Best Mortgage Lawyers in Pennsylvania

About Mortgage Law in Pennsylvania, United States

Mortgage law in Pennsylvania governs the processes and regulations surrounding the use of real estate as collateral for secured loans. A mortgage is a legal agreement where a borrower pledges property as security for repayment of a loan, typically to purchase a home. If the borrower fails to meet the loan obligations, the lender may have the right to take possession of the property through foreclosure. Pennsylvania mortgage law outlines the rights and responsibilities of both borrowers and lenders, protecting interests on both sides and establishing procedures for enforcing mortgage agreements.

Why You May Need a Lawyer

Mortgage issues can quickly become complicated, making legal assistance valuable in several situations. Here are common scenarios where a lawyer can help:

• Entering into a Mortgage Agreement: Reviewing the mortgage documents before signing to understand your obligations and potential risks.
• Facing Foreclosure: If you are behind on payments and at risk of losing your home, a lawyer can advise on foreclosure defense strategies.
• Refinancing or Modifying Loans: Legal help ensures terms are fair and that your interests are protected during negotiations.
• Dealing with Lender Disputes: Representation can be crucial if you believe your lender has acted improperly or violated your rights.
• Resolving Title Issues: Attorneys can help address problems with the legal ownership of your property that can affect the mortgage.
• Short Sales and Deeds in Lieu: Navigating alternatives to foreclosure often involves complicated legal considerations.

Local Laws Overview

Pennsylvania mortgage law has several key aspects to consider:

• Judicial Foreclosure State: Pennsylvania requires foreclosure proceedings go through the court system, which offers homeowners protections and due process.
• Right to Cure Default: Borrowers have the right to resolve, or cure, a default before foreclosure is finalized by paying back past-due amounts.
• Notice Requirements: Lenders must provide notice of intent to foreclose and information about available loss mitigation options.
• Fair Lending Laws: Both state and federal laws prohibit discrimination in mortgage lending based on race, religion, gender, and other protected characteristics.
• Deficiency Judgments: In some cases, if a foreclosed property does not sell for enough to cover the debt, lenders may seek a deficiency judgment for the remaining balance, though strict procedures apply.
• Mortgage Recording: All mortgages must be formally recorded with the County Recorder of Deeds to be enforceable against third parties.

Frequently Asked Questions

What is the typical process for foreclosure in Pennsylvania?

Pennsylvania uses a judicial foreclosure process, meaning the lender must file a lawsuit in court. Homeowners are given notice and have the opportunity to respond, attend mediation, or cure the default before the court grants a judgment of foreclosure.

How long does foreclosure take in Pennsylvania?

The process can take several months to over a year, depending on the case's complexity and court schedules. Borrowers often have time to explore alternatives during this process.

Can I stop a foreclosure once it has started?

Yes, there are ways to stop foreclosure proceedings, such as repaying past-due amounts, negotiating a loan modification, or declaring bankruptcy. Consulting an attorney can help you explore your options.

What is a mortgage modification?

A mortgage modification is a change to the original terms of your loan, such as lowering the interest rate or extending the repayment period, to make payments more manageable. Modifications usually require lender approval.

Do lenders in Pennsylvania have to send a notice before starting foreclosure?

Yes, state law requires lenders to send a 30-day notice of intent to foreclose, giving the borrower time to catch up on payments or seek assistance before legal action begins.

Can I sell my home if I am behind on my mortgage?

In many cases, you can sell your home before foreclosure is completed. If the sale price is less than what you owe, you may need lender approval for a short sale.

What help is available if I am struggling to pay my mortgage?

Options include loan modification, forbearance arrangements, refinancing, or assistance programs from state and federal agencies. Speaking with a lawyer can help you understand your eligibility for these options.

What is a deficiency judgment, and can it happen to me?

If your home is foreclosed and sold for less than the mortgage balance, the lender can ask the court for a deficiency judgment for the difference. Pennsylvania has specific rules and deadlines for seeking these judgments.

Can I be discriminated against when applying for a mortgage?

No. Both state and federal law make it illegal for lenders to discriminate based on race, color, religion, sex, national origin, disability, or familial status.

Why should I consult a lawyer before signing a mortgage?

A lawyer can help you understand the terms and obligations, ensure your rights are protected, spot any potentially unfair or illegal provisions, and answer your questions before you commit.

Additional Resources

• Pennsylvania Housing Finance Agency (PHFA): Offers information and programs for homebuyers, homeowners, and those facing foreclosure.
• Pennsylvania Department of Banking and Securities: Regulates mortgage lenders and provides consumer protection resources.
• Consumer Financial Protection Bureau (CFPB): Provides resources on mortgages, foreclosure avoidance, and fair lending practices.
• Legal Aid Organizations: Pennsylvania Legal Aid Network provides free or low-cost legal help to eligible individuals encountering mortgage or foreclosure issues.
• County Recorder of Deeds: Office where mortgage documents are filed and available for public record.

Next Steps

If you are seeking legal assistance with a mortgage issue in Pennsylvania, consider these steps:

• Gather Documentation: Collect your mortgage agreements, payment records, notices from the lender, and any correspondence related to your mortgage or foreclosure.
• Reach Out Early: Do not delay if you anticipate problems paying your mortgage, as early intervention increases your options.
• Consult a Qualified Attorney: Look for a lawyer with experience in Pennsylvania mortgage and real estate law. Many offer free consultations to discuss your situation.
• Explore Local Resources: Contact the PHFA, local legal aid offices, or your county's Recorder of Deeds for information and possible referrals.
• Stay Informed: Laws and programs can change, so stay updated on your rights and available support. Never ignore notices or legal documents from your lender or the court.

Facing mortgage challenges can be overwhelming, but with the right support and legal guidance, you can make informed decisions to protect your interests and your home.