In Pennsylvania, Act 6 (41 P.S. §403) is a notice that requires a lender to send a borrower a 30-day notice informing the borrower that the loan is in default prior to being able to commence a foreclosure action. The Notice informs the homeowner of their right to reinstate the mortgage within 30 days to prevent a foreclosure action. If a foreclosure action is filed and an Act 6 Notice was not sent via certified or registered mail, the homeowner has a defense to the foreclosure action.
Act 6 only applies to mortgages with an original principal balance under a certain level. In 2013, the Act will only apply to mortgage with a base figure of $234,692. When the Act was passed back in 1974, it only applied to residential mortgages whose original principal amount was $50,000 or less. In 2008, the Act was amended to increase the base figure from $50,000 to reflect inflation. Below are the base figures and the year the base figure was in effect.
2009 – $217,873
2010 – $219,035
2011 – $221,540
2012 – $230,110
2013 – $234,692
If you have questions regarding foreclosure or the Act 6 Notice, feel free to contact us at (610) 417-6345. We represent homeowners in foreclosure cases in Northampton and Lehigh County.