proposed changes to mortgage terms that would suit all those involved. If a loan cannot be modified, the case may go to trial, as banks cannot foreclose without court approval in Pennsylvania. If a bank has standing to foreclose and gets approval for a sheriff’s sale, homeowners can file Chapter 13 bankruptcy so the auction does not occur. Bankruptcy is particularly beneficial for borrowers with several sources of debt, not just mortgage debt, who need the structure of a repayment plan to repay creditors and lenders.

For a free case evaluation from our mortgage foreclosure defense lawyers, call Young, Marr, Mallis & Associates at (215) 701-6519.

The Timeline of Mortgage Foreclosure in Limerick, PA

Mortgage foreclosure cases follow a similar timeline, starting with banks sending notices of intent to foreclose. Responding to these notices and official foreclosure complaints is important; otherwise, the judge might automatically side with the lender. Though all foreclosures go through the court, we may be able to avoid a trial by negotiating alternative payment terms with your lender. While this is the general timeline for foreclosure, borrowers can deviate from it to file for bankruptcy, which could give them the time and relief they need to catch up on mortgage payments and other debt.

Notice of Intent

Foreclosure starts with a notice of intent from a lender. If you have missed mortgage payments for more than 120 days, your bank can notify you of your default and will proceed with foreclosure if you cannot cure the payments. This notice of intent must contain specific details explaining the bank’s next steps, and our lawyers can review it to see if the bank’s information aligns with your understanding of recent payments or the mortgage’s terms. Suppose you anticipate getting a notice of intent soon because you have recently defaulted on your mortgage. In that case, our mortgage foreclosure defense lawyers can begin reviewing your case so we can respond immediately after your lender contacts you.

Borrower Response

Borrowers typically have 30 days to respond to a notice of intent. Otherwise, banks can proceed with foreclosure. Because borrowers have a short time to respond to a notice of intent, our lawyers can quickly begin preparing cases and possible defenses. We can start by reviewing your original loan application and any correspondence with your loan provider. If we notice signs of predatory lending in the mortgage contract, we can cite that in our response to the lender’s notice. Judges often dismiss foreclosure complaints for predatory lending, which occurs when lenders intentionally give hopeful homeowners loan terms they cannot meet, ultimately leading to loan default and foreclosure.

Also, while formulating our response to a notice of intent, we can consider whether your case would be eligible for forbearance, which would temporarily suspend your mortgage payments because of undue hardship or financial distress, like a recent illness or job loss.

Loan Modification Negotiations

Homeowners should take letters of intent to foreclose seriously. However, banks are sometimes open to negotiating new mortgage terms to avoid foreclosure, as this could save them time and resources. When preparing to negotiate with your lender, we can amend the payment amounts and terms to suit your current financial situation without negatively affecting the bank. Working toward curing a mortgage is often preferable to going through a judicial foreclosure and auction process, and we can explore this option after you get a notice of intent from your lender.

Foreclosure Trial

When lenders refuse to negotiate mortgage agreements, foreclosure claims can go to court. When this happens, a judge will decide whether the bank has standing to foreclose on the property and, if not, could dismiss the case. As mentioned, judges might dismiss foreclosure complaints if banks are predatory when servicing loans or if they violate federal or state lending laws. Showing evidence of this predatory activity is necessary, and our lawyers may do so by showing the discrepancy between your income and expenses and original loan terms.

Because all foreclosures in Pennsylvania are judicial, banks cannot rush through the process, giving homeowners more opportunity to assert defenses against foreclosure. These trials can take time, and our lawyers can keep you updated on all mandatory court appearances and filings.

Sheriff’s Sale or Bankruptcy

When judges side with banks and grant foreclosure requests, sheriff’s sales might quickly follow, giving borrowers little time to determine their next steps. If you cannot fully cure your mortgage and the bank has standing to foreclosure, bankruptcy can stop the process. Bankruptcy affects one’s credit score similarly to foreclosure. However, borrowers in bankruptcy can often keep their homes and do not need to rely on a fair credit score to secure new housing. Borrowers who lose their homes to foreclosure will experience a hit to their credit, which could make it harder to find another mortgage in the future.

Borrowers do not have to wait until a sheriff’s sale is upcoming to file for bankruptcy. When initially reviewing your case and possible defenses to foreclosure, our lawyers may recommend pursuing bankruptcy earlier, especially if you have other debts. Homeowners dealing with collection attempts from numerous creditors could face wage garnishment, car repossession, and harassment in addition to foreclosure, and bankruptcy could put an end to all of those efforts.