Foreclosure rates are up. In fact, last year alone, Pennsylvania recorded one of the highest increases in foreclosures year over year – 134%! To make this problem even more concerning, rates are expected to climb further and homeowners in Pennsylvania aren’t aware of their options to stop foreclosure. Selling a house in foreclosure in Pennsylvania is one of many options available to residents and property owners in order to stop foreclosure auctions in their tracks.
This article is going to walk you through all of the details and strategies required to successfully tackle a foreclosure and help homeowners reset financially so that they can move on from the stress and hassle. It’s always sound advice to engage legal professionals, which we are not, to make sure you are heading in the right direction and taking the proper steps to get out of foreclosure.
- Foreclosure activity in Pennsylvania is on the rise. With more homeowners falling behind on their payments, it’s important for them to comprehend their options and how to stop foreclosure fast.
- There are many different stages to the mortgage foreclosure process in Pennsylvania. It’s critical to understand where you might be and how you can start to take action today. Don’t lose hope – help is available.
- In order to stop foreclosure immediately, many homeowners decide to sell their house. You need to sell the house to the right buyer so that you can avoid foreclosure auctions and damaging scores on your credit.
Table of Contents
- What Does Foreclosure Mean?
- How do Foreclosure Sales Work in Pennsylvania?
- How to Stop Foreclosure Pennsylvania
- Can I Sell My House in Foreclosure in Pennsylvania?
- Process for Selling Your House in Foreclosure in Pennslyvania
- Options When Selling a House in Foreclosure
- Foreclosure House Sale Pennsylvania FAQ
What Does Foreclosure Mean?
Foreclosure is a legal process that occurs when a borrower is unable to make payments on their loan and the lender attempts to recover the balance of the loan by repossessing and selling the borrower’s property. Are you interested in seeing what foreclosure activity may look like in your area? Zillow is a popular real estate website that allows users to search for and view listings of foreclosed homes, which are properties that have been repossessed by the lender due to the borrower’s default on their loan.
To avoid foreclosure, borrowers may be able to negotiate with their lender to come up with a repayment plan or to sell the property altogether. There are also government programs and non-profit organizations that can help borrowers avoid foreclosure by providing financial assistance or mediation services (there’s more on this free resource in the video at the end of the article).
Common Foreclosure Terminology:
- Foreclosure homes are properties that are in the process of being repossessed by the lender due to the borrower’s default on their loan.
- REO foreclosures, also known as real estate owned foreclosures, are properties that have been repossessed by the lender and are now owned by the lender.
- Foreclosure listings are directories or databases that provide information about foreclosed properties, including their location, price, and details about the property.
The mortgage foreclosure process typically involves several steps, including the borrower missing several loan payments, the lender sending default notices, and the lender initiating legal action to repossess the property. In some states, including Pennsylvania, the foreclosure process is a judicial process, which means that it is handled through the courts. In other states, it is a non-judicial process, which means that it is handled outside of the courts.
If a borrower is unable to pay their loan and the lender forecloses on their property, it can have negative consequences for the borrower, including damage to their credit report and the loss of their home. You might be reading this while you’re in preforeclosure, which is the stage of the foreclosure process that occurs before the lender initiates legal action to repossess the property. During this stage, the borrower may be able to sell the property or negotiate with the lender to avoid foreclosure.
Foreclosure can have significant implications for the real estate market, as it can affect the supply and demand of properties and affect property values. It can also have an impact on the overall economy, as it can lead to a decrease in consumer spending and a decrease in the availability of credit. If you are facing foreclosure, it is important to seek legal advice as soon as possible to understand your rights and options.
How do Foreclosure Sales Work in Pennsylvania?
In the state of Pennsylvania, foreclosure sales are processed as follows:
When a borrower defaults on their loan, the lender may initiate a foreclosure action in order to recover the balance of the loan. Foreclosure in Pennsylvania is a judicial process, which means that it is handled through the courts. The foreclosure process typically begins when the lender files a complaint with the court and serves the borrower with a copy of the complaint. The borrower has the right to respond to the complaint and present a defense. If the borrower does not respond or if the court finds in favor of the lender, a judgment of foreclosure will be entered and the property will be scheduled for a county sheriff’s sale. Are you looking for the location and schedule of a sheriff sale in your county? Look here to see the latest instructions and listings coming up for auction across Pennsylvania.
Preforeclosure homes are properties that are in the process of being repossessed by the lender due to the borrower’s default on their loan. These properties may be sold during the preforeclosure stage in order to avoid a formal foreclosure action.
A county sheriff’s sale is an auction in which the property is sold to the highest bidder. The sale is held at the courthouse and is open to the public. The sale is advertised in a local newspaper for at least three weeks prior to the sale date and is also advertised on the sheriff’s website and at the courthouse. The lender is typically the opening bidder at the sale and may bid the full amount of the outstanding loan balance, plus any costs and fees associated with the mortgage foreclosure process. Other parties may also place bids on the property.
If the property is sold to a third party, the lender will be paid the outstanding balance and any excess funds will be returned to the borrower. If the property does not sell or if the sale does not generate enough funds to pay the outstanding balance, the lender may file a deficiency judgment against the borrower. A deficiency judgment is a court order requiring the borrower to pay the remaining balance of the loan.
It is important to note that the borrower has the right to redeem the property up until the time of the sheriff’s sale. To redeem the property, the borrower must pay the outstanding balance, plus any costs and fees associated with the foreclosure process.
Foreclosed homes, also known as bank-owned homes or real estate owned (REO) properties, are homes that have been repossessed by the lender and are now owned by the bank. These properties may be sold by the bank through a real estate agent or at a county sheriff’s sale.
Foreclosure laws in Pennsylvania are designed to protect the rights of both borrowers and lenders.
How to Stop Foreclosure Pennsylvania
It’s quite possible that the reason you are here reading this article is that you are already in foreclosure or preforeclosure and looking for a way to stop it. There are many different tactics and strategies that a homeowner can deploy to slow, delay, and altogether stop foreclosure. Seek legal advice from an attorney in the form of judicial foreclosure defense if you are planning to take this kind of action on your own. In summary, if you are facing foreclosure and looking to stop a foreclosure sale, then there are some common steps that can be followed.
How to Save Your House From a Foreclosure in Pennsylvania – Process & Options
1. Act Promptly:
If you receive an Act 91 notice, which is a notice of mortgage default, it is important to act quickly. The Act 91 notice is the first step in the foreclosure process in Pennsylvania, and it gives you the opportunity to bring your mortgage account current and avoid foreclosure.
2. Contact Your Lender
If you are having trouble making your mortgage payments, it is important to contact your lender as soon as possible. Your lender may be able to work with you to come up with a repayment plan or to modify your loan terms. Most people overlook this step!
3. Explore your options
There are several options available to help you avoid foreclosure, including government programs and non-profit organizations that provide financial assistance or mediation services. It is important to explore all of your options and choose the one that is best for your situation. One option that many homeowners take is simply selling their house in foreclosure. This is a quick, easy and seamless way to get out of foreclosure.
4. Consult with an attorney
If you are facing foreclosure, it is a good idea to consult with an attorney who can help you understand your rights and options. An attorney can also advise you on the best course of action and represent you in court if necessary.
5. Consider a short sale
If you are unable to bring your mortgage account current and you are unable to sell your home through traditional means or to a cash buyer, then you may be able to sell the property through a short sale. A short sale is a sale in which the lender agrees to accept less than the full balance of the loan.
6. Attend the foreclosure auction
If your property is scheduled for a foreclosure auction, it is important to attend the auction. You may be able to bid on the property yourself or bid through an agent. If the property is sold to a third party, the lender will be paid the outstanding balance, and any excess funds will be returned to you.
7. Consider a deed in lieu of foreclosure
If you are unable to avoid foreclosure and you are unable to sell the property through a short sale or at a foreclosure auction, you may be able to avoid a formal foreclosure action by offering the lender a deed in lieu of foreclosure. A deed in lieu of foreclosure is a legal document in which you transfer ownership of the property to the lender in exchange for the release of your mortgage debt.
