How Many Months Behind Before You Go Into Foreclosure in Pennsylvania?

As a homeowner, foreclosure is likely high on your list of things to avoid. Unfortunately, many homeowners fall behind on mortgage payments and must face the prospect of foreclosure. Fortunately, your bank cannot just decide to take your home; it must first go through a judicial foreclosure in court.

Creditors may only initiate foreclosure when criteria are met, including the number of months behind your mortgage you are. Under federal law, creditors can only foreclose once you are at least 120 days behind. Even then, foreclosure is not guaranteed, and creditors might be willing to work with our lawyers regarding loan modification. Depending on your unique situation, how quickly creditors decide to start foreclosure and what we can do about it may vary. Foreclosure must begin with a formal notice from the bank. If notice is not provided, the bank should be unable to proceed with the foreclosure. If you have received such notice or believe it is forthcoming, talk to our team immediately so we can identify an appropriate defense or modify your existing loan.

Contact our Pennsylvania mortgage foreclosure defense attorneys for a free, confidential case evaluation by calling Young, Marr, Mallis & Associates at (215) 701-6519.

How Many Payments Can You Miss Before Foreclosure in Pennsylvania?

Missing a single mortgage payment is not enough for the bank to suddenly foreclose on your home. Missing even two or three payments likely is not enough. In Pennsylvania, a creditor may not initiate foreclosure proceedings until you are at least 120 days delinquent, or about four months.

A foreclosure must begin with a formal notice from the loan servicer, known as a notice of intent to foreclose. This notice is not just a courtesy from the bank letting you know about its plan; sending it to you is a legal requirement, and the bank must include specific information about the foreclosure process and your options going forward.

The notice may give you time to remedy the delinquency, usually about a month. If you cannot catch up during that time, the bank may proceed with the foreclosure. Since Pennsylvania is a judicial foreclosure state, the bank must sue you in court to foreclose.

If you miss several payments in a row, the bank might prepare to send you a notice of intent to foreclose immediately upon 120 days of loan default. Missing any mortgage payments could cause financial stress as you may struggle to catch up, resulting in a foreclosure risk where there previously was none.

Talk to our Philadelphia mortgage foreclosure defense attorneys if you are behind on payments but not far enough to trigger foreclosure proceedings. If the bank tries to foreclose when it should not, we can help you fight the foreclosure and hopefully keep your home.

How Quickly Can Your Lender Foreclose on Your Home After You Miss Payments in Pennsylvania?

Because all foreclosures in Pennsylvania must go through the courts, it is harder for lenders to speed through the process and unfairly take a mortgagee’s home without judicial oversight and approval.

Once your lender sends you a notice of intent to foreclose, we will have 30 days to respond. During this period, or before, in anticipation of a potential foreclosure complaint, our lawyers can review relevant information to identify an appropriate defense. Suppose we identify signs of predatory lending after reading your loan agreement and reviewing the application documents you provided at the time. In that case, we may use that as a defense to stop foreclosure despite your delinquency.

Other terms, conditions, or restrictions might play into the foreclosure process. Remember, not all mortgages are exactly the same, and your legal options might depend on the terms of your mortgage.

No matter how many payments you have missed, the bank cannot take your home without a judge’s approval. This could take months or, in some instances, years, as foreclosure cases are complicated. While the case is being carried out, you can most likely stay in your home.

Because judicial foreclosures require court approval at every step of the way, they often take much longer than non-judicial foreclosures, which some states allow. As such, our lawyers might have extra time to get your finances in order and more opportunities to fight foreclosure before a judge.

The Many Ways to Resolve Foreclosure Cases Out of Court After Missing Payments in Pennsylvania

While banks are legally permitted to initiate foreclosure proceedings after four months of delinquency, they do not have to. Many lenders would much rather help mortgagees get back on track to continue making payments than waste time on the lengthy judicial foreclosure process. Remember, creditors only want to be paid, so our lawyers can approach them with alternative arrangements to avoid foreclosure so that it happens sooner.

For example, suppose you are delinquent on your mortgage payments for at least 120 days, but the delinquency is not a huge sum. In that case, the bank might be more willing to work with our attorneys to negotiate changes to the mortgage agreement and a repayment plan. For example, if you only need a few thousand dollars to catch up on missed payments, you might be able to get a loan from friends or family members so you can keep your home. Alternatively, the bank might agree to adjust your monthly payments so you can catch up, and our Pennsylvania mortgage foreclosure defense attorneys can ensure these adjustments appropriately take your income and outstanding payments into account.

If the delinquency represents a much larger sum, the bank might be far less willing to reach an agreement or compromise. Even so, we might convince them to adjust the terms of your mortgage. For example, if you can pay a larger sum upfront to catch up on missed payments partially, the bank might agree to lower your monthly payments to something you can afford.

In situations of extreme financial hardship, a bank might grant loan forbearance, temporarily pausing payments. However, you will still be responsible for paying the full amount after the forbearance period is over.

How to Fight Foreclosure in Court if You Default on Your Mortgage and Miss Payments in Pennsylvania

If you are in foreclosure or falling behind on your mortgage and believe foreclosure is in your future, talk to our team about how you can fight the foreclosure and keep your house.

Depending on the situation, we can challenge the foreclosure in court. We can raise the issue in court if the bank tries to foreclose too soon or refuses to allow you to cure the default. You have a right to cure the default under 41 Pa.C.S. § 404(a). Curing the default means paying enough money to catch up on all your missed payments, legal fees, and late penalties. While it is tough to accomplish, you have a right to cure the default if you have the money, and the bank cannot stop you from doing so.

Sometimes, homeowners default on their mortgages because they are subject to predatory lending from banks. There are many examples of predatory lending, such as if a bank knowingly and intentionally gives you payment terms you cannot afford based on your income and expenses or includes early-payment penalties combined with balloon payments in contracts. Pressuring would-be homeowners to agree to terms they do not understand or do not benefit them could also be considered predatory lending, and our lawyers can review communications between you and your loan servicer and the original loan application and documents as we prepare a defense.

How Many Options Do You Have When Facing Foreclosure in Pennsylvania?

Even if foreclosure seems imminent, you may have other options and ways of stopping a lender from taking your home in Pennsylvania. For example, most who file for bankruptcy benefit immediately from an automatic stay and then subsequently by having a reliable path to repayment that doesn’t put their home at risk.

The bankruptcy chapter you file will dictate the rest of your case. Chapter 7 requires asset liquidation, and Chapter 13 allows debtors to follow repayment plans. If you file Chapter 7 and cannot use any asset liquidation to exempt your home, the bank might take your home that way. Chapter 13 doesn’t put your assets at risk; instead, it lets you repay creditors over a period of three to five years, depending on your income and expenses, like your upcoming mortgage payments.

Especially if your options are to lose your home to foreclosure because your bank has standing to foreclose or file bankruptcy, bankruptcy is the preferable route. Furthermore, bankruptcy does not have to be a last resort for anyone facing financial stressors like defaulting on their mortgage, as it provides a framework for debt repayment and, in some cases, debt forgiveness. While bankruptcy will not erase your mortgage debt, it can eliminate other stressors, like medical and credit card debt.

Contact Our Pennsylvania Mortgage Foreclosure Defense Lawyers for Support

Contact our Upper Darby, PA mortgage foreclosure defense attorneys for a free, confidential case evaluation by calling Young, Marr, Mallis & Associates at (215) 701-6519.