Stopping Mortgage Foreclosure in Pennsylvania can be accomplished. Many different events can cause people to fall behind on a mortgage. Several examples are job loss, illness, divorce and unexpected expenses. Any one of these can cause you to have financial difficulty. You do not have to sit back and do nothing. You should realize that you can avoid mortgage foreclosure. As a general rule, the earlier you act on your situation, the better the chance have of working things things out and putting a stop to the mortgage foreclosure process. In fact, you can take action even before you receive a notice of default. You can Avoid mortgage foreclosure – There are many ways to get help with stopping foreclosure in Pennsylvania.
- The type of mortgage loan that you have matters.
- Your individual financial circumstances make a difference.
- Whether you can get caught up over a period of months to years.
- Your future financial circumstances will also determine which options make the most sense for you.
We often receive calls from people who call and say I need help with my mortgage. You can call The Law Offices of David M. Offen and learn to stop foreclosure on your home..
Stopping Mortgage Foreclosure & Keeping your Home:
1) Repayment Plan – Making an arrangement to get caught up if you miss a couple of payments due to an unforeseen circumstance your best bet is to first call the lender or mortgage servicer immediately. Tell them what happened and ask if they can make an arrangement with you to allow you time to get caught up. You have nothing to lose by making a call to the lender and asking if they can work with you.
2) Forbearance Plan – This is an option in which the mortgage company or loan servicer allows a temporary reduction or a suspension of your monthly mortgage payments. These missed payments will have to be made up through an increase in your future payment amount. The mortgage company will usually allow six months but in some cases will allow for up to one year to get caught up on the missed payments.
3) Getting a Loan Modification – if you have fallen behind a fair amount, or you realize that you are no longer able to make the regular monthly mortgage payment due to an unforeseen circumstance such as a job loss, or substantial change in expenses or circumstances, you can ask the lender to modify the existing terms of your mortgage. If you are given a modification, it will often look like a new mortgage with a different payment amount which may be less than before, a different interest rate. Typically though, the time remaining on the mortgage debt will be extended. There is foreclosure help for homeowners available.
Please note that if you supply papers to the Mortgage Company or servicer in an attempt to get a loan modification, always keep a copy of any paperwork that you provide to the Mortgage Company or servicer during your modification attempt. Unfortunately mortgage companies have a habit of losing the paperwork that you supply. Also if you send a fax, get a transmission receipt showing that you have faxed documents to the mortgage company’s fax number.
4) Hamp Modification – FHA insured loans may be eligible for a HAMP loan modification with a partial claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current and it may make your mortgage more affordable.
You may qualify if:
- Your loan is at least 4 months delinquent but no more than 12 months delinquent;
- You are able to begin making full mortgage payments going forward
5) Pennsylvania Housing Finance Agency – known as PHFA for short can sometimes provide assistance to homeowners who have become delinquent on their mortgages. Your best bet is to contact PHFA as soon as possible Contact them if you have missed mortgage payments or if you are experiencing a hardship causing you to miss payments. The .Homeowners’ Emergency Mortgage Assistance Program (HEMAP) is a loan program designed to provide financial assistance to residents who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure.
Pennsylvania residents who face losing their primary residence through foreclosure, you may be eligible to receive this type of loan to bring the mortgage up to date. (FHA insured loans do not qualify for this option). Depending on your individual circumstances, you may also be eligible to receive financial assistance with your monthly mortgage payment for up to 24 months from the date of your default.
6) Refinancing – You take out a new loan to pay off your outstanding mortgage loan. Getting mortgages for people with foreclosures is not simple. It is not always easy to refinance if you are behind on the mortgage or if your credit is not perfect. This usually requires you to have some equity in the home. Your payments can be reduced with a refinance.
7) Filing a Chapter 7 Bankruptcy Petition – If you are interested in staying in the property for a period of time while clearing yourself of any debts owed on the property this is an option. If you are fed up with the house, don’t want to or cannot afford to make any more payments, want to wipe out your liability for the mortgage and just want to stay in the property for a number of extra months, this may your best option. Declaring Bankruptcy under Chapter 7 can accomplish the same by stopping the foreclosure of the home for several months and clearing other debts.
8) Filing a Chapter 13 Bankruptcy Petition – Will Bankruptcy stop foreclosure? If you are interested in permanently retaining the ownership of the property this is an option. To Stop Foreclosure Philadelphia lawyers often choose the bankruptcy option. By filing a Chapter 13 Bankruptcy Petition you immediately stop mortgage foreclosure. You are able to file a Plan which gives you up to five years to get caught up on your mortgage delinquency.
