Feeling that pit in your stomach because foreclosure is looming? You are not alone, and it is completely understandable to feel overwhelmed. Many Pennsylvanians face this tough situation, but there are ways out.

You will learn about real strategies for how to stop foreclosure in Pennsylvania and get back on your feet. Knowing your options is the first step toward finding a solution, and figuring out how to stop foreclosure in Pennsylvania starts right now.

Note: This content is for informational purposes only and does not constitute legal advice. Bankruptcy and foreclosure laws vary based on individual circumstances. Please consult a qualified attorney licensed in Pennsylvania to evaluate your specific situation.

Understanding the Foreclosure Process in Pennsylvania

So, what actually happens when a mortgage foreclosure starts in Pennsylvania? It is a serious process, but knowing the steps can help you prepare. Pennsylvania is a judicial foreclosure state, which means your mortgage lender must go through the court system to foreclose on your home.

The foreclosure process usually begins after you have missed a few mortgage payments. Your lender, or mortgage company, will likely try to contact you first to discuss your missed mortgage payments. If things do not get sorted out, they will send official notices regarding the foreclosure action.

One important notice is the Act 6 Notice, also known as an Intent to Foreclose letter. This notice, mandated by Pennsylvania law, gives you 30 days to catch up on your mortgage payment or seek mortgage assistance. You might also get an Act 91 Notice, which tells you about the Homeowners’ Emergency Mortgage Assistance Program (HEMAP).

The Pennsylvania Housing Finance Agency (PHFA) runs HEMAP, offering loans to eligible homeowners; this is a critical assistance program. Do not ignore these letters; they are crucial warnings and a vital part of the foreclosure proceedings. To ignore letters can significantly limit your future options to avoid foreclosure.

If you cannot fix the situation after these notices, the lender can file a foreclosure complaint with the court, formally starting the foreclosure proceedings. You will be served with this complaint and have a certain amount of time to respond. If you do not respond, or if the court rules in favor of the lender, a judgment will be entered, allowing the lender to schedule a Sheriff Sale, also known as a foreclosure auction, where your home could be sold. The entire foreclosure process can take several months, but acting fast is always your best course of action.

First Steps When Facing Foreclosure

Okay, you have gotten a notice, or you know you are falling behind on your mortgage loan. What is the absolute first thing you should do? Do not stick your head in the sand and hope the problem disappears.

Ignoring the problem will not make it go away; it will only make it worse and reduce your options to avoid foreclosure. Your very next step should be to contact your lender or loan servicing department. Yes, it can be a scary call, but they often have programs, such as a forbearance plan or repayment plan, to help homeowners who are struggling with their financial situation.

Lenders might prefer working with you over going through a costly mortgage foreclosure. Be honest about your financial situation and your willingness to explore solutions. Then, start gathering your paperwork; this is part of the main content of your response strategy.

This means finding your mortgage documents, income statements (pay stubs, tax returns), bank statements, and a list of your monthly expenses. Having all this ready will make it easier when you discuss options with your lender or a housing counselor. Really understand your mortgage terms too – what is your interest rate, what type of mortgage loan do you have, and what is your current mortgage balance?

Exploring Your Options for How to Stop Foreclosure in Pennsylvania

Now for the hopeful part: you do have options to prevent a foreclosure sale. There is not just one way to tackle this. Let us look at the different paths you might be able to take for foreclosure prevention and retaining ownership of your home.

Mortgage Reinstatement

What if you could just hit a reset button on your missed mortgage payments? Mortgage reinstatement is kind of like that. It means you pay the total past-due amount, including any late fees or lender costs, all at once.

Once paid, your mortgage loan is current again, and you continue making your regular mortgage payments as if nothing happened. This option can stop a foreclosure right up until the foreclosure sale in some cases, but you need to check your loan documents and current Pennsylvania law. This path is often a good idea if feasible.

This sounds great, right? It is, if you can get the funds. Maybe you had a temporary setback, a brief financial hardship, and now have the money from savings, a family loan, or a new job. But, if getting a large lump sum is impossible, this one might not be for you, but it is good to know it is on the table for retaining ownership.

