Facing Foreclosure in Philadelphia? Sell Your House Fast for Cash

If you have received a notice of default, a foreclosure filing, or a sheriff sale notice on your Philadelphia property, you may have more time to act than you realize. We Buy Houses Philadelphia purchases pre-foreclosure properties throughout the city and the surrounding Pennsylvania communities. We can close in as few as 7 days, pay off your outstanding mortgage balance at closing, and provide you with any net proceeds from the sale.

This page covers the Pennsylvania foreclosure timeline, your options at each stage, what happens at closing, and how a direct cash sale compares to other paths. If you are ready to speak with us now, call 215-883-4833 or request a cash offer online.

Understanding the Pennsylvania Foreclosure Process

Pennsylvania is a judicial foreclosure state, which means the lender must file a lawsuit in court before taking possession of your property. This requirement adds time to the process and creates a window during which you can take action. Understanding each phase helps you identify where you are in the timeline and what options are still available.

Phase 1 · Missed Payments and Act 91 Notice (Months 1–3)

After missing mortgage payments, Pennsylvania law requires lenders to send an Act 91 Notice for federally-related mortgages at least 30 days before filing a foreclosure complaint. This notice informs you of the default, the amount needed to cure it, and housing counseling resources available under Pennsylvania law. Receiving an Act 91 Notice is your earliest and clearest signal to act. At this stage, you have the most options, the most time, and the best chance of protecting your equity.

Phase 2 · Foreclosure Complaint Filed in Court (Months 2–6)

The lender files a complaint in the Court of Common Pleas in the county where the property is located. In Philadelphia, this is Philadelphia County Court of Common Pleas. You have 20 days to respond to the complaint. If you do not respond, the court may enter a default judgment against you. Even at this stage, a fast cash sale is possible and is often the most practical path to stopping the process before a judgment is entered.

Phase 3 · Judgment and Sheriff Sale Scheduling (Months 4–14)

If a judgment is entered, the lender can request that the property be listed for a sheriff sale. In Philadelphia County, sheriff sales are held monthly. The property will be listed on the sheriff sale calendar and advertised publicly in the Philadelphia Legal Intelligencer for three consecutive weeks before the sale date. Once a sale date is scheduled, a cash sale must close before that date to stop the process.

Phase 4 · Sheriff Sale

At the sheriff sale, the property is sold to the highest bidder. Pennsylvania does not provide a right of redemption after the sheriff sale, meaning once the sale occurs, you lose all rights to the property. The former owner receives nothing, regardless of how much equity they had built up. Avoiding the sheriff sale is the primary reason to act early.

Why a Cash Sale Is Often the Best Option During Pre-Foreclosure

When a homeowner is in pre-foreclosure, the traditional listing process is rarely practical. It typically takes 60–90 days to list, market, and close a traditional sale, and that timeline assumes no deal falls through due to inspection contingencies or buyer financing issues. Most homeowners facing a scheduled sheriff sale do not have that kind of time. See how our process works — from initial call to closing in as few as 7 days.

A cash sale with We Buy Houses Philadelphia eliminates these concerns. We do not require financing, we do not require inspections or repairs, and we can close on a timeline measured in days rather than months. The process from initial contact to closing can be completed in 7 to 21 days in most situations.

What Happens to the Mortgage and Liens at Closing

One of the most common questions we receive is how the mortgage and any other liens are handled when we purchase a pre-foreclosure property. Here is exactly what happens.

When we purchase your home, the title company or settlement agent pays all outstanding liens from the sale proceeds at closing. You do not need to bring money to the table or clear any obligations in advance. The liens paid off typically include:

• The outstanding mortgage balance (first mortgage)
• Second mortgages or home equity lines of credit (HELOCs)
• Philadelphia city property tax delinquencies
• Water and sewer charges owed to the Philadelphia Water Department
• Pennsylvania Department of Revenue tax liens
• Any other recorded liens against the property title

After all liens are paid at closing, you receive the remaining net proceeds. If the proceeds fully cover all liens, you walk away with cash. If there is a shortfall, the situation changes (see the next section).

What If the Mortgage Balance Exceeds the Home’s Value?

If you owe more on your mortgage than the property is currently worth, a traditional sale or standard cash sale will not generate sufficient proceeds to pay off the loan in full. This is called being “underwater” on the mortgage. In this situation, there are two common paths forward.

Short Sale

The lender agrees to accept less than the full mortgage payoff in exchange for the sale. This requires lender approval, involves additional documentation, and can take 2–4 months, though some lenders move faster. We have experience purchasing short sale properties in Philadelphia and can work with your lender directly on the approval process. A short sale is reported on your credit as “settled for less than full amount,” which is significantly better than a completed foreclosure.

