Following economic downturns, home foreclosure rates across the state and nation rise dramatically. In 2010, it is expected that over one million American homes may be foreclosed upon. Both the state of Pennsylvania and Allegheny County have experienced a significant increase in foreclosures in recent years.
In Pennsylvania, foreclosures are carried out through the court system. The foreclosure process takes about 10 months, not including the pre-foreclosure period. It is usually initiated after a borrower is greater than 60 days late on payment. Thereafter, the lender typically sends the borrower a letter notifying him of the impending foreclosure.
If the borrower cannot make the financial arrangements to prevent the foreclosure, the lender files a civil suit against the borrower for the amount due. After the borrower is notified of the foreclosure action, he has only about one month to respond before the court can enter a default judgment and direct the property to be sold to recover the amount due. A borrower can still prevent the sale by paying the full amount owed prior to the sale.
Some counties, including Allegheny and Philadelphia, have initiated special programs to address the increasing number of property foreclosures through court intervention, counseling, and conciliation.
If you face losing your home through foreclosure, contact Allegheny Attorneys at (412) 963-8495 today for counseling and representation from experienced lawyers who can help save your home.