Forbearance Agreement

A forbearance agreement is when your lender agrees to a temporary reduction or suspension of your mortgage payments for a set period. Think of it as a short breather, a type of forbearance plan. This can be really helpful if you are facing a short-term financial hardship, like a sudden job loss or medical emergency, and you expect your financial situation to improve soon.

How does it work? Your lender will want to understand why you need forbearance and for how long. At the end of the forbearance period, you will have to make up the missed or reduced payments, so this is not a permanent solution to mortgage delinquency.

This might mean a lump sum payment, adding it to your regular payments over time, or pursuing a loan modification. Make sure you understand what happens when the forbearance ends because it does not erase the debt, it just pauses it. Getting the terms in writing is very important.

Repayment Plan

A repayment plan is another way to catch up on missed mortgage payments over time. Instead of one big payment like with reinstatement, your lender might agree to spread the past-due amount over several months. You would pay your regular mortgage payment plus an extra amount each month from your monthly income until you are current.

This payment plan is often more manageable than reinstatement if you do not have a large sum of cash. Lenders might offer this if you have missed only a few payments and can show you can handle the increased monthly payment. Like forbearance, you need to be realistic about whether you can afford the higher monthly payments for the duration of the plan and commit to the repayment plan diligently.

Loan Modification

A loan modification is a more permanent change to one or more terms of your mortgage; it’s a form of loss mitigation. This is not just a temporary pause; it actually alters your loan agreement. The goal of a mortgage modification is to make your monthly payments more affordable for the long haul, helping you avoid foreclosure.

Lenders are often willing to consider this because it is usually less costly for them than a foreclosure. What can be modified? Several things. They might lower your interest rate, extend the loan term (e.g., from 30 to 40 years), or sometimes, they might add the past-due amounts to your loan balance.

In rarer cases, they might agree to a principal reduction, though this is less common. A HAMP modification, though less prevalent now, set a precedent for some types of modifications. You will typically need to submit a detailed application with financial information, often called a Request for Mortgage Assistance (RMA).

They want to see that you have had a significant change in circumstances but can now afford a modified payment. This process can take time, so apply as soon as possible if you think it is a fit for you. It’s a common path for homeowners with delinquent mortgages looking for a sustainable solution.

Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program (HEMAP)

We touched on this earlier, but HEMAP deserves its own spot because it is a key mortgage assistance program for Pennsylvania residents. This Pennsylvania state program, the Homeowners’ Emergency Mortgage Assistance Program, can give bridging loans to homeowners who are behind on their mortgage due to circumstances beyond their control. It is specifically for Pennsylvanians and can be a lifesaver if you qualify.

HEMAP is administered by the Pennsylvania Housing Finance Agency (PHFA), a crucial housing finance agency in the state. Who might qualify? Generally, you must have received an Act 6 or Act 91 notice, meet certain income limits, and have a reasonable prospect of resuming your regular mortgage payments within a certain timeframe, perhaps after an extra month or two of assistance.

The HEMAP loan helps bring your mortgage current; it’s a specific type of loan program designed for emergency mortgage assistance. You will then have a separate, often low-interest, HEMAP loan with the Pennsylvania Housing Finance Agency (PHFA) to repay. Check their website for the latest eligibility details and how to apply; it is a really valuable resource specific to Pennsylvania housing and finance needs.

Short Sale

A short sale happens when your lender agrees to let you sell your home for less than what you owe on the mortgage. You then give the sale proceeds from your real estate to the lender, and they might forgive the remaining mortgage balance. This is an option if your home is worth less than your mortgage balance (you are “underwater”) and you can no longer afford the payments.

Why would a lender agree to this? Because a short sale can be quicker and less expensive for them than going through the full foreclosure process, including a foreclosure auction, and then trying to sell the property themselves. You will need to prove hardship and get your lender’s approval, which can be a complex step in the foreclosure diversion process.

It can be a complicated process, often needing a real estate agent experienced in short sales. While it does negatively affect your credit, it is generally considered less damaging than a full mortgage foreclosure. It is critical to get in writing whether the lender will forgive the deficiency—the remaining debt after the sale.