Deed in Lieu of Foreclosure

You voluntarily transfer the deed to the lender in exchange for release from the mortgage obligation. This avoids the formal foreclosure process but results in loss of any equity. Your lender must agree to this arrangement, and not all lenders accept deed-in-lieu offers. This path is typically faster than a formal foreclosure but slower than a cash sale when a sale is financially feasible.

In either scenario, acting early in the process gives you more options and more negotiating leverage with the lender. Call us at 215-883-4833 to discuss your specific situation. We can review the numbers with you and outline which path makes the most sense given your current mortgage balance and the property’s condition.

Philadelphia and Pennsylvania Foreclosure Resources

The following resources provide free assistance to Philadelphia homeowners facing foreclosure. We are not affiliated with any of these organizations.

• Pennsylvania Foreclosure Prevention Hotline: 1-800-342-0460 — Operated by the PA Housing Finance Agency. Free housing counseling for homeowners in pre-foreclosure.
• Philadelphia Homeowner Emergency Loan Program (HELP): The City of Philadelphia offers emergency loan assistance for homeowners facing foreclosure due to financial hardship. Visit phila.gov for current program availability and eligibility requirements.
• Philadelphia Eviction Prevention Project: Provides free legal assistance for homeowners navigating foreclosure proceedings in Philadelphia County Court of Common Pleas.
• Community Legal Services of Philadelphia: Free civil legal help for low-income Philadelphia residents, including foreclosure defense and mortgage counseling.

These resources are best used alongside, not instead of, exploring your sale options. If your property has equity and your primary goal is stopping the foreclosure and protecting your finances, a cash sale often resolves the situation faster than any assistance program.

Frequently Asked Questions: Pre-Foreclosure Philadelphia

How long does foreclosure take in Pennsylvania?

Pennsylvania is a judicial foreclosure state. The process typically takes 6 to 18 months from the first missed payment to the sheriff sale, though this varies by county and individual case. Philadelphia County foreclosures generally take 9 to 14 months on average. The judicial requirement — meaning the lender must win a court case before proceeding — is what creates this extended timeline and gives homeowners a window to act.

Can I sell my house to stop foreclosure in Philadelphia?

Yes. You can sell your house at any point in the pre-foreclosure process, up to and including the day of the sheriff sale. A fast cash sale can pay off the outstanding mortgage balance at closing, halt the foreclosure process, and allow you to walk away with any remaining equity. The earlier you initiate the sale, the more time there is for the transaction to close without pressure. Request a cash offer to get the process started today.

What is a sheriff sale in Pennsylvania?

A sheriff sale is a public auction of a foreclosed property, administered by the county sheriff’s office after a court judgment is entered for the lender. In Philadelphia County, sheriff sales are held monthly. Properties are listed on the sheriff sale calendar and advertised publicly for three consecutive weeks before the sale. Once the property sells at sheriff sale, the former owner loses all rights to the property and receives no proceeds. Pennsylvania does not have a post-sale redemption period for residential properties.

What is an Act 91 Notice in Pennsylvania?

An Act 91 Notice is a required legal notice under Pennsylvania law that lenders must send homeowners at least 30 days before filing a foreclosure complaint for federally-related mortgages. It identifies the amount needed to cure the default and provides information about HUD-approved housing counseling agencies. Receiving an Act 91 Notice means foreclosure has not yet been filed — you are still in the early pre-foreclosure window with the most options available.

What happens to my credit if I sell before foreclosure?

Selling your home before the foreclosure is completed is significantly better for your credit than allowing the foreclosure to proceed. A completed foreclosure remains on your credit report for seven years and typically causes a drop of 100–150 points or more. While the missed mortgage payments that led to the situation will still be reported, avoiding the foreclosure completion itself prevents the most severe and long-lasting credit damage. A cash sale may allow you to qualify for another mortgage in 2–3 years rather than the 5–7 years typical after a completed foreclosure.

I have equity in my home but cannot make payments. What should I do?

A fast cash sale is typically the best option when equity exists but payments cannot be maintained. We purchase the home, the title company pays off the outstanding mortgage balance at closing, and we release the remaining equity to you in cash at the closing table. You protect your credit, stop the foreclosure process, and walk away with money rather than losing everything to the sheriff sale. Contact us to discuss your situation — we can review the numbers with you.

Can I sell a house in probate to stop foreclosure in Philadelphia?

Yes, with court approval. If an inherited Philadelphia property is in probate and also facing foreclosure, the estate executor or administrator may petition the Philadelphia County Court of Common Pleas to authorize a sale before probate is fully completed. This is a recognized process under Pennsylvania estate law and is commonly used when a property is at risk of foreclosure during estate administration. We work with estate attorneys and executors throughout Pennsylvania and can structure the closing around the probate approval timeline. See our page on selling inherited homes in Pennsylvania for more detail.

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