We buy houses in Pennsylvania. As professional PA home buyers, we agree that understanding the foreclosure process in Pennsylvania is an important part of navigating your own home foreclosure. Before we dive in, let us help you learn more about what foreclosure is.
Understanding The Foreclosure Process In PA
What Is Foreclosure In Pennsylvania Anyway?
Foreclosure is indeed the legal process utilized by lenders to reclaim property that serves as collateral for a loan when the borrower becomes delinquent in their payments. While facing foreclosure can be a challenging and distressing situation, it is essential to understand that it is not the end of the world. Equipping yourself with knowledge about how foreclosure works in Pennsylvania empowers you to navigate the process effectively and strive for the best possible outcome.
When faced with foreclosure, it is crucial to take proactive steps to protect your rights and interests. This may involve seeking professional guidance, exploring available options such as loan modifications or repayment plans, and understanding the foreclosure timeline and procedures in Pennsylvania. By being well-informed and proactive, you can navigate the foreclosure process with greater confidence and work towards a positive resolution.
The Basic Stages Of A Foreclosure In PA
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country. The two ways different states use to foreclose upon a property are judicial sale or power of sale. In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Connect with us by calling (412) 688-6311 or through our contact page to have us walk you through the specific foreclosure process here locally in Pennsylvania.
Under Judicial Foreclosure In Pennsylvania:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes, that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property, usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power Of Sale (Or Non-Judicial Foreclosure) In PA:
- The mortgage lender serves you with papers demanding payment, and the courts are not required, although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure. For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction In PA?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds. Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower. A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower. Here’s a great resource that lists the state-by-state deficiency judgment laws, since every state is different.
Sell My House In Pennsylvania
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Dustin Buys Houses to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale or even eliminate it, even if your home is worth less than you owe.
If you need to sell your house in Pittsburgh PA or anywhere else in the state, we can help you. We’re seasoned homebuyers in PA who offer cash for houses in Pennsylvania as well as guidance for homeowners dealing with challenging real estate-related situations such as foreclosure. We buy properties in Pennsylvania like yours from people who need to sell fast.
Give us a call anytime (412) 688-6311 or fill out the form on this website today!
Another Foreclosure Resource For Pennsylvania Homeowners: