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Drexel Hill, PA Mortgage Foreclosure Defense Lawyer

Being threatened with foreclosure does not mean you are guaranteed to lose your home in Drexel Hill. In reality, there are several viable ways to stop foreclosure, whether by defending your case in court or filing for bankruptcy.

Homeowners are protected by certain laws, both on the federal and state levels, that can help them avoid mortgage foreclosure in specific situations. For example, if a bank gave you a loan that was not reflective of your financial ability, and you are now facing foreclosure, you might be able to keep your home despite being delinquent. Whether a sheriff’s sale is about to take place or you have just received a notice of intent to foreclose from your bank, bankruptcy might be the easiest and surest way for you to stop foreclosure in Drexel Hill.

For help with your case from Young, Marr, Mallis & Associates, call our Drexel Hill, PA mortgage foreclosure defense lawyers at (215) 701-6519.

Fair Lending Laws and Mortgage Foreclosure in Drexel Hill, PA

There are federal and state laws that protect borrowers from predatory lending practices. Should these laws be violated by a lender, a homeowner can stop mortgage foreclosure proceedings, even if they are delinquent.

The Truth in Lending Act (TILA) is a major federal law that protects consumers. This law outlines how lenders must act when giving a loan and prohibits certain actions. According to the TILA, banks cannot pressure or suggest mortgage loans that would benefit them unless they are in a borrower’s best interest. Under the TILA, borrowers have a right of rescission period. This is a three-day period after agreeing to a loan during which borrowers can reconsider their decision and back out without risking losing money. If your lender did not allow you a right of rescission period, they could be in violation of the TILA.

Other predatory lending practices, such as offering a mortgage that is out of line with a borrower’s income and financial ability, hiding unnecessary expenses or balloon payments within a loan, or being unclear about the requirements of a loan, are also illegal.

If you have become delinquent and cannot pay your mortgage but believe that your lender was predatory in initially giving your loan or when restructuring your loan, tell our mortgage foreclosure defense lawyers in Drexel Hill. Because predatory lending is illegal, the court might dismiss the foreclosure complaint filed by your lender.

Stopping an Auction After Mortgage Foreclosure in Drexel Hill, PA

Even if foreclosure is imminent or an auction of your property is about to occur, you can still ward off foreclosure by entering bankruptcy in Drexel Hill.

With bankruptcy comes an automatic stay. Most debtors are eligible to receive an automatic stay that lasts the duration of their bankruptcy unless they have filed for bankruptcy many times in the recent past. When an automatic stay takes effect, lenders and creditors must stop all efforts to collect on debt, including a sheriff’s sale. This means that even if the court approves foreclosure, it can be stopped.

Bankruptcy is not a Band-Aid solution. When you file, our attorneys will assess your debts, including your outstanding mortgage payment, to make a plan for repayment. You must repay your lender when you file for bankruptcy if you wish to keep your property. That said, you will only do so based on your income and expenses, meaning repaying your lender will likely become much easier. If you also have other debts that are impeding your ability to make your monthly mortgage payments, you can address those as well while in bankruptcy in Drexel Hill.

How Mortgage Foreclosure Impacts Your Credit in Drexel Hill, PA

Stopping mortgage foreclosure by any means necessary is crucial for homeowners in Drexel Hill. Not only will foreclosure leave you without a place to live, but it will also deeply impact your credit.

Mortgage foreclosure can make a homeowner’s credit drop drastically. Because of the hit to your credit, you will likely find it challenging to purchase another home and get another mortgage. Furthermore, a foreclosure will stay on your credit report for seven years from the day you missed your first payment, not the day your home was foreclosed on.

Although bankruptcy also impacts a homeowner’s credit, it allows them to keep their property and rebuild their credit in a timelier fashion. Additionally, depending on the chapter filed, bankruptcy involves repayment plans, allowing homeowners to get a handle on their finances according to a timeline that meets their needs in Drexel Hill.

What to Do When Facing Mortgage Foreclosure in Drexel Hill, PA

Once you have been delinquent for 120 days in Drexel Hill, your lender can begin the foreclosure process. Because of this, it is important to act quickly so that foreclosure does not succeed.

Before foreclosure happens, you will receive a notice of intent from your bank. Once 30 days have passed since sending that letter, your bank can file a foreclosure petition with the court. Mediation will likely follow. If a lender can successfully prove that they are within their rights to take a borrower’s home, the property will be foreclosed upon, and an auction will take place. Once your home is sold, you will be unable to get it back.

You do not have to file for bankruptcy as a last resort to stop foreclosure in Drexel Hill. In fact, you can enter bankruptcy preemptively before ever receiving a notice of intent from your lender. Suppose you know that you will not realistically be capable of curing your mortgage or defending your case in court. In that case, you can declare bankruptcy before the foreclosure process begins to avoid it completely.