At the Law Office of Michael P. Forbes, PC, we are well-versed in defending individuals against debt collection abuse and mortgage foreclosures. Our foreclosure defense attorney is driven by a strong desire to help consumers who are in difficult financial situations, and we fight aggressively on their behalf to see that their rights are upheld throughout their legal proceedings.
What Is Foreclosure in Philadelphia?
Foreclosure is the legal procedure where a lender who has loaned money secured by a mortgage, forces the sale of the property in an effort to recover the money due. This money typically includes unpaid interest and the costs involved in the foreclosure process.
When Does the Foreclosure Process Start?
In Pennsylvania, the foreclosure process can begin after only 60 days of late mortgage payments. In this economy, it's becoming increasingly difficult for borrowers to keep up with their monthly payments, especially considering the number of underwater mortgages and sky-high unemployment rates. If you have already received your first or your second foreclosure notice, then you have just a few short months to take action and hopefully avoid foreclosure.
The borrower has just 30 days to cure the default, if they fail to bring the loan current with all past due amounts and fees, then the lender can obtain a court order to foreclose upon the property. Once the lender has obtained a court order, then the sheriff's sale will take place within the guidelines that have been established by the local court.
About Judicial Foreclosures
In the state of Pennsylvania, all foreclosures must go through the judicial process. Non-judicial foreclosures are prohibited in this state. Judicial foreclosures are available in every state and they are required in many states, as they are in Pennsylvania.
With a judicial foreclosure, the sale of the mortgaged property is conducted under the supervision of the court. In such cases, the proceeds of the sale are first allocated to satisfying the mortgage, then other lien holders, and finally, to the borrower if there are any proceeds remaining.
Can You Avoid Foreclosure in Wayne, PA?
- There may be defects in either the documents of the mortgage company or procedures taken by the mortgage company which could defeat the foreclosure action and save your house;
- You can work to get time to either make a deal with the mortgage company to modify your loan or help you make alternative plans;
- If the mortgage was sold or assigned, there are often defects in the document assignment process or misinformation in the lawsuit documents which may lead to a lawsuit filed by you against the mortgage company could either yield you money or help settle the case and save your house
Exploring Alternatives to Foreclosure
Can I Stop Foreclosure by Filing for Bankruptcy?
Filing for bankruptcy is one option can potentially help you stop foreclosure in Philadelphia, provided certain conditions are met. If you're facing the threat of losing your home and are seeking professional assistance, our Philadelphia foreclosure defense attorney Law Office of Michael P. Forbes, PC is here to provide you with high-quality legal representation and compassionate support throughout the process.
Our foreclosure defense team will work diligently to explore all available options for foreclosure defense, including:
- Bankruptcy: When you file for bankruptcy, an automatic stay goes into place, halting all collection actions, including foreclosure procedures, for a period of time. This offers instant relief and buys you time to resolve your financial troubles.
- Loan modifications: This option involves renegotiating the terms of your mortgage with your lender to make your monthly payments more affordable.
- Short sale: With this option, you sell your home for less than the outstanding balance on your mortgage. This helps you avoid foreclosure, minimizing the impact on your credit score.
- Other alternatives, such as negotiations with lenders, a deed in lieu of foreclosure, and more.
We recommend consulting with an experienced foreclosure lawyer near you in Philadelphia. Our skilled attorney has more than 25 years of experience in helping clients navigate complex foreclosure cases throughout Pennsylvania, including Wayne, PA, and the surrounding areas.
Foreclosure vs. Short Sales
What Is the Difference Between Foreclosures and Short Sales?
Foreclosure processes occur when a lender repossess the house, usually against the owner’s will. Short sales are transactions that occur when a mortgage lender allows the person borrowing to sell the property for less than is owed on the mortgage.
If you own a home and find yourself in a financial bind, both foreclosure and short sales can help you get out of a sticky situation.
Length of Time
There is a timing difference between the two, with short sales taking up to one year to fully close, and foreclosures usually being much quicker with recovering money owed as the main motive.
Impact on Credit Score
A short sale can be way less damaging to your credit score than a foreclosure. People who usually go through short sales are able to buy another house without any wait time, depending on if you can secure a second mortgage. Foreclosures, however, will stay on your credit report for a total of 7 years. You will also have to wait 5 years to be eligible to purchase another house.
Save Your Home From Foreclosure
If you stand back and do nothing, you will certainly lose your home to foreclosure. If you want to remain in your home, then you must take immediate action to stop the foreclosure proceedings. You have the ability to fight foreclosure, and by doing so, give yourself a chance at saving your house and your credit.
When the borrower fails to contest the foreclosure of their home, the process takes an average of 120 days; however, it can take longer if the borrower decides to fight the foreclosure. There are many effective ways to do this but it will take a knowledgeable and experienced attorney to follow Pennsylvania court procedure in the appropriate allotted timeline.
How Our Foreclosure Defense Firm Can Help
Talking to your Philadelphia foreclosure lawyer can be one of the smartest steps to take to discuss options if paying for your mortgage is becoming a challenge. Attorney Michael P. Forbes will be able to guide you through the best plan of action based on your specific situation while keeping state laws in mind.
At our firm, Law Office of Michael P. Forbes, PC, our Philadelphia foreclosure lawyer is available to assist you in the event that you are facing the loss of your home at the hands of your mortgage lender. With a lawyer's help, you may be able to come to a resolution that sees you able to permanently remain in your Pennsylvania home.
We have taken defensive measures with most of these mortgage companies:
- Chase Bank
- Bank of America
- Bank of New York
- Wells Fargo
- Deutsche Bank
- Sovereign Bank
- Litton Loan Servicing
- Saxon Loan Services
- Freddie Mac
- Fannie Mae
We have also taken defensive action with these mortgage law firms:
- Phelan, Hallinan and Schmeig
- Goldbeck, McCafferty and McKeever
- Mark Udren
- McCabe, Weisberg
- Martha Von Rosensteihl
- Shapiro and DiNardo
What Is Foreclosure Protection?
Foreclosure Protection or the Foreclosure Prevention Grant Program is put in place for those who are unable to pay their mortgage for several months and are at risk of losing their home. Not all homeowners are eligible for this program.
To qualify, a person must fit certain criteria:
- The homeowner must be able to provide proof of their ownership by tax records or deed
- The homeowner must meet a certain annual income
- The homeowner must be experiencing a lack of financial resources
- The homeowner must be experiencing a financial crisis
If you're searching for a foreclosure defense attorney near you in Wayne, PA, Law Office of Michael P. Forbes, PC is dedicated to providing you with high-quality legal representation, compassionate guidance, and personalized attention. With our extensive experience and track record of success, you can trust us to advocate for your rights and help you navigate the complexities of foreclosure defense.
Turn to Our Philadelphia Foreclosure Attorney
If you are worried that you may lose your home in a foreclosure, contact a Philadelphia foreclosure lawyer to learn more about your rights and options. Attorney Michael P. Forbes may be able to help you avoid the foreclosure process. We will employ all legal resources at my disposal to increase your chances of being able to remain in your home. Our knowledgeable Philadelphia mortgage foreclosure attorney is sensitive to your needs and aggressive to act to protect your home.
Let’s Make Bankruptcy Your Last Resort!
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