Act 6 Base Figure for 2013

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 … Continue reading »


Help For Underwater Homeowners In Bethlehem

Due to the sub-prime mortgage crisis of 2008, many homeowners located in the Lehigh Valley are still feeling the effects.  In some cases, property values have declined 35-50% from their peak in 2006. Recently, a $26 billion deal was struck with the nation’s top banks such as Bank of America, Wells Fargo, J.P. Morgan Chase, Citigroup, and Ally. The deal has been in the works for over a year. According the deal, $17 billion will go towards foreclosure relief efforts such