If you have never been associated with the foreclosure process, you may not know the first thing about how it works. While this is not something you want to find yourself dealing with, the more you know the better off you will be.
The foreclosure process can and will differ from one state to the next. In Pennsylvania, there are five basic stages that make up the timeline.
Philadelphia Foreclosure Timeline
Missed Mortgage Payments
As a borrower, you agree to pay your mortgage as outlined in your loan documents. If you neglect to do so, it will only be a matter of time before you are in hot water with your lender.
Missing one payment will not lead to foreclosure, however, if this becomes a habit you may find yourself faced with this situation.
Public Notice of Foreclosure
If you miss multiple payments and have yet to discuss the cause with your lender, a public notice of foreclosure will be recorded in your county.
Also known as a notice of default, this does not necessarily mean you are losing your home. What it does mean is that your lender is serious about repossessing your property if you don’t figure things out in the near future.
In many states, lenders are required to post the notice on your front door after it is recorded with the county.
During the pre-foreclosure phase, you have time to negotiate with the lender. Explain your financial situation to them, doing your best to come to an agreement that stops the process right here.
From changing the terms of your loan to making missed payments, there are steps you can take, with the help of the lender, to put you in a better position.
Note: during this stage you may want to discuss the possibility of a short sale.
This is the stage when your home is auctioned to the highest bidder. At this point, you are extremely close to losing your home.
If you live in a right of redemption state, you have up until the last minute to work out an agreement with the lender.
In the event that your home is not sold at auction, it will be listed by a realtor as a bank owned property. This is when potential buyers can visit your home and make an offer to the bank, much in the same manner as a conventional sale.
Now that you know the ins and outs of the Philadelphia foreclosure timeline, including the many stages associated with the process, you should have an easier time understanding where you stand with your lender.