Understanding the foreclosure process in Pennsylvania, Connecticut, New Jersey, & New York is an important part of navigating your own mobile home foreclosure.
What is Foreclosure Process in Poconos?
Foreclosure is a legal process by which a lender can repossess and sell a property when the borrower has failed to make their mortgage payments. If you are a homeowner in the Poconos and are struggling to keep up with your mortgage payments, it is important to understand the foreclosure process in your area.
In the Poconos, the foreclosure process typically begins when a borrower is 60 days behind on their mortgage payments. The lender will then file a complaint in court and serve the borrower with a copy of the complaint. The borrower will have a certain amount of time to respond to the complaint, usually around 30 days.
If the borrower does not respond to the complaint or if the court finds in favor of the lender, a judgment of foreclosure will be issued. This means that the lender can proceed with the sale of the property at a public auction.
In the Poconos, foreclosures are typically conducted by the Sheriff’s Office. The Sheriff’s Office will advertise the auction in the local newspaper and post notices at the courthouse and other public places. The auction will take place at a specified time and location, and the property will be sold to the highest bidder.
After the sale, the new owner will take possession of the property, and the former homeowner will be evicted if they have not already vacated the premises. It is important to note that in the Poconos, the borrower has the right to redeem the property up until the time of the sale by paying off the outstanding balance of the mortgage.
If you are facing foreclosure in the Poconos, it is important to seek legal advice and explore all of your options for avoiding foreclosure, such as loan modifications, short sales, or other forms of debt relief.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
Connect with us by calling (570) 775-5777 or through our contact page to have us walk you through the specific foreclosure process here locally in Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster.
Either way, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Sell Your Mobile Home Fast to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your mobile home is worth less than you owe.
If you need to sell a property near Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster, we can help you.
We buy mobile homes in Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster Pennsylvania, Connecticut, New Jersey, & New York like yours from people who need to sell fast.
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Another Foreclosure Resource For Shelton, Stroudsburg, Allentown, Reading, Levittown, Philadelphia, Bethlehem, Scranton, Bensalem Township, Harrisburg, Lancaster Pennsylvania, Connecticut, New Jersey, & New York Mobile HomeOwners: