What to do when you receive a Notice of Intent to Foreclose

In Pennsylvania, once a borrower falls behind in their mortgage payments, the first thing that occurs is receipt of a Notice of Intent to Foreclosure (Act 6 Notice). The Notice of Intent to Foreclose is typically sent to PA borrowers if they fall 90 days behind in their mortgage payments. The purpose of this notice is to inform the borrower that the lender intends to foreclose on the property if the mortgage is not made current.

Once a borrower receives this, it’s common for borrowers to feel that it’s only a matter of time until they lose their home through foreclosure. This is not always the case since borrowers have options other than foreclosure.

As soon as you receive a Notice of Intent to Foreclose, see an attorney immediately. An attorney will meet with you, review your financial statements, and determine if you qualify for a loan modification. A loan modification, if approved, can significantly reduce the amount of your mortgage.

For example, if the amount of the mortgage is $250,00, a reduction in the interest rate from 6.5% to 4.5% can reduce the monthly mortgage payment from $1,580 to $1,266. That’s over $300 per month that you could be saving if you qualify for a loan modification.

Additionally, if your goal is to be able to walk away from the home without harming your credit, an attorney can help you get a short sale approved which is when a bank agrees to allow the borrower to sell the home for less than the amount owed on the mortgage and the bank will also waive the amount of the deficiency.

If you have been served with a Notice of Intent to Foreclose in the Lehigh Valley and seek the service of foreclosure defense attorneys who can help you obtain a loan modification or short sale, please call Zachary Zawarski at (610) 417-6345.

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