Other bills such as credit cards and loans, medical bills and utility bills, and other debts on your credit report can be reduced or completely wiped out. Income taxes can also be included and in many cases reduced and real estate tax arrears can also be included in the Chapter 13 bankruptcy. The Chapter 13 filing puts an immediate halt to the mortgage foreclosure process.
In order to file for protection under Chapter 13 you need to have sufficient family income that allows you to resume paying the regular mortgage payments plus something extra each month. The extra payments are designed to cover any missed mortgage payments and will vary depending upon your individual circumstances.
You are able to file a Chapter 13 Bankruptcy to stop the Sheriff Sale even if the Sheriff Sale is scheduled for the next morning. In addition, Chapter 13 Bankruptcy has the great feature of allowing a second mortgage to be wiped out and treated as an unsecured debt (like a credit card or personal loan) if there is no equity in the property for the second mortgage. Furthermore, you can reduce the interest rate on a car being paid off inside the bankruptcy and can also reduce the debt owed on the automobile in some cases if the auto loan is at least 30 months old.
Finally, Chapter 13 in some circumstances allows for the ability to pay off the total mortgage debt in its entirety inside a chapter 13 plan with the result that once the plan is paid off, you own the home free and clear of any mortgage. If you file Chapter 13 Bankruptcy and comply with the requirements you can achieve your goal of completely stopping mortgage foreclosure.
9) Stopping Mortgage Foreclosure Philadelphia Defense – This consists of defending the foreclosure action. This is usually most effective early on in the process. Depending on your circumstances there are various defenses available. Sometimes by defending the foreclosure you can get extra time to get the missing funds, to sell the property or you may be able to stay in the property for a longer period of time, or cause the mortgage company to reduce their claim.
If you do not have one yet, it is useful to retain an attorney who is familiar with foreclosures and discuss your case in detail with him or her. To stop foreclosure in Philadelphia, if the property is yours and you reside in the property, there is a also a conciliation conference. At this court conference, the Court will attempt to help you work with your lender. If you are served with a foreclosure notice, you should speak to an experienced bankruptcy attorney or foreclosure defense attorney who can advise what is best for you.
10) Motion To Postpone Sheriff Sale – If you are expecting to come up with all the funds that you are in arrears on the mortgage, or you expect to be able to sell the property in the near future, a Motion to Postpone the Sheriff Sale can be filed. This will result in a hearing before a Common Pleas Court Judge in which you or your attorney will tell the Court why you believe that it should stop the Sheriff Sale. Motion to Postpone Sheriffs Sale, is done if the house is scheduled to be sold after the mortgage company has obtained a judgment.
Stopping Mortgage Foreclosure & NOT Keeping your Home:
11) Short Sale or Pre-Foreclosure Sale – With this option, the mortgage company or servicer permits to you to sell the property. You sell it for an amount which is less than the actual amount needed to pay off the mortgage loan. This can help your credit and allows the property to be sold without you having a foreclosure or sheriff sale on your record.
12) Selling the Property – If you cannot afford to continue making payments on the mortgage, but are able to sell the property for a profit, you should. First, it will help protect your credit by showing that the property was sold rather than showing it went to foreclosure. Second, it may allow you to make a profit. Third, once your circumstances improve, you may have an easier time qualifying for a mortgage if you sold your home, rather than letting it go to foreclosure.
13) Giving A Deed In Lieu Of Foreclosure – this allows you to give your property back to the lender or mortgage servicer without you having an outstanding liability on the mortgage debt. This is also known as a voluntary surrender
Stopping Mortgage Foreclosure without being ripped off. Don’t fall prey to a scam – speak with a Foreclosure Attorney to learn How to Save Your Home from Foreclosure:
What is better for one family in one situation may not be better for another family in the same situation. Each person or family’s situation must be evaluated independently. There is no exact rule which applies the same to each situation.
If you’re facing foreclosure, it can be easy to listen to scammers trying to take advantage of you when you are in a vulnerable situation. Warning – Do not pay any money to any company or individual who says they will get you a new loan or stop your foreclosure. These are known as foreclosure rescue scams. Thousands of people have lost many millions of dollars to these companies or individuals who falsely promised to save a person’s home. In the end many of these companies closed up or recommended that the person go to see an attorney. Avoid being a victim of these fraudulent individuals and companies. Speak with a qualified attorney with whom you discuss your situation.You can get mortgage foreclosure help on how to stop foreclosure on your home.
Call today for advice on Stopping Mortgage Foreclosure in Pennsylvania. You can contact The Law Offices of David M. Offen at 215-625-9600. We can review your situation with you and advise you as to the approach that would be best help you avoid foreclosure.