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Lebanon, PA Mortgage Foreclosure Defense Lawyer

Homeownership is a cornerstone of the American Dream. Unfortunately, owning a home is becoming harder and harder, thanks to the current economic climate. People lucky enough to buy a home might have trouble keeping up with high mortgage bills, and it can be easy to fall behind. Fall far enough behind, and the possibility of foreclosure becomes very real. If you find yourself in that situation now, call our lawyers for help immediately.

When a homeowner falls too far behind on their mortgage, the bank can claim the house through foreclosure. The homeowner is essentially evicted from their home, and the bank auctions the house to recoup their losses from the unpaid mortgage. However, banks cannot just walk in and foreclose on your home after one missed mortgage payment. There are rules and laws protecting homeowners. If the bank wants to foreclose on your home, or you are worried about whether you can afford your mortgage, call an attorney for help.

Get a confidential case review for free from our mortgage foreclosure defense lawyers by calling Young, Marr, Mallis & Associates at (215) 701-6519.

Mortgage Foreclosures and How to Avoid Them in Lebanon, PA

A mortgage foreclosure occurs when the bank or other creditors who helped homeowners secure a home loan seize possession of their home, usually after too many missed mortgage payments. Banks typically sell foreclosed homes at auctions called sheriff’s sales, and the proceeds are used to recoup losses. Foreclosure can be a nightmare for homeowners, but an attorney can help you defend your property from foreclosure.

Typically, mortgage foreclosures happen when homeowners have missed too many payments or done something else that gives the bank the right to foreclose. If you are unsure why the bank is foreclosing, call our mortgage foreclosure defense lawyers immediately. It is not unusual for banks to try to foreclose when they do not have the right to do so, and they rely on frightened homeowners being too intimidated to fight back.

It is much easier to fight a mortgage foreclosure before it officially begins. Have you received notices or letters from the bank or other creditors regarding the foreclosure? Creditors are required to send advanced notice of their intent to foreclose, giving you time to review the situation with a lawyer. Even if the bank has already started foreclosure proceedings, it is not too late. Speak to an attorney if you are falling behind on mortgage payments or have received notice of an impending foreclosure.

When Can Creditors Begin a Mortgage Foreclosure in Lebanon, PA?

A bank or creditor cannot foreclose for just any old reason. Specific legal criteria must be satisfied before the bank can even begin the foreclosure process. According to 12 C.F.R. § 1024.41(f), a bank or other director cannot initiate foreclosure unless you are at least 120 days delinquent with mortgage payment, you violated a due-on-sale clause of your loan agreement, or the creditor or bank is joining the foreclosure action of a superior or subordinate lender. If you do not believe any of these criteria have been met in your case, talk to an attorney immediately. If the bank is trying to foreclose when they do not have the legal standing to do so, we can work to stop them.

While banks cannot foreclose until you are at least 120 days past due with payments, many homeowners want to know what happens if they miss only one or two payments. While the bank might be unhappy, they cannot foreclose. However, they will likely send you notice of the delinquency and information about when and how they will proceed with foreclosure. Be sure to keep all letters, notices, and communications between you and the bank, as they might be necessary when challenging a foreclosure.

How to Challenge a Mortgage Foreclosure in Lebanon, PA

Go over the details of your current situation with your mortgage with your lawyer. If there is any way you can challenge the foreclosure, your attorney can help you figure out how. Be sure to maintain copies of letters, emails, notices, and even phone calls you have with the bank, as this information might shed light on how to fight the foreclosure.

One of the first things we should think about is whether the bank has the legal standing to begin foreclosure proceedings. Remember, the bank cannot begin foreclosure until you are at least 120 days delinquent or violate some other terms of your loan agreement. If the bank has initiated foreclosure too early and you did not violate any other terms of your loan agreement, we can have the courts stop the bank from foreclosing, at least for now.

If you have received notices from the bank about their plans to foreclose, check with your lawyer about it. In some cases, the foreclosure is made in error, and the homeowner might not even be behind on payments. It is not unusual for banks to encounter clerical errors. Maybe you have been dutifully making monthly payments, but the bank neglected to record these payments. Now, their records indicate you have missed too many payments, but your own records might say otherwise. Thorough record keeping can be extremely helpful in these kinds of cases.

Even if we cannot totally avoid the foreclosure, we might be able to buy you additional time to figure out our next steps. If you file for bankruptcy, the court must implement an “automatic stay.” Under 11 U.S.C. § 362(a), an automatic stay means that any legal claims pending against you must be halted, and any new claims must wait until your bankruptcy case is complete. This includes mortgage foreclosures. Depending on how you file your petition for bankruptcy, you might be able to avoid foreclosure and keep your home.