Pennsylvania Foreclosure Options Guide for Homeowners

Introduction

Facing foreclosure is stressful, overwhelming, and sometimes embarrassing for homeowners.

If you are behind on mortgage payments, received a notice from your lender, or are worried that foreclosure may be coming, the most important thing to understand is this:

Do not ignore the situation.

Foreclosure does not usually happen overnight. There may be options available, but those options often depend on timing, communication, eligibility, equity, income, hardship, and how quickly you act.

This guide is meant to help Pennsylvania homeowners understand some of the possible options before assuming that selling is the only choice.

I am not an attorney, lender, housing counselor, CPA, or financial advisor. This article is for general information only. If you are facing foreclosure, you should speak with your mortgage servicer, a qualified housing counselor, and appropriate legal or financial professionals as soon as possible.

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Short Direct Answer

Pennsylvania homeowners facing foreclosure may have several options, including contacting their mortgage servicer, speaking with a housing counselor, applying for HEMAP if eligible, requesting a loan modification, asking about a repayment plan, exploring forbearance, reviewing refinance or home equity options, consulting an attorney, selling the home, pursuing a short sale, or considering an investor sale depending on the timeline and equity position.

The Pennsylvania Housing Finance Agency says homeowners who are having trouble making mortgage payments should contact their servicer and PHFA as soon as possible and should not ignore letters or phone calls from the servicer. PHFA also states that mortgage servicers may be able to work with homeowners to explore alternatives to foreclosure.

Selling may be the right option in some cases, but it is not always the first or only option.

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First Step: Do Not Ignore Notices

If you receive a letter from your mortgage company, sheriff’s office, court, attorney, or housing agency, open it and save it.

Those documents may include:

• Important deadlines
• Legal rights
• Required response dates
• Counseling information
• Mortgage balance information
• Amount past due
• Sheriff sale information
• Contact information for next steps

Ignoring notices usually makes the situation harder.

Even if the letter is scary or confusing, it may contain information that could help you understand your options.

PHFA specifically advises homeowners not to ignore letters and phone calls from their mortgage servicer if they are having trouble making mortgage payments.

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Understanding Foreclosure in Pennsylvania

Foreclosure is the legal process a lender may use to take back a property when a homeowner falls behind on mortgage payments and does not resolve the delinquency.

In Pennsylvania, foreclosure involves notices, deadlines, and legal steps. The exact situation can vary depending on the loan, servicer, property, homeowner, and stage of the process.

The earlier a homeowner asks for help, the more options may be available.

That is why timing matters so much.

A homeowner who asks for help after missing one or two payments may have more options than someone who waits until a sheriff sale is scheduled.

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What Is an Act 91 Notice?

Some Pennsylvania homeowners may receive an Act 91 Notice.

An Act 91 Notice is important because it may give the homeowner the opportunity to apply for Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program, also known as HEMAP.

PHFA’s Act 91 Notice states that homeowners may be eligible for state-funded assistance from HEMAP and that applying for HEMAP may temporarily stop a foreclosure action. The notice also says homeowners must have a face-to-face meeting with a HEMAP-approved counseling agency within 33 days of the notice date to apply.

If you receive an Act 91 Notice, do not ignore it.

It may include rights, deadlines, and instructions that could affect your ability to apply for help.

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What Is HEMAP?

HEMAP stands for Homeowners’ Emergency Mortgage Assistance Program.

PHFA says HEMAP was created by Act 91 of 1983 to protect Pennsylvania homeowners who, through no fault of their own, are financially unable to make mortgage payments and are in danger of losing their homes to foreclosure. PHFA also states that HEMAP is a loan program to prevent foreclosure, not a grant, and funds loaned must be repaid.

PHFA states that eligible homeowners must be able to show a reasonable prospect of resuming full mortgage payments within the required timeframe.

This is not something every homeowner will qualify for, but it is important enough that homeowners should know it exists.

If you receive an Act 91 Notice, you should contact a participating HEMAP counselor immediately.

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Options That May Help You Stay in the Home

Not every foreclosure situation has to end in a sale.

Depending on the facts, a homeowner may be able to explore options that help them stay in the home.

Loan Modification

A loan modification may change the terms of the mortgage to make payments more manageable.

This might involve changes to the interest rate, loan term, past-due amount, or repayment structure. Homeowners should discuss this directly with their mortgage servicer.

Repayment Plan

A repayment plan may allow the homeowner to catch up on missed payments over time while continuing regular payments.

This depends on the lender, amount past due, income, and hardship.

Forbearance

Forbearance may temporarily pause or reduce payments in certain situations.

This is usually temporary and does not erase the debt. Homeowners should make sure they understand what happens after the forbearance period ends.

HEMAP

If eligible, HEMAP may help bring a delinquent mortgage current or provide temporary mortgage assistance. PHFA explains that HEMAP is intended to assist qualifying Pennsylvania homeowners facing foreclosure, but it is a loan and must be repaid.

Refinance or Home Equity Options

If the homeowner has equity, income, and credit that support it, refinancing or using home equity may be worth discussing with a lender.

This is not realistic for everyone, especially if the homeowner is already seriously delinquent, but it may be worth asking about early.

Bankruptcy Attorney Review

A bankruptcy attorney may be able to explain whether bankruptcy could pause foreclosure or reorganize debt.

This is legal advice, so homeowners should speak directly with a qualified attorney.

Housing Counseling

PHFA states that Pennsylvania residents are eligible for free housing counseling to help with mortgage delinquency, foreclosure prevention, and managing debt.

A housing counselor may help homeowners understand available options and prepare for discussions with the mortgage servicer.

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Options If Selling Becomes Necessary

Sometimes staying in the home is not realistic.

If selling becomes the best option, the goal should be to preserve as much control, equity, and dignity as possible.

Traditional Sale

If there is enough time and enough equity, a traditional sale on the open market may help the homeowner pay off the mortgage, avoid foreclosure completion, and preserve remaining equity.

This option usually requires understanding:

• Current home value
• Mortgage payoff
• Amount past due
• Timeline before sheriff sale
• Repairs needed
• Market demand
• Estimated net proceeds

Selling Before Sheriff Sale

In some cases, a homeowner may still be able to sell before sheriff sale.

Timing is critical. The closer the sale date gets, the harder this becomes.

A REALTOR®, foreclosure attorney, title company, and mortgage servicer may all need to be involved.

Short Sale

If the homeowner owes more than the home is worth, a short sale may be an option.

A short sale generally requires lender approval because the lender is agreeing to accept less than the full mortgage balance.

This can take time, and homeowners should speak with the servicer and appropriate professionals before assuming it is available.

Investor Sale

An investor sale may be faster than a traditional sale, especially if the home needs repairs or the timeline is tight.

However, homeowners should compare the offer carefully.

A fast sale is not automatically a good sale.

Before signing anything, homeowners should understand the home’s value, payoff amount, fees, timeline, and net proceeds.

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Be Careful With Quick Cash Offers

Some investors are legitimate and can solve real problems.

Others may not be acting in the homeowner’s best interest.

Homeowners facing foreclosure should be careful with anyone who:

• Pressures them to sign immediately
• Asks them to deed the property over without clear explanation
• Promises guaranteed foreclosure relief
• Tells them to stop talking to the lender
• Charges upfront fees for foreclosure help
• Avoids written explanations of terms
• Does not explain net proceeds clearly

The U.S. Treasury warns homeowners to beware of foreclosure rescue and mortgage modification scams, including anyone who guarantees they can save the home, asks for payment in advance, or tells the homeowner to stop contacting the mortgage servicer.

The Pennsylvania Office of Attorney General also provides a scam complaint process for consumers who believe they have been targeted by fraud or suspicious activity.

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Who Should You Talk To?

A homeowner facing foreclosure may need more than one professional.

Depending on the situation, helpful contacts may include:

Mortgage Servicer

The mortgage servicer can explain loan modification, repayment plan, forbearance, payoff, and loss mitigation options.

PHFA or HEMAP Counselor

A HEMAP-approved counselor may help eligible homeowners apply for HEMAP and understand foreclosure-prevention resources. PHFA states that Pennsylvania homeowners receiving an Act 91 Notice should contact a counseling agency listed in the notice.

Foreclosure Attorney

A foreclosure attorney can review legal filings, deadlines, sheriff sale issues, defenses, and homeowner rights.

Bankruptcy Attorney

A bankruptcy attorney can explain whether bankruptcy may pause foreclosure or reorganize debt.

Estate or Probate Attorney

If the property involves inheritance, heirs, a trust, an estate, or tangled title issues, an estate or probate attorney may be needed.

CPA or Tax Advisor

A CPA or tax professional can help explain potential tax consequences related to selling, debt forgiveness, short sale, or investment property issues.

Financial Advisor

A financial advisor may help evaluate the long-term impact of selling, staying, refinancing, or using retirement or savings resources.

REALTOR®

A REALTOR® can help with the real estate side, including home value, market timing, selling options, estimated net proceeds, buyer demand, and whether a traditional sale or investor sale may make sense.

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Downloadable Foreclosure Resource Sheet

I also created a Pennsylvania Foreclosure Resource Sheet that homeowners can use as a simple checklist when reviewing their options.

It includes:

• First steps to take
• Possible options to explore
• Information to gather
• Questions to ask before deciding whether to sell
• Professionals who may be able to help
• Trusted resources to start with

You can download the PDF file here:

Pennsylvania Foreclosure Resource Sheet