Lancaster Mortgage Foreclosure Lawyer

Falling behind on mortgage payments can happen to virtually anyone after a sudden job loss or major life change, putting them at risk of foreclosure in Lancaster.

Getting notices of intent from banks indicates to homeowners that they may face imminent foreclosure. After reading and responding to the bank’s letter, our lawyers can gauge the likelihood that it will proceed with a foreclosure case and prepare accordingly. Your original loan documents and communications with the lender could contain signs of predatory lending, which our lawyers may be able to use as a defense against foreclosure. Responding to a judicial foreclosure complaint with a Chapter 13 bankruptcy claim would halt foreclosure, giving you time to settle mortgage debt through a court-approved repayment plan our lawyers will write.

To have Young, Marr, Mallis & Associates assess your case for free, call our mortgage foreclosure lawyers at (215) 701-6519.

What it Means to Get a Letter of Intent from Your Mortgage Lender in Lancaster

If your bank recently sent you a notice of intent to foreclose in the mail, that could mean it is prepared to file a foreclosure complaint against you in court in the coming weeks. Our attorneys can quickly read the letter of intent you received, review your mortgage contract, and help you figure out your next steps.

Banks send letters of intent to borrowers who have been in mortgage default for at least 120 days. This letter is not an empty threat from your lender. In fact, if you fail to respond to the letter quickly enough, the bank might automatically file a foreclosure complaint without seriously considering alternative solutions. We can immediately review the letter’s contents and confirm if the lender’s assessment of your default is correct. We can then review the amount you owe. If you cannot cure your mortgage within 30 days and the bank is determined to foreclose, it might file a complaint in court at this time. If you received a notice of intent by mistake, tell our mortgage foreclosure lawyers so we can contact the bank and get to the bottom of the matter.

It is paramount to take intent letters seriously. Often, banks want repayment as quickly as possible and are willing to negotiate changes to mortgage contracts to avoid wasting time and resources on a judicial foreclosure case. Because of this, addressing a letter of intent immediately might enable you to keep your home and amend your existing mortgage with your current lender while avoiding the stress of a foreclosure case. Alternatively, waiting to respond to a letter could frustrate your lender, convincing them to forgo serious negotiations and proceed with a court case to foreclose.

Informing Our Lawyers of Predatory Lending to Stop Mortgage Foreclosure in Lancaster

Exposing a bank’s predatory lending may be a viable defense against foreclosure. Borrowers subjected to predatory lending might be headed for foreclosure almost immediately after signing a mortgage contract, and our attorneys may present evidence of the bank’s conduct during a judicial foreclosure case.

When reviewing mortgage documents for your case, our lawyers may find signs of predatory lending, such as large balloon payments towards the end of a contract, penalties for making early payments, very high interest rates, or initial monthly payments that were too high for your income at the time. Predatory lending practices might also violate federal or state loan servicing laws, possibly eliminating a bank’s legal standing to foreclose on your home in the court’s eyes.

In addition to providing our lawyers with all documents from your mortgage agreement, give us copies of any correspondence with your lender that might also indicate predatory lending, including emails, letters, or notes taken during meetings or phone calls. Evidence that indicates a lender pressured you to agree to a contract or rushed the process could suggest predatory lending and let you avoid foreclosure.

Choosing the Correct Bankruptcy Chapter to Pause Mortgage Foreclosure in Lancaster

While both common bankruptcy chapters for consumers would pause judicial mortgage foreclosure cases, only one would stop the bank from pursuing taking your home to settle outstanding debt. Understanding the differences between Chapter 7 and 13 bankruptcy cases is crucial. Otherwise, the court might liquidate your assets to repay creditors, including your home.

Chapter 7

In general, there are better choices than Chapter 7 bankruptcy for homeowners facing foreclosure. When you file Chapter 7, the foreclosure process in court will stop, but your lender could seek payment for outstanding debt by taking your home through asset liquidation. Chapter 7 is for debtors whose income makes it exceptionally hard to repay creditors, so the court liquidates their assets to satisfy debts. If keeping your home is your top priority, Chapter 7 could be a significant risk, especially because Pennsylvania does not have a homestead exemption.

Chapter 13

Chapter 13 may be the better bankruptcy solution for debtors risking mortgage foreclosure. This bankruptcy chapter does not involve asset liquidation, even if your primary debt is outstanding mortgage payments. As soon as we file Chapter 13, the court will grant an automatic stay on your foreclosure case. The next step is drafting a repayment plan for the court’s approval, which will consider your current income, dependents, expenses, and all outstanding debts. Chapter 13 repayment plans span three to five years, depending on the case, giving homeowners the time to get their finances in order and catch up on missed payments. Chapter 13 puts outstanding payments under the same low interest rate, mitigating the chance that homeowners cannot make their current mortgage payments while paying off previous ones. If you are dealing with any other debt besides missed mortgage payments, we can include them in your Chapter 13 bankruptcy case as well.

Call Our Lancaster Attorneys to Discuss Your Foreclosure Case

To have Young, Marr, Mallis & Associates evaluate your case for free, call our mortgage foreclosure lawyers at (215) 701-6519.