What is a Pre-Foreclosure in Philadelphia, PA
In the City of Brotherly Love, homeowners enjoy the benefits of a rich history, culture, and real estate. Yet, there are times when economic challenges arise, pushing homeowners into difficult situations. Pre-foreclosure is one such situation. But what does it mean for homeowners in Philadelphia, PA?
What Is Preforeclosure?
Preforeclosure is the initial stage in the foreclosure process. It begins when a homeowner defaults on their mortgage payments and ends either when the homeowner brings their loan current or when their home goes to a foreclosure auction. During this phase, lenders must follow various state and federal laws to inform homeowners of their rights and options.
Fees the Servicer Can Charge During Pre Foreclosure
Once in preforeclosure, mortgage servicers can charge various fees. These include late payment fees, inspection fees, and other associated costs. It’s crucial to review your loan agreement or consult with a housing counselor to understand these fees. Avoiding unexpected costs can alleviate some of the financial pressures during this challenging time.
Federal Mortgage Servicing Laws and Foreclosure Protections
Homeowners in pre foreclosure are protected by federal laws. One notable protection is from the Real Estate Settlement Procedures Act (RESPA), which ensures that the servicer provides the homeowner with timely and accurate information. This act also mandates that the servicer must correct errors related to the servicing of mortgage loans.
When Can Foreclosure Start?
In Pennsylvania, a lender can’t initiate a foreclosure until the homeowner is more than 120 days delinquent on their mortgage payments. This provides a window of opportunity for homeowners to consider options like loan modification or selling their home to avoid foreclosure.
What Is the Foreclosure Process in Philadelphia, PA?
Once the 120 days have passed, the lender can start the foreclosure process. The first step is typically sending a Notice of Intent to Foreclose, informing the homeowner of the lender’s intent to begin the foreclosure process due to unpaid mortgage payments.
Notice of Intent to Foreclose
Receiving a Notice of Intent to Foreclose is a significant step. It informs the homeowner of the lender’s intention to move forward with foreclosure if the homeowner doesn’t rectify the situation. In Philadelphia, the notice also provides information about the city’s Mortgage Foreclosure Diversion Program.
Work Out a Way to Avoid Foreclosure In a Diversion Program
Philadelphia’s Mortgage Foreclosure Diversion Program is a lifeline for many homeowners. This program connects distressed homeowners with housing counselors and legal services. Here, homeowners can negotiate directly with their lenders to find a solution that avoids foreclosure, such as loan modifications or repayment plans.
Steps You Can Take to Prevent a Foreclosure
- Contact your lender: It’s crucial to keep an open line of communication. Your lender may offer solutions to help you catch up on missed payments.
- Hire a housing counselor: They can provide advice and assistance regarding your mortgage.
- Explore loan modification: Adjusting your loan terms can make your payments more manageable.
- Sell your home: If you feel that keeping up with payments is impossible, consider selling your home. If you’re in a hurry, consider selling to cash home buyers like We Buy Houses Philadelphia to expedite the process.
Understanding pre foreclosure is essential for homeowners facing this daunting situation. Know your rights, explore available resources, and always consider the options that can help you maintain financial stability. If selling your home quickly feels like the best way forward, remember that We Buy Houses Philadelphia is always a phone call away.
We Buy Houses Philadelphia – We Are Ready to Buy Your Home
Facing foreclosure in Philadelphia, PA? Don’t navigate this challenging time alone. Reach out to We Buy Houses Philadelphia at 215-883-4833 to sell your house fast for cash and get out of pre-foreclosure. We’re here to help provide an expedited solution tailored to your unique situation.