It’s not uncommon for home owners to become anxious and overwhelmed when they incur financial problems that can prevent them from making their monthly mortgage payments. This can happen for any number of reasons: a loss of income, divorce, medical problems or other personal circumstances.
If you are having problems here are some things you can do to avoid foreclosure proceedings in Pennsylvania. Start by clarifying the cause of your financial problems and why you are in foreclosure. Gather your documentation for your monthly income and expenses. You will need this information as you explore your options to try and find alternatives to foreclosure.
Remember, you must stay in your home as you work to find solutions. If you abandon your home, you will find it difficult to get assistance. Contact the customer service department of your mortgage lender immediately.
If you are in foreclosure and you want to retain ownership of your home, there are several options you can pursue.
This strategy works if you see the matter as a temporary problem that will work out in the near future.
Contact your lender as soon as you learn that you will have difficulties making your monthly payments. Work out a schedule with the mortgage lender that allows you to get back on track by making your regular payment and add a little extra each month until you bring it current.
Under this plan, the borrower receives a temporary reduction or a suspension over a specific time period. Payment may increase at a future point to repay the delinquent mortgage amount over a predetermined period of time.
This option may provide for a temporary reduction or suspension of payments, which will be increased at a later point to repay the delinquent amount over a specified period of time
Loan Modification Program
Many lenders offer some type of mortgage modification program you may qualify to participate in to stop foreclosure proceedings in Pennsylvania but you must act quickly. This foreclosure alternative may allow you to refinance your existing mortgage to a loan with a lower interest rate. In some cases, the lender may extend the terms of the loan as well give you a lower interest rate to reduce your monthly payment.
The loan modification program is sponsored by the federal government and is called the Home Affordable Refinance Program (HARP). More than 2.5 million Americans have already taken advantage of HARP to ease their financial burden—and some to stopped foreclosure, and save an average of $250 to $300 per month. To participate in this program, your payment must be current.
If you have a loan that is insured by FHA or any other governmental agency, check with them to find out what solution are available. For example, some mortgage lenders can receive a one-time payment from the FHA-Insurance Fund, which can be applied towards your loan to bring to bring payments to date.
The Commonwealth of Pennsylvania has the Homeowners' Emergency Mortgage Assistance for residents that consist of a loan.
Hire a Pennsylvania Foreclosure Attorney
An attorney who specializes in helping homeowners avoid foreclosure proceedings in Pennsylvania can help you in several ways.
- Help you understand your legal rights
- Negotiate with your mortgage lender
- Complete, track and follow up on all the necessary loan modification paperwork
- Stop a foreclosure sale
Pennsylvania homeowners who have entered the foreclosure pipeline due to a single event, which caused them to become delinquent in with their mortgage payments, can use an attorney to help them buy the time needed to catch up with the late mortgage payments.
If you have entered foreclosure proceedings in Pennsylvania an attorney may be able to help you mount a successful foreclosure defense. An experienced attorney knows what weaknesses to look for in a lender’s case and how to put on a strong defense against foreclosure proceedings in Pennsylvania.