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Pennsylvania foreclosure law only allows the lender to initiate Judicial Foreclosure procedures. The original loan documents will not contain a “power of sale” clause. The lender must sue the borrower in court.
First a notice of intent to foreclose on the property must be sent by registered or certified mail to the borrower. The borrower must be at least sixty (60) days behind in payments. The borrower then has thirty (30) days to cure the default. The notice of intent to foreclose sent by the lender must state that the full balance of the mortgage will become due if the borrower does not cure the default.
If the borrower can not satisfy the default, then the lender will sue for an order to foreclose. A title search must be ordered and received by the clerk of the court before the suit can be filed. If the court finds the borrower has defaulted on the loan, an order of sale is issued and a sheriff's auction is scheduled. Within thirty (30) days, the sheriff must serve the notice to the borrower, who then has twenty (20) days to file an answer. The sale is conducted in accordance with the instructions from the court.
The borrower may cure the default any time up to one hour before the scheduled time of the sale. If the borrower can not cure the default by that time, the sale will be conducted and there is no redemption period after the sale.
The lender may sue the borrower for a deficiency judgment within six months of the sale. |
