Pennsylvania Foreclosures Legal Questions

While I am unsure if a foreclosure complaint has been filed, or you have merely received pre foreclosure notices, you have several options: defend any foreclosure complaint to avoid a default judgment pursue a loan modification which may result in the loan payments being reduced and the arrears being deferred or forgiven in whole or in part a chapter 13 bankruptcy which affords you up to 60 months to repay the arrears on a monthly basis. I trust this answers your questions but do not hesitate to call or email me on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

Thank you for reaching out as doing so provides you the best opportunity to prevent the sale. There are several options, depending on the facts and circumstances. I trust this answers your initial questions, but do not hesitate to call or email me ASAP on a free initial basis.   Best Regards, Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

If a foreclosure complaint has been filed, the case can proceed until the loan has been reinstated.  Reinstatement involves obtaining a figure in writing from the lender and paying that total amount in full in the manner and by the deadline required in the letter. I trust this answers your question, but do not hesitate to call or email on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read Answer

When credit is harmed from non payment, one effective solution is a bankruptcy.  A bankruptcy eliminates any personal obligation for a mortgage.  Following a discharge in bankruptcy, you will have a fresh start and may begin to rebuild your credit. There is no other way to force the mortgage company to release you of liability and they never will unless someone of means manages to assume the mortgage. I trust this answers your questions, but do not hesitate to call or email me on a free initial basis.  Best Regards, Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com... Read Answer

If your name was not on the deed when the mortgage was obtained, but added later, the entire balance is due pursuant to a due on sale clause.  That clause is rarely, if ever, enforced.  However, it demonstrates that you have no privity of contract with the mortgage company and therefore no rights regarding it.  Your only viable options are to: 1.         wait until they once again allow payments and hopefully resume making them; 2.         refinance the debt which is not an assumption.  You would obtain a new or the same lender to offer a new loan satisfying the old one; 3.         sell the house to assure you at least derive the equity via sale proceeds.     I trust this has been helpful, and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis.     Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read Answer

One key aspect of the right to reinstatement is that the exact reinstatement figure be paid to the penny which can change up to and including the time it is paid.  Indeed, every payoff or reinstatement letter will note that the borrower must call before paying to assure the stated number remains accurate. Often, statement letters are generated which contain those numbers but they are rarely the true numbers which are only obtained through foreclosure counsel who will add in contractual attorneys fees, etc.  If you believe that the reinstatement figure is inaccurate, that would be a defense to the foreclosure case, but my experience is that mortgage company numbers are usually very accurate, if not easily understood. I trust this has been helpful and, if you are in the Delaware Valley, feel free to call or email me on a free initial basis.   Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read Answer

The answer to your question truly depends on the language of the Order.  If it states until further order of court, someone should point that out to the sheriff.  Otherwise, someone should correspond with the court, copying the other party, to alert the court to a potential violation of the Order.  Many people in that situation consider a chapter 13 bankruptcy as a viable solution to the delinquency. I trust this answers your questions, but feel free to call or email me on a free initial basis.   Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read Answer

It sounds like there is some confusion.  While any creditor is free to sell the debt to any other creditor, the terms remain the same.  The only exception is a loan modification which you would have to apply for.  The purpose of the loan modification is to address the arrears and help assure you can make your new monthly payment. I would be happy to discuss this in greater detail on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read Answer

One property will not be affected by another property going into foreclosure, as long as the collateral used to secure the debt is each individual property and each property was not also used to secure the other property than the foreclosure of one property does not affect the other. But foreclosure will certainly affect you, which is why you should file for chapter 7 bankruptcy discharge the debt of the property that will be foreclosed upon so you will not have to deal with the tax consequences of foreclosure. When your house is foreclosed and sold at auction below the mortgage value, the bank can go after you for the deficiency payment or most likely, will report this to the IRS and you will have to pay on this as income. Basically if your mortgage is for $200,000 in your home sells for $150,000, you owe a deficiency of $50,000. The bank can either go after you directly for this $50,000 or reported to the IRS as a loss, and you will be taxed as you made an additional $50,000 for that tax year by the IRS. This is why it is important to speak with an experienced bankruptcy attorney to determine your liability. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob, #student, #loans, #education, #IRS, #taxes... Read Answer

Essentially this means you can pay back the entire mortgage, due to the acceleration clause in almost every mortgage or you could possibly have the opportunity to simply pay back the delinquent payments you have on your mortgage that you have not made. Usually if you need to pay off the entire mortgage when you received that letter, but you might want to consult with your bank. Essentially if you do not pay off the mortgage within 30 days then a sheriff sale will proceed by the laws of your state. You can simply Google foreclosure laws in your own state and you will find with the process will be. You may want to consider hiring a foreclosure defense lawyer to really look at the matter to see if you have any affirmative defenses to your case. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob... Read Answer

