Pennsylvania Foreclosure Laws & Timing
The state of Pennsylvania requires foreclosures to be approved in court. This is known as a judicial foreclosure, a process mandated in about half of all states. The timing associated with a foreclosure is heavily influenced by court notice and scheduling requirements and, since 2008, the dramatic increase in foreclosures nationwide.
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Pre-Foreclosure
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Pennsylvania law prevents lenders from initiating the foreclosure process within the first 60 days of missing one or more payments. It is common for the lender to mail the borrower a Notice of Intent to Foreclose during this period. This document puts the borrower on notice that he is in "serious default" and has 30 days to bring the loan payments current or face loan acceleration, which is demand for the full loan balance, and foreclosure.
Lawsuit
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If the borrower fails to bring the loan current, the lender files a lawsuit against him in court based on his failure to repay the loan as agreed upon in loan documents. The lender files a complaint and also records a lis pendens -- notice of lawsuit pending -- with the county recorder. It serves the borrower the complaint, which offers the borrower a limited amount of time to formally respond. If the borrower fails to respond, the lender asks the court for a judgment against him. If he responds, a lengthier court action takes place. Assuming the lender wins the case. the court issues a judgment against the borrower which authorizes the sale of the property.
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Sale
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The county sheriff posts the property and delivers a notice of the sale to the borrower at least 30 days before the sale. The sheriff also places the notice for publication in both a local and a legal newspaper for three consecutive weeks before the sale. The sheriff conducts the sale, which is a public auction. The highest bidder is awarded the property. If the bids do not at least meet the outstanding loan balance, the lender takes title.
Time Frame
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Foreclosure.com uses a 120-day time frame for a Pennsylvania foreclosure. The Pennsylvania Housing Finance Agency uses a 240-day time-frame in explaining the process. RealtyTrac gives the process 270 days. These are likely estimates based on required notices and movement through the court system without delay. In fact, foreclosures averaged 506 days as of early 2011, as reported by mortgage servicer and data analysis firm LPS.
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References
- RealtyTrac: Foreclosure Laws and Procedures by State
- RealtyTrac: Pennsylvania Foreclosure Laws
- The Pennsylvania Code; Section 7.4. Notice of Intention to Foreclose Mortgage
- Pennsylvania Housing Finance Agency; Default and Foreclosure Timeline
- Foreclosure.com: How Are Mortgage Liens Treated in Pennsylvania?
- LPS Mortgage Monitor; February 2011 Mortgage Performance Observations
- Photo Credit Comstock/Comstock/Getty Images
