How foreclosure works in Pennsylvania

The notices you will receive in Pennsylvania, in order

1. Act 91 notice

   Sent by the lender before it can start a foreclosure on most home loans

   This notice tells you about the Homeowners' Emergency Mortgage Assistance Program (HEMAP) and lists counseling agencies near you. You have 33 days from the date on the notice to meet face to face with one of them. If you do, foreclosure is put on hold while your application is reviewed, as long as the time limits are met.

   35 P.S. § 1680.403c

2. Act 6 notice of intention to foreclose

   Sent by registered or certified mail at least 30 days before the lender speeds up the loan or sues

   The notice must say what the default is and exactly how much you must pay to cure it. Keep it, and check the numbers. It also marks the start of your right to cure, which lasts until one hour before bidding at a sheriff's sale.

   41 P.S. §§ 403, 404

3. Complaint in mortgage foreclosure and Notice to Defend

   Filed in the Court of Common Pleas and served on you, generally after you are more than 120 days behind

   This starts the court case. The Notice to Defend on top says you must act within 20 days after you are served, by entering a written appearance and filing your defenses in writing with the court. If you do nothing, the lender can ask for a judgment against you without a trial.

   Pa.R.C.P. 1026

4. County conciliation or diversion notice

   Served with the complaint in counties that run a program

   Some counties send owner-occupied cases to a conciliation conference before judgment. In Philadelphia, the court's Residential Mortgage Foreclosure Diversion Program schedules the conference and bars the lender from entering judgment until the conferences end. Call the hotline on the notice right away and go to every conference.

5. Judgment

   After a default, a court ruling or a trial

   A judgment lets the lender ask the sheriff to sell the home. It does not mean you must move out yet. You still have the right to cure until one hour before the sale.

6. Notice of sheriff's sale

   Posted on the home and served on you at least 30 days before the sale

   A handbill is posted on the property, written notice is served on you, and the sale is advertised. Write down the sale date and call the county sheriff's real estate office to confirm it. If the sale is postponed, the new date can be announced at the sale itself.

   Pa.R.C.P. 3129.2, 3129.3

7. Sheriff's schedule of distribution and deed

   Schedule filed within 30 days after the sale; deed delivered after that

   The schedule shows who gets the sale money, and anything left after liens and costs belongs to you. You have 10 days after it is filed to file exceptions. The sheriff then delivers the deed to the buyer.

   Pa.R.C.P. 3135, 3136

The legal steps in Pennsylvania

1. Missed payments and pre-foreclosure

   Federal rules generally bar the servicer from starting foreclosure until you are more than 120 days behind. Call your servicer and a housing counselor as soon as you fall behind.

   12 C.F.R. § 1024.41(f)

2. Act 91 notice and HEMAP

   For most home loans the lender must send an Act 91 notice before foreclosing. You have 33 days from the date of the notice to meet face to face with a listed counseling agency. If you do, foreclosure is put on hold while you apply for a Homeowners' Emergency Mortgage Assistance Program loan.

   35 P.S. § 1680.403c

3. Notice of intention to foreclose

   The lender must also give at least 30 days' written notice by registered or certified mail before it speeds up the loan or files suit. The notice must say what the default is and exactly what you must pay to cure it.

   41 P.S. § 403

4. Foreclosure complaint

   The lender files a complaint in the Court of Common Pleas and you are served. The papers include a notice to defend, and you have 20 days after service to file a written response. Some counties, including Philadelphia, send owner-occupied cases to a conciliation conference first.

   Pa.R.C.P. 1026, 1141

5. Judgment and notice of sheriff's sale

   After a judgment the lender asks the sheriff to sell the home. A handbill must be posted on the property and written notice served on you at least 30 days before the sale, and the sale is advertised.

   Pa.R.C.P. 3129.2

6. Cure before the sale

   You can cure the default and stop the sale up to one hour before bidding starts by paying the missed payments, allowed fees and costs. You can use this right no more than three times in a calendar year.

   41 P.S. § 404

7. After the sale

   The sheriff files a schedule of how the money will be paid out within 30 days and delivers the deed after that process. If you remain in the home, the buyer must go back to court to get possession.

   Pa.R.C.P. 3135, 3136

Common questions in Pennsylvania