Deed in Lieu of Foreclosure

A “deed in lieu” is when you voluntarily transfer ownership of your property back to the lender to satisfy your mortgage debt and avoid foreclosure. Think of it as handing over the keys. The lender must agree to accept the deed, and they typically will not if there are other liens on the property (like a second mortgage or unpaid property tax).

This option can save you from the public process of a foreclosure sale and is another form of foreclosure diversion. Like a short sale, it is usually less damaging to your credit than a full foreclosure. However, it does mean giving up your home, so retaining ownership is not possible with this choice.

Some lenders might still pursue you for a deficiency judgment (the difference between the home’s value and what you owed) unless you get a written agreement that they will not. Legal advice is recommended before signing any such agreement.

Filing for Bankruptcy

Bankruptcy is a serious legal step, but it can be a powerful tool to stop foreclosure. The moment you file for bankruptcy proceedings, an “Automatic Stay” goes into effect. This court order immediately stops most creditors, including your mortgage lender, from continuing collection activities, including a foreclosure sale, effectively halting foreclosure proceedings temporarily.

This gives you breathing room. There are mainly two types of personal bankruptcy. Chapter 13 bankruptcy allows you to reorganize your debts and create a plan to repay them over three to five years. If you have a regular income, you can include your mortgage arrears, or missed mortgage, in your Chapter 13 plan and catch up on them over time, allowing you to keep your home and address your delinquent mortgages.

Chapter 7 bankruptcy, or “liquidation” bankruptcy, might only delay a foreclosure. While it can wipe out many unsecured debts, if you want to keep your home, you generally still need to be current on payments or work out a deal with the lender. Deciding on bankruptcy is a big step, often considered after other loss mitigation efforts have failed.

If you are in Westmoreland County or nearby, talking to an experienced Greensburg bankruptcy attorney can help you understand if this is the right path for your specific situation, and share how to stop foreclosure in Pennsylvania using this method. They can explain the nuances and guide you through the process, offering crucial legal services.

Getting Help from a Bankruptcy Attorney

You don’t have to face overwhelming debt or foreclosure alone. If you’re struggling with monthly payments or have received legal notices, it may be time to seek professional legal guidance. While nonprofit housing counselors can help with basic options, there are times when consulting a bankruptcy attorney is the most appropriate next step.

If foreclosure proceedings have begun, or if you are dealing with complex financial issues like credit card lawsuits, repossessions, or wage garnishments, a bankruptcy attorney can help you understand your rights and outline legal strategies that may offer relief. This is especially important if you’re considering whether Chapter 7 or Chapter 13 bankruptcy might be the right solution for your situation.

A local attorney, such as a Greensburg bankruptcy lawyer, can walk you through the process, explain how Pennsylvania bankruptcy laws and federal protections apply, and help you evaluate which approach may stop creditor actions and protect your home or income. Having an experienced attorney by your side ensures your filings are accurate and complete, which can be critical for a successful outcome.

In some cases, you may qualify for free or low-cost legal services through programs like the Pennsylvania Legal Aid Network (PLAN), which serves individuals who meet income and eligibility requirements.

Watch Out for Foreclosure Rescue Scams

When you are desperate, you are vulnerable, and scammers know this. Unfortunately, there are many “foreclosure rescue” scams out there that prey on homeowners facing mortgage delinquency. They promise to save your home but often just take your money and leave you worse off.

You need to be very careful. What are some red flags? Be wary of anyone who asks for large fees upfront before doing any work.

Be suspicious of companies that tell you to stop making mortgage payments or to pay them directly instead of your lender. And definitely be cautious if someone “guarantees” they can stop your foreclosure; no one can make that guarantee. If it sounds too good to be true, it probably is.

Reputable help, like from HUD-approved housing counselors or the Pennsylvania Legal Aid Network, is often free or low-cost. The Federal Trade Commission (FTC) has good information on recognizing and reporting these scams, protecting Pennsylvania residents from further financial hardship.

Moving Forward After Averting Foreclosure

If you successfully used one of these options to stop foreclosure, that is a huge relief. But the journey is not quite over. Now it is time to focus on staying on track and rebuilding your financial health. This is really important for your peace of mind and future stability.

