If your mortgage company has commenced a foreclosure action, there are several key strategies that can be employed to save your home.
Defend Foreclosure Lawsuit Directly in the Court of Common Pleas:
First, a homeowner can hire an attorney to defend directly against the foreclosure lawsuit in the Court of Common Pleas, located in your County, by filing Preliminary Objections, or an Answer with Affirmative Defenses. Unfortunately, this type of defense may be expensive and may only serve to delay the sheriff's sale, as opposed to saving the homeowner's personal residence.
Stop Foreclosure Lawsuit through a Loan Modification:
The second strategy is for the homeowner to apply for a loan modification. There are many factors that a mortgage company will consider to determine if you qualify for a loan modification. Some loan modification programs are government backed, and others are private, which have different qualifications. Unfortunately, when a homeowner attempts to apply for a loan modification they can feel as though the mortgage company is actually obstructing the process and they cannot make any headway. Here are the following most likely scenarios as to why a loan modification was denied: (1) failure to send requested documents; (2) did not meet government or private loan modification qualifications; (3) sheriff's sale occurred before loan modification was reviewed or approved; and (4) problems with communicating with mortgage company.
Stay Foreclosure Lawsuit and reinstate mortgage loan from default with Chapter 13 Bankruptcy:
The third strategy for a homeowners to save their residence is filing a Chapter 13
Bankruptcy in order to rehabilitate the mortgage and cure the default. This