It is important to note that if you are unable to avoid foreclosure and your property is sold at a foreclosure sale, it may be listed as a bank-owned or real estate owned (REO) property. These properties may be listed on foreclosure listing sites or through real estate agents.
If you are facing foreclosure in Pennsylvania, it is important to act quickly and seek legal advice as soon as possible. An attorney can help you understand your rights and options and advise you on the best course of action. And a home buyer can solve your problem the quickest!
Can I Sell My House in Foreclosure in Pennsylvania?
If you’re contemplating selling a house in foreclosure in Pennsylvania and don’t have the time or resources to go through the traditional litigation and foreclosure process outlined above, then you might consider selling to a cash home buyer. These buyers are typically investors who are willing to pay cash for houses in any physical or financial condition, so you don’t have to worry about making repairs or doing any staging. More importantly, you also don’t have to catch up on your payments or make amends with your lender. At the consummation of the sale, the mortgage is paid off and a short sale is avoided. However, it’s important to be aware that cash buyers typically offer lower prices than you might get if you were to sell your house through a realtor. The catch with a realtor is that homeowners in foreclosure typically do not have enough time to list their home.
Process for Selling Your House in Foreclosure in Pennsylvania
So how can you sell your house while in foreclosure? Follow these steps:
- Determine the value of the property: It is important to have a good understanding of the value of the property in order to determine the best selling price. You can research similar properties in the area and consult with a real estate agent or appraiser to get an idea of the property’s value.
- Consider a short sale: If you are unable to pay the outstanding balance on your mortgage and you are unable to sell the property through traditional means, you may be able to sell the property through a short sale. A short sale is a sale in which the lender agrees to accept less than the full balance of the loan.
- On-market vs. Off-market: There are several options for listing a property in foreclosure, including listing it on real estate websites such as Zillow or listing it through a real estate agent. Alternatively, you could skip this step and find a cash home buyer (more on that below).
- Market the property: Marketing the property can help to attract potential buyers and increase the chances of a successful sale. You can market the property through online listings, social media, and traditional advertising methods such as open houses and yard signs.
- Review offers: Once you receive offers on the property, it is important to review them carefully. Consider the terms of the offer, including the price, closing date, and any contingencies. You may also want to consider the financial stability and reputation of the potential buyer, as well as their ability to obtain financing.
- Negotiate the sale: If you receive an offer that you are interested in, you can negotiate the terms of the sale with the buyer. It is a good idea to consult with an attorney to ensure that this sale would work with your foreclosure.
- Close the sale: Once the terms of the sale have been agreed upon, the property will go through the closing process. The closing process typically involves signing the sales agreement and transferring ownership of the property to the buyer. The buyer will pay the purchase price, and any outstanding mortgage balance will be paid to the lender.
3 Options You Can Consider When Selling a House In Foreclosure
List With An Agent
As a homeowner facing foreclosure, you have several options for selling your house. One option is to list the property with a real estate agent. This option can be beneficial if you have a lot of equity in the property and you are able to sell it for a good price. However, listing with an agent can be time-consuming and costly, as you will have to pay a commission to the agent. It’s often the case with foreclosures that any and all money saved, such as that of the agent’s commission, is truly money back in your pocket. If you’re facing foreclosure you likely cannot afford the services of an agent. And on top of that, a realtor simply cannot sell your house fast enough to pay off the mortgage before the property is foreclosed on by the bank.
For Sale By Owner
Another option is to sell the property yourself, also known as “for sale by owner.” This option can save you money on commissions, but it can also be challenging, as you will have to handle all of the marketing and sales efforts yourself. So while you do save money compared to listing with an agent, you also still won’t be able to close the deal fast enough.
Cash Home Buyer
A third option is to sell the property to a cash buyer. Selling to a cash buyer can be a quick and convenient option, as cash buyers are typically able to close on the sale quickly and without contingencies. This option can be especially beneficial if you are facing a tight deadline, such as an upcoming foreclosure sale.