One of your first priorities should be working on your credit. Foreclosure issues, even averted ones, can impact your credit score, so check your credit report for any errors. Making all your payments on time, every time, is the best way to improve your score. It might take time, but consistent good habits pay off, especially with your monthly payments.

It is also smart to stick to a realistic budget. Know where your money is going each month. Look for ways to cut expenses or increase income, even slightly, to better manage your overall financial situation.

Finally, keep lines of communication open with your lender or loan servicing department. If you ever anticipate having trouble again with your mortgage payment, reach out to them early. They are often more willing to work with you if you are proactive and honest about any difficulties.

Working With Bumbaugh | George | Prather | DeDiana on Foreclosure and Bankruptcy

If you’re facing foreclosure or considering bankruptcy in Pennsylvania, you don’t have to navigate these decisions alone. At Bumbaugh | George | Prather | DeDiana, we help individuals and families across Greensburg, Westmoreland County, and Southwestern Pennsylvania explore their legal options with clarity, compassion, and experienced guidance.

Whether you’re looking for a way to stop a sheriff sale, apply for mortgage assistance, or explore Chapter 13 bankruptcy to save your home, our attorneys can help you:

  • Understand Pennsylvania foreclosure laws, court timelines, and lender obligations
  • Evaluate mortgage workout options, including forbearance, loan modification, or repayment plans
  • Determine if Chapter 7 or Chapter 13 bankruptcy may help you pause foreclosure and reorganize debt
  • Prepare and file bankruptcy petitions accurately and on time
  • Communicate with creditors, servicers, and the court on your behalf
  • Protect exempt assets and minimize long-term financial damage

Our legal team has deep local knowledge of how Pennsylvania courts handle foreclosure and debt relief matters, and we can help you avoid common pitfalls that delay or derail your case. If you’ve received an Act 6 or Act 91 notice, or if you’re behind on mortgage payments, now is the time to speak with an attorney.

Conclusion

Facing foreclosure can feel overwhelming, but you are not out of options. Knowing how to stop foreclosure in Pennsylvania starts with understanding your rights and acting quickly. Every day that passes may limit your choices, so don’t wait to take the next step.

One of the most important things you can do is reach out to a qualified foreclosure or bankruptcy attorney. An experienced lawyer can help you evaluate your situation, explain your legal rights, and recommend the best course of action, whether that’s applying for HEMAP, negotiating with your lender, or filing for bankruptcy. Speaking with an attorney early can help you avoid missteps and may even be the key to keeping your home.

You don’t have to go through this alone. With the right guidance, you can take back control and work toward a more stable financial future.

FAQs About How to Stop Foreclosure in Pennsylvania

What is the first step to stop foreclosure in Pennsylvania?

The first step is to take action as soon as you fall behind on mortgage payments. Contact your mortgage servicer immediately to ask about loss mitigation options, such as forbearance, repayment plans, or loan modifications. You should also speak with a housing counselor or foreclosure attorney to review your legal rights.

Can filing for bankruptcy stop a foreclosure in Pennsylvania?

Yes. Filing for Chapter 13 or Chapter 7 bankruptcy typically triggers an automatic stay, which pauses most collection actions, including foreclosure. Chapter 13 may allow you to catch up on missed payments over time while keeping your home.

What is a mortgage reinstatement, and how does it help?

Mortgage reinstatement means paying all past-due amounts, including late fees and legal costs, to bring your loan current. If you can make this payment in full, it may stop foreclosure, even up to the date of the sheriff sale in some cases.

What is Pennsylvania’s HEMAP program, and who qualifies?

HEMAP, the Homeowners’ Emergency Mortgage Assistance Program, is a Pennsylvania state program offering loans to eligible homeowners who are behind on payments due to financial hardship. If you’ve received an Act 91 Notice, you may apply for HEMAP through the Pennsylvania Housing Finance Agency (PHFA).

Do I need an attorney to stop foreclosure in Pennsylvania?

While not legally required, an experienced foreclosure or bankruptcy attorney can explain your options, represent you in court, and help protect your rights. Legal guidance may be especially important if a sheriff sale is scheduled, or if you are considering bankruptcy or other legal defenses.