If your house is been foreclosed upon and sold at auction, and there is deficiency between the amount of the mortgage and the foreclosure auction sale price, this amount is called a deficiency. The bank may go after you to obtain this deficiency, but in most cases they just reported to the IRS as a forgiving debt. The IRS in turn records this forgiven debt as income for the calendar year in which the amount of the forgiven debt was realized. So basically if you had a $200,000 mortgage and your home sold at auction for $100,000, then you would have a $100,000 deficiency or forgiving debt, the IRS can then turn around and send you a 1099 with $100,000 of income for that calendar year. The best way to have kept this from happening would have been to file a chapter 7 bankruptcy and discharge the debt prior to foreclosure, that way you wouldn't be legally obligated to pay the debt and therefore not legally obligated for the deficiency. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

Once the home is foreclosed upon, and the bank sells the property at auction for less than the amount remaining on the mortgage, then that bank has two options to go after the person for the delinquency or to write it off and inform the IRS of the delinquency. If the bank attempts to go directly after your mother they must follow the laws of your state in collecting that debt. Basically if they take her to court and she has any other properties such as a second home or something that a lien can be attached to such as a piece of property, they may go after her assets in that way. They can go after cars, jewelry or other assets of that nature, such as a bankruptcy trustee would be able to go after. But if they do receive a judgment in court, what ever your state allows them to garnish wages or any other form of income that is a possibility. The most likely result will be that they write off the delinquency and send you a 1099 IRS form. What this means is if the house had a mortgage of $200,000 on it and the property sold at foreclosure sale for $100,000, they would be a delinquency of $100,000. They informed this to the IRS and send you a 1099 form, for your taxes. What this means is you will be forced to pay by the IRS income taxes equal to the amount you would have paid if you had actually made $100,000 in that tax year. This is why it is critical if you're going to be foreclosed upon that you file bankruptcy and have the mortgage discharged prior to a foreclosure sale. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

Your personal assets can be exposed through a note.  Many times, mortgage companies rely on the collateral, only.  However, depending on the equity in the properties or lack thereof, they may seek to collect personally.  You should speak to experienced counsel ASAP to discuss your facts and to determine the best course of action.... Read Answer

You could file a Petiton to Strike the Judgment.  If you had no notice of the proceedings, that would be the appropriate remedy.  However, if you knew about it but whoever represented you failed to act on your instructions, you make have a malpractice claim or for negligence. You could also consider a bankruptcy which woudl in turn depend on all the facts.   ... Read Answer

The rules require that homeowners have notice before a sale.  I assume your parents were served with the foreclosure complaint and the notice of seheriff's sale.  They could have spoken to a lawyer at that time to protect their rights.  Generally, with very limited exceptions, the time to attack a sale is no later than when the sheriff deeds it to the new owner.  Again, assuming that occurred already, they likely have no remedy with their home.  But they may be able to sue the person who they believe committed fraud.     ... Read Answer

If you want time to sell your home, another chapter 13 may help.  Generally, as you've seen, chapter 13 is used to cure a mortgage default.  However, it can also be used to have time to sell your house.  Of course, it all depends on your circumstances, so you should speak to other bankruptcy counsel about your options. ... Read Answer

Mortgages are first a type of contract.  While laws have been enacted that protect the homeowner from quick foreclosure judgments and sheriff sales, their essential rights remain the same.  So, the only relief from the state is known as the Homeowners Mortgage Assistance Program (HEMAP) created in 1983.  It is also known as Act 91.  Applicants may be able to borrow money from HEMAP to help with their mortgages for up to 24 months. You should speak to a lawyer in your area who, like me, offers a free initial consult.  ... Read Answer

How you handle a delinquency is based on your goals.  If the house has equity, and you are looking to get proceeds from a sale, you need to address the transfer from your name first.  If there is little or no equity, there is nothing you need to do with the house as it can simply be foreclosed on. If you wish to sue someone for breach of fiduciary duty or fraud, you can.  However, it is one thing to have a right to sue, and another to actually win and collect.  You should speak to a lawyer to see if you have a case and determine if the likelihood of success and recovery justifies the attorney's fees, costs and time you will spend.  If someone forged someone's name, that is criminal and the county D.A. should be notified.    ... Read Answer

Generally, tenants are not protected in a foreclosure.  The reason is that there is no privity of contract between the tenant and the new owner.  As a practical matter, if the tenant is operating a going concern, it doesn't make sense that the new owner would want the old tenant out.  However, it is a valid concern.... Read Answer

An estate is created when someone, which I assume would be you, files to open an estate.  Once a personal representative or executor is appointed, action can be taken to contest the foreclosure.  I don't know if a complaint was just filed, or a judgment obtained and a sale scheduled.  Either way, time is of the essence. Feel free to call or e-mail me on a free initial basis.... Read Answer

So, no creditor in any state can take any action against you or your assets during a case, unless they receive permission from the bankruptcy court.  That is known as a motion for relief which you will have notice of and an opportunity to defend. Although I only practice in PA, I would think Delaware has a similar lien priority statute protecting the rights of prior lien holders.  That means that a 2nd mortgage company can foreclose but it will always be subordinate to the first company's lien.   ... Read Answer

Although a property may not be occupied, someone owns it.  It is that person or company that you must buy it from.  You can either go to the recorder of deeds office in your county,  search online in some counties like mycountyofMontgomery, or contact a realtor.  You can find them in the phone book or online.  The advantage of having a realtor is they will be able to advise you during the process and prepare the necessary forms.  You can accomplish the same thing with an attorney.   ... Read Answer