One of the main advantages of selling to a cash buyer is that you can avoid the hassle and uncertainty of the traditional real estate process. With a cash buyer, you do not have to worry about financing or appraisals, and you can close on the sale much faster than you could with a traditional sale.
Another advantage of selling to a cash buyer is that you can often sell the property “as is,” which means that you do not have to make any repairs or updates to the property before the sale. This can save you time and money, and it can also be a good option if you are unable to make repairs due to financial or time constraints.
Overall, selling to a cash buyer can be a convenient and hassle-free option for homeowners facing foreclosure. If you are interested in this option, it is a good idea to research different cash buyers and compare their offers to determine the best option for you.
Get Your Cash Offer Today!
Foreclosure House Sale Pennsylvania Frequently Asked Questions
How long can I live in my house after foreclosure PA?
Foreclosure in Pennsylvania is a judicial process, which means that it is handled through the courts. The length of time you can live in your house after a foreclosure depends on the specific circumstances of your case and the actions of the lender. In some cases, you may be able to negotiate a repayment plan or a loan modification with the lender and avoid foreclosure. If the lender obtains a judgment of foreclosure and schedules a sheriff’s sale, you will generally have to vacate the property within a few weeks of the sale.
Is there a foreclosure redemption period in Pennsylvania?
In Pennsylvania, borrowers have the right to redeem the property up until the time of the sheriff’s sale. To redeem the property, the borrower must pay the outstanding balance, plus any costs and fees associated with the foreclosure process. If the property is sold to a third party at the sheriff’s sale, the borrower may not be able to redeem the property.
What happens after a sheriff’s sale in PA?
After a sheriff’s sale in Pennsylvania, the property is sold to the highest bidder. If the property is sold to a third party, the lender will be paid the outstanding balance, and any excess funds will be returned to the borrower. If the property does not sell or if the sale does not generate enough funds to pay the outstanding balance, the lender may file a deficiency judgment against the borrower. A deficiency judgment is a court order requiring the borrower to pay the remaining balance of the loan. If the property is sold to the lender, the lender may repossess the property and sell it to a third party.
Can I sell my house to avoid foreclosure?
Yes, you may be able to sell your house to avoid foreclosure in Pennsylvania. If you are able to sell the property for an amount that is sufficient to pay off the outstanding balance of your mortgage, you may be able to avoid foreclosure. You may also be able to negotiate a short sale with your lender, in which the lender agrees to accept less than the full balance of the loan.
How do you get around foreclosure?
There are several ways to get around foreclosure in Pennsylvania. One option is to negotiate a repayment plan or a loan modification with your lender. This can allow you to bring your mortgage account current and avoid foreclosure. You may also be able to sell the property to avoid foreclosure, either through a traditional sale, a short sale, or to a cash buyer. If you are unable to avoid foreclosure, you may be able to redeem the property up until the time of the sheriff’s sale by paying the outstanding balance, plus any costs and fees associated with the foreclosure process.
The findings and information in this article are focused on Pennsylvania, however, it is applicable in many locations nationwide! Signature Properties is a full-service home buyer that purchases foreclosure properties to help homeowners in Erie, Scranton, Philadelphia, Pittsburgh, Wilkes Barre, West Chester, Lancaster as well as Luzerne & Lehigh Counties.
Best Way To Sell My House Pennsylvania
Signature Properties provides the easiest and simplest way to sell your house in Pennsylvania. We buy houses through fair and honest cash offers.🙂 Whether you are avoiding the bank from foreclosure, coming into an inheritance, going through divorce or any other situation – we have real estate solutions to get you the outcomes you desire when you sell your house to us. We help homeowners with costly home repairs, mounting liens, code enforcement violations and even vacant homes. Are you trying to sell your house in surrounding areas or other counties and states near Pennsylvania? We buy properties in New Jersey and Delaware as well as many other towns! In fact, we buy homes all over Pennsylvania. Come find out why selling to an investor is becoming the newest and best way to sell your house in Philadelphia in 2023 and beyond!