Philadelphia Foreclosure Defense Lawyer

Pennsylvania Consumer Protection Lawyer Assisting Clients with Foreclosure Defense in Philadelphia

After the subprime mortgage crisis, homeowners throughout the Philadelphia area found themselves with underwater mortgages, rapidly dropping housing values, and foreclosure notices. At the law office of Louis S. Schwartz, we know how difficult it can be to learn that your home is at risk of foreclosure. For many homeowners, buying a home was an important step forward for your family, and we understand how important it is to keep your house if you are able to do so. Foreclosure defense is a term that can involve many different strategies for preventing a foreclosure. In some cases, homeowners also might be able to file for Chapter 13 bankruptcy in order to avoid foreclosure.

If you are at risk of losing your home to foreclosure, it is extremely important to discuss your options with a Philadelphia foreclosure defense lawyer.

Understanding the Foreclosure Process in Philadelphia

Facing foreclosure is one of the most stressful experiences a homeowner can endure. For many families in Philadelphia, falling behind on mortgage payments doesn’t just mean financial hardship—it threatens the security and stability of their home. At Louis S. Schwartz, Attorneys at Law (ConsumerLawPA), we believe that every homeowner deserves a clear understanding of their rights, the foreclosure process, and what can be done to fight back. Foreclosure is not the end of the road. With early legal intervention from a Philadelphia foreclosure lawyer, many options can help you keep your home or exit the situation on your terms.

Under Pennsylvania law, there are many required steps for a bank to begin and complete the process of foreclosure, including but not limited to:

First and second notice requirements of the intentional to foreclose;
Holder of the mortgage (usually the bank) files a complaint against the homeowner;
Homeowner is served the complaint and has an opportunity to respond;
Judgment in favor of either the bank or the homeowner.

According to a fact sheet from RealtyTrac, the foreclosure process in Pennsylvania is a relatively long one. The entire process we described above takes on average 270 days from start to completion. To put that number another way, the foreclosure process in Pennsylvania takes an average of nine months. This means you may have a number of months in which to contact a Philadelphia foreclosure defense lawyer to prevent a foreclosure.

How Foreclosure Works in Pennsylvania

Foreclosure in Pennsylvania is a judicial process, which means the lender must go to court and follow specific legal procedures before selling your home. This process typically begins after a borrower misses several monthly mortgage payments—often 90 days or more.

The first formal step is a Notice of Intent to Foreclose, which lenders must send at least 30 days before filing a foreclosure complaint. This notice gives you time to cure the default or seek help. It must include specific language required by Pennsylvania law, including the total amount owed, payment instructions, and your right to reinstate the loan.

If no resolution is reached, the lender files a foreclosure complaint in the Court of Common Pleas in the county where the property is located—in this case, Philadelphia County. You, as the homeowner, will be served with this complaint and given 20 days to respond. If you do not file an answer or legal defense, the lender may obtain a default judgment, allowing the property to be sold at a sheriff’s sale.

Foreclosure Is Not Inevitable, You Have Options in Philadelphia, Pennsylvania

Many homeowners assume that if they’re behind on payments, they have no legal defense. That’s not true. Foreclosure lawsuits can be challenged, especially if the lender made errors in servicing the loan, misapplied payments, failed to send proper notices, or violated the terms of the mortgage. In Pennsylvania, lenders must strictly comply with the requirements of the Homeowner Assistance Settlement Act (Act 91) and other applicable state and federal laws. Violations of the Real Estate Settlement Procedures Act (RESPA) or Truth in Lending Act (TILA) may also form the basis of a legal defense.

At ConsumerLawPA, we thoroughly examine your mortgage history, the conduct of your loan servicer, and all communications leading up to the foreclosure. We use that information to build strong, fact-based defenses that can slow down or even stop the process entirely.

Many Philadelphia homeowners believe that once foreclosure begins, nothing can be done. In reality, you have several tools at your disposal, even after the case has been filed:

Loan Modification: Renegotiate the terms of your mortgage to make payments more affordable.
Repayment Plan: Catch up on arrears over a period of time.
Forbearance Agreement: Temporarily pause or reduce payments due to hardship.
Deed in Lieu of Foreclosure: Voluntarily transfer the property to the lender.
Short Sale: Sell the home for less than what is owed, with lender approval.
Bankruptcy: Filing Chapter 13 can stop a foreclosure and give you time to catch up.

Our firm will help you determine which of these solutions is best suited to your needs, and we’ll take immediate action to preserve your rights.

How Could Chapter 13 Bankruptcy Help with My Foreclosure?

Chapter 13 bankruptcy is a type of “reorganization” bankruptcy in which a debtor’s assets are not liquidated to repay creditors. Instead, the debtor reorganizes debts and develops a payment plan through which she or he will repay creditors over a typically three- to five-year period. Many homeowners who are facing foreclosure can benefit from the automatic stay that comes with Chapter 13 bankruptcy.

In brief, when you file for Chapter 13 bankruptcy in Philadelphia, the automatic stay stops most collectors from continuing actions against you. This includes foreclosure actions and collection attempts related to your mortgage. With the automatic stay and the Chapter 13 payment plan, homeowners often can catch up on mortgage payments and remain in their homes.

Philadelphia’s Mortgage Foreclosure Diversion Program

Homeowners in Philadelphia have access to a unique legal safeguard not available in every county: the Mortgage Foreclosure Diversion Program. This court-supervised program allows homeowners and lenders to enter into a conciliation process—essentially, mandatory mediation—to explore alternatives to foreclosure.

Participation in the program can result in loan modifications, forbearance agreements, or structured payment plans. More importantly, it can buy you valuable time to remain in your home while negotiating with your lender. The Diversion Program is available only if the home is owner-occupied and located within the city limits. You must act quickly after receiving a foreclosure complaint to take advantage of this opportunity.

Our office regularly represents clients in the Diversion Program, helping them submit the necessary documents, negotiate with servicers, and make sure their interests are fully protected throughout the process.

What Happens at a Sheriff’s Sale

If no agreement is reached, the foreclosure case proceeds toward a sheriff’s sale. In Philadelphia, the Office of the Sheriff conducts these public auctions, typically scheduled months in advance. Your home is listed for sale, and third-party bidders—or even the lender—may purchase the property.

Before the sale takes place, you have the legal right to stop it by reinstating the mortgage (paying all past due amounts) or redeeming the property (paying the full loan balance). Once the sale is completed, a new deed is issued to the buyer, and you may be subject to eviction if you remain in the home.

A foreclosure sale does not automatically end your legal or financial responsibilities. In some cases, if the sale price is less than what you owe, the lender can pursue a deficiency judgment—a separate court action seeking to collect the difference.

Why Fight Foreclosure?

Many homeowners believe that once the foreclosure process starts, there’s no point in resisting. This couldn’t be further from the truth. Fighting foreclosure gives you time, leverage, and options. Even if you are behind on your mortgage, you may have legal defenses that could invalidate the foreclosure or result in a favorable settlement. Lenders must follow strict procedural rules, including properly serving notices, complying with loss mitigation requirements, and accurately documenting their standing to foreclose. If they fail to meet these obligations, the court may delay or even dismiss the foreclosure case entirely. By asserting your rights, you force the lender to prove their claims—and in many cases, that pressure leads to negotiation.

In addition to legal defenses, fighting foreclosure can also give you valuable breathing room. It may create space to apply for a loan modification, explore a short sale, or even pursue bankruptcy if necessary. More importantly, it can protect your dignity and peace of mind. Standing up for your rights ensures you won’t be pushed out of your home without due process. At ConsumerLawPA, we’ve helped countless Philadelphia homeowners achieve positive outcomes simply by taking that first step to challenge the process. Even if the ultimate goal is to leave the property, fighting foreclosure can help you do so on your own terms—with time to plan, relocate, and protect your financial future.

How Foreclosure Affects Your Credit

A foreclosure can significantly damage your credit score and impact your ability to obtain housing, loans, or even employment. Once a foreclosure is reported to the credit bureaus, it can lower your credit score by 100 to 160 points or more, depending on your starting point. This negative mark typically stays on your credit report for seven years from the date of the first missed payment that led to the foreclosure. The impact is even greater if it appears alongside other delinquencies, such as late payments, charged-off accounts, or judgments.

In addition to lowering your score, foreclosure may make it more difficult to qualify for a future mortgage. Most conventional lenders impose a waiting period of at least seven years before approving a new home loan, while FHA and VA loans may allow shorter timelines under specific hardship conditions. That said, successfully negotiating an alternative—such as a loan modification, short sale, or deed in lieu—may have a lesser impact on your credit and allow for faster financial recovery. At Louis S. Schwartz, we work with clients not only to fight foreclosure but also to limit the long-term damage it can cause. Preserving your credit may not be the first thing on your mind during a crisis, but it’s a critical part of rebuilding your life once the situation is resolved.

Do I Need a Foreclosure Lawyer?

Yes—if you’re facing foreclosure in Philadelphia, having a qualified foreclosure attorney on your side can make a tremendous difference. The legal system is complex, and mortgage servicers have teams of attorneys representing their interests. Without a knowledgeable advocate, homeowners can easily miss important deadlines, overlook legal defenses, or sign agreements that aren’t in their best interests. A foreclosure lawyer will examine your loan documents, payment history, and all notices you’ve received to determine whether your lender has followed the law. If not, they can raise objections in court, file counterclaims, or force the lender to consider reasonable alternatives like a loan modification or repayment plan.

Beyond the courtroom, a foreclosure attorney provides critical strategic advice. Should you fight the foreclosure or negotiate a graceful exit? Can you realistically keep the home, or should you prepare to transition out with as little damage as possible? What are the consequences of inaction? At ConsumerLawPA, we don’t just handle paperwork—we offer honest, practical answers to these difficult questions. Louis S. Schwartz has years of experience helping homeowners find solutions that work for their lives, not just their legal case. When your home, credit, and peace of mind are on the line, it’s worth having someone in your corner who knows how to fight and when to negotiate.

Why You Need Legal Help Sooner Rather Than Later

Every stage of the foreclosure process is subject to strict deadlines. If you wait too long to act, your options may become limited, and your chances of saving your home reduced. That’s why it’s crucial to consult with an experienced foreclosure attorney as soon as you receive a notice or legal complaint.

Louis S. Schwartz has spent years protecting Philadelphia homeowners from aggressive lenders, deceptive practices, and unfair foreclosure actions. Our firm takes the time to listen, assess your case, and provide honest advice about the best path forward.

Seek Advice from a Philadelphia Foreclosure Defense Lawyer

You don’t have to face foreclosure alone. At ConsumerLawPA, we are committed to defending your home, your rights, and your future. Whether you want to keep your house or need a dignified exit, we’ll fight for the best possible outcome.

Contact Louis S. Schwartz, Attorneys at Law, today for a confidential consultation. We’ll help you take control of the foreclosure process and explore every option available under the law.

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