Pennsylvania Foreclosure Questions, Answered
Every question we hear from PA homeowners — about the process, stopping it, selling, and what comes after. Can't find yours? Call (215) 392-8767 for a free, honest answer.
The Foreclosure Process in Pennsylvania
How does foreclosure work in Pennsylvania?
Pennsylvania is a judicial foreclosure state. The lender must send Act 6 and Act 91 notices (30-33 days), file a lawsuit in the county Court of Common Pleas, win a judgment, and then have the county sheriff sell the property at an advertised sheriff sale. The full process typically takes 9-18 months, and homeowners have rights and options at every stage.
How long does foreclosure take in Pennsylvania?
Typically 9 to 18 months from the first missed payment to the sheriff sale. Federal rules bar filing until you're 120+ days delinquent, state notices add 30-33 days, court proceedings take months, and sale scheduling with advertising adds more. Philadelphia cases often take longer because of the mandatory Diversion Program.
How many payments can I miss before foreclosure?
Lenders generally cannot file until you are more than 120 days (about four payments) delinquent under federal servicing rules. But don't wait — contacting your servicer or a HUD counselor after the first missed payment preserves the most options.
What is an Act 91 notice?
The pre-foreclosure notice Pennsylvania lenders must send before suing on most owner-occupied homes. It informs you of the HEMAP assistance program and starts a 33-day window to meet with a credit counseling agency — a meeting that pauses the foreclosure while a HEMAP application is reviewed.
What is a sheriff sale?
The court-ordered public auction of a foreclosed property, conducted by the county sheriff after the lender wins judgment. The sale must be advertised for three consecutive weeks, and you must receive at least 30 days' notice of the date. Until the auction happens, you can still reinstate, sell, or otherwise stop it.
Can I get my house back after a sheriff sale in PA?
Generally no — Pennsylvania has no statutory right of redemption after a mortgage foreclosure sheriff sale. (Limited redemption rights exist for some Philadelphia tax sales, which are different.) This is why acting before the sale date matters so much.
Stopping a Foreclosure
How can I stop a foreclosure in Pennsylvania?
Six proven ways: reinstate the loan (pay all arrears — allowed up to one hour before the sheriff sale), apply for HEMAP within 33 days of your Act 91 notice, complete a loan modification, attend your county's conciliation/diversion conference, file Chapter 13 bankruptcy, or sell the home before the sale date. Selling stops the foreclosure completely when the mortgage is paid off at closing.
Can I stop a sheriff sale at the last minute?
Often yes. Act 6 lets most residential homeowners cure the default up to one hour before bidding. Bankruptcy's automatic stay stops a sale instantly. And sales are routinely postponed when a closing or complete loss-mitigation application is pending. But last-minute options are stressful and expensive — call for help the day you get a sale notice, not the week of the auction.
Does a loan modification stop foreclosure?
A complete loss mitigation application generally pauses the foreclosure while under review (federal anti-dual-tracking rules apply when submitted more than 37 days before a sale), and an approved modification cures the default. A denial lets the case resume, so always have a backup plan running in parallel.
Does bankruptcy stop foreclosure in PA?
Yes — filing bankruptcy triggers an automatic stay that immediately halts the sheriff sale. Chapter 13 lets you cure arrears over 3-5 years and keep the home; Chapter 7 typically only delays the sale. Bankruptcy has lasting credit and cost consequences, so consult a bankruptcy attorney before using it.
What is HEMAP and can it save my home?
The Homeowners' Emergency Mortgage Assistance Program is Pennsylvania's permanent state program (run by PHFA since 1983) that makes repayable loans to bring delinquent mortgages current. It fits homeowners with temporary hardships who can realistically resume payments. A timely application pauses the foreclosure during review.
What is the Philadelphia Foreclosure Diversion Program?
A mandatory court program requiring a conciliation conference — with free housing counseling (215-334-4663) — before most owner-occupied Philadelphia foreclosures can proceed to judgment. It pauses the case while alternatives like modifications, repayment plans, or a sale are negotiated.
Selling Your House During Foreclosure
Can I sell my house during foreclosure in Pennsylvania?
Yes — you remain the legal owner until the sheriff's deed is delivered, so you can sell at any point before the sheriff sale. The mortgage (including arrears and fees) is paid off at closing, the foreclosure case ends, and remaining equity comes to you.
