Pennsylvania foreclosure law

Pennsylvania foreclosures follow the judicial process, which means lenders always have to go to court before they can foreclose. Lenders can foreclose on mortgages in default if the borrower is at least 60 days late on payments. The average wait time is 90 days, or about three months.

Judicial foreclosure
A Pennsylvania judicial foreclosure starts after the lender records a Notice of Intent to Foreclose. The notice must be filed at the county where the home is located, and must be sent to the borrower by first class mail. It should also explicitly tell the borrower that the mortgage is in default, and that the lender intends to accelerate the payments if the default is not cured with 30 days. This makes the rest of the balance due immediately, regardless of its value.

If the 30-day deadline isn’t met, the lender can proceed to file a lawsuit. The court then assesses the situation, and if the default is confirmed, it issues a court order to foreclose. Once this is done, the property is sold through a sheriff’s sale in a process appointed by the court.

Right of Redemption and deficiency claims
Borrowers can still cure the default and stop foreclosure up to one hour before the sale. However, once the sale is made, he or she loses all rights of redemption. This means they cannot regain possession of the property, even if they obtain the funds to pay the full price plus costs.

Lenders can also file a deficiency suit within six months after the foreclosure. This suit is to redeem the unpaid balance if the foreclosure sale is not enough to cover the delinquent amount.

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