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Bryn Mawr Mortgage Foreclosure Defense Lawyer

No one wants to default on their mortgage and put themselves at risk of foreclosure. Still, financial hardships happen, causing homeowners to miss mortgage payments and make them vulnerable to foreclosure in Bryn Mawr.

If you are at risk of foreclosure, your lender must inform you by sending a notice of intent. Depending on your eligibility, you might be able to get a loan from the Homeowners’ Emergency Mortgage Assistance Program (HEMAP). If you cannot get a loan from such a program, filing for bankruptcy can prevent mortgage foreclosure in Bryn Mawr. Avoiding foreclosure at all costs is important because of the impact it can have on a homeowner’s life. Foreclosure can seriously hurt your credit, making it challenging for you to get a new mortgage in the future or find another place to live in Bryn Mawr.

You can call Young, Marr, Mallis & Associates at (215) 701-6519 to have our Bryn Mawr mortgage foreclosure defense lawyers assess your case for free today.

Will Your Lender Inform You of Mortgage Foreclosure in Bryn Mawr?

If you stopped paying your mortgage in Bryn Mawr, even for a short period of time, your lender might proceed with foreclosure. Fortunately, homeowners will be informed of a possible foreclosure before it happens.

The bank cannot show up at your home and take it out from under you without any warning. In Bryn Mawr, lenders must send either Act 91 notices or Act 6 notices to delinquent homeowners. Act 91 notices are sent to borrowers with conventional mortgages, while Act 6 notices are sent to borrowers with Federal Housing Administration loans or U.S. Department of Agriculture loans. Both notices contain virtually the same information. Homeowners will be informed of their delinquency and be given an opportunity to cure their mortgages. If borrowers cannot do this, banks can proceed with filing a foreclosure petition with the court within 30 days.

Upon receiving a notice of intent to foreclose from your bank, you should inform our mortgage foreclosure defense lawyers immediately. Our attorneys can create a plan based on your outstanding payments and financial ability. If your lender is not open to negotiating lesser payments in return for a longer mortgage, your case might go to court. If you are unable to defend your case, you can always declare bankruptcy so that your home is not foreclosed upon in Bryn Mawr.

Relief for Homeowners Facing Mortgage Foreclosure in Bryn Mawr

Homeowners facing mortgage foreclosure in Bryn Mawr have options. There are state programs designed to help certain borrowers in danger of losing their homes to foreclosure. If you are not eligible for a relief program, bankruptcy might provide similar assistance.

HEMAP Loans

The Homeowners’ Emergency Mortgage Assistance Program was created to help and protect homeowners who are at risk of foreclosure through no fault of their own. Loans given by HEMAP must be repaid, just like a mortgage. To qualify for a HEMAP loan, you must be at least 60 days delinquent and have received an Act 91 notice of intent to foreclose from your lender. The property you are seeking a loan for must be a family residence. Among other eligibility criteria that must be met, the homeowner must be facing financial hardship due to circumstances they cannot control. Circumstances that allow homeowners to qualify for HEMAP loans include being fired or laid off, experiencing serious medical problems, or going through a divorce or separation. If the reasons for the homeowner’s delinquency are within their control, for example, if they quit their job, they will not qualify for a HEMAP loan in Bryn Mawr.

There are two types of loans provided by HEMAP: continuing mortgage assistance loans and non-continuing mortgage assistance loans. Neither can exceed $60,000.

Bankruptcy

If you are ineligible for a HEMAP loan or want to address your mortgage delinquency another way, you can declare bankruptcy. Bankruptcy will allow you to repay your lender through asset liquidation or a repayment plan. If you file Chapter 7 in Bryn Mawr, your home might be at risk of liquidation if you do not use federal exemptions. Pennsylvania does not have a homestead exemption or other exemption that might realistically allow you to safeguard your home from liquidation. Most people are eligible to enter into bankruptcy, regardless of the amount they owe to lenders or creditors. Bankruptcy will lead to an automatic stay, preventing lenders from contacting you regarding repayment or proceeding with mortgage foreclosure or a sheriff’s sale.

Consequences of Mortgage Foreclosure in Bryn Mawr

The primary consequence of mortgage foreclosure is the loss of one’s home. In addition to that, there are other consequences that might impact borrowers for some time in Bryn Mawr.

Once your home is foreclosed upon and sold at auction, you will have to find another place to live. This might be challenging because of the impact on your credit due to mortgage foreclosure. Considering that you recently fell delinquent on your previous mortgage, and that delinquency led to foreclosure, another bank might hesitate to give you a new mortgage. Even finding a rental property to live in might be difficult if a mortgage foreclosure is on your credit report. Foreclosures can remain on credit reports for about seven years in Bryn Mawr.

While bankruptcy will also impact your credit, it will likely allow you to retain your property. This means you will have time to build back up your credit and will not have to look for another place to live. The consequences of mortgage foreclosure are severe, especially for borrowers with families depending on them, meaning avoiding foreclosure by any means necessary is often of the utmost importance for homeowners in Bryn Mawr.