How fast can a sale close to beat a sheriff sale?
A cash sale can close in as little as 7 days — there's no lender underwriting or appraisal. The title company orders the payoff immediately, and sales are often postponed while a scheduled closing completes.
Who gets the money when a house in foreclosure is sold?
Sale proceeds first pay the mortgage payoff and other liens, then closing costs — everything left goes to you. This is the key advantage over letting the sheriff sale happen, where auction pricing typically consumes far more of your equity.
Can I sell if I owe more than my house is worth?
Yes, through a short sale — selling at market value with your lender's approval to accept less than the balance. Lenders frequently approve short sales because they net more than auctions. Negotiate a written deficiency waiver as part of the approval.
Will I owe money after a foreclosure or short sale?
Possibly. If a sheriff sale brings less than the debt, the lender has six months under PA's Deficiency Judgment Act to pursue the shortfall. In a short sale or deed in lieu, a written deficiency waiver eliminates this risk — always get it in writing.
What is a deed in lieu of foreclosure?
A voluntary transfer of your home's title to the lender in exchange for cancelling the foreclosure and (ideally) releasing the debt. It fits homeowners with no equity and clean title. If you have equity, selling nets you more — a deed in lieu surrenders the entire property.
Working With Us
How do you determine your cash offer?
We analyze recent comparable sales in your neighborhood, current market conditions, your home's condition, and repair needs, then offer based on what we can realistically sell the property for after improvements. Every number is explained — no black boxes.
Do I pay any fees or commissions?
No. No realtor commissions, no closing costs, no hidden charges. The offer we make is what you walk away with at closing.
What condition does my house need to be in?
Any condition. Major repairs, fire or water damage, code violations, inherited homes full of belongings, tenant-occupied — we buy as-is. You don't fix, clean, or stage anything.
What are my three options with you?
1) Cash offer: close in 7-14 days, fastest and simplest. 2) Creative finance (subject-to or seller financing): close in 14-30 days, typically a higher price. 3) As-is listing: 30-90 days, maximum market value. We recommend the best fit for your timeline — no obligation to choose any.
How do I know you're legitimate?
We're licensed Pennsylvania real estate professionals with an A+ BBB rating, helping PA families since 2010 — over 275 so far. Every closing runs through a licensed title company or attorney. You can verify any PA license at pals.pa.gov.
Does getting an offer obligate me to sell?
No. Consultations and offers are free and no-obligation. Many homeowners use our written options simply to compare against a modification or assistance application — and we'll tell you honestly when keeping the home is your better move.
Credit, Taxes & After the Sale
How badly does foreclosure hurt your credit?
A completed foreclosure typically drops credit scores 100+ points and stays on your report for seven years, with mortgage waiting periods of up to seven years for conventional loans. Alternatives rank better: short sales and deeds in lieu recover faster (2-4 year waiting periods), and a regular sale that pays the loan off — even after missed payments — is the gentlest outcome.
Do I have to move out as soon as foreclosure starts?
No. You own and may occupy the home through the entire court process — typically 9-18 months — and even after a sheriff sale, the new owner must complete a separate ejectment action before any lockout. Never abandon the property early; occupancy preserves options and value.
What happens to extra money if the sheriff sale brings more than I owe?
Surplus proceeds after the debt, liens, and costs belong to you, claimable through the sheriff's schedule of distribution. Beware of surplus-recovery scammers charging huge percentages — you can claim these funds yourself or with low-cost legal help.
Is forgiven mortgage debt taxable?
Debt forgiven in a short sale or deed in lieu can be taxable income federally, unless an exclusion applies (such as insolvency or qualified principal residence rules in effect at the time). Consult a tax professional before closing on any debt-forgiveness arrangement.
How do I avoid foreclosure rescue scams?
Never pay upfront fees for foreclosure 'help,' never sign your deed over as part of a 'rescue' or rent-back plan, and never stop communicating with your lender because someone told you to. Legitimate help — HUD counselors (1-800-569-4287), legal aid (palegalaid.net), and licensed buyers closing through title companies — never works that way.
Want More Depth?
Our free guides cover each topic in detail — the PA foreclosure timeline, Act 91 & HEMAP, stopping a sheriff sale, and more.
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