Highlights:

Judicial/ Non-Judicial Foreclosure: Only Judicial Foreclosure

Right of Redemption / Deficiency Judgment: No / Yes

Timeline: 90 Days, Can vary depending on individual cases

Deed of Trust / Mortgage as Security Instruments: Mortgage

 

Judicial Foreclosure process:   

In Pennsylvania, only the Judicial Foreclosure process is followed. Before the Foreclosure proceedings begin, the lender is supposed to send a notice of intent to foreclose, to the last known address of the borrower and to the address where the mortgaged property is located. This notice is intent can be sent only after 60 days of the borrower’s default.

The lender should clearly mention in the notice that the borrower is in default of their mortgage payments and unless otherwise this payment is paid within 30 days, the lender would want to foreclose on the property as all the remaining payments will come due immediately.

The lender may proceed to file a lawsuit and request for a foreclosure order against the borrower if the dues are not paid within the thirty day grace period provided to them via the notice.

The court usually verifies the default and gives a foreclosure order once the default is established. The foreclosure sale is conducted by the sheriff according to the established guidelines of the courthouse. The borrower can still pay up all dues and prevent the foreclosure sale till about one hour before the actual foreclosure sale proceedings.

But once the sale is completed, borrowers lose their right of redemption and cannot reclaim their property. The lender has up to six months to file for deficiency judgment (if the value offered by the highest bidder is less than the total loan amount due to them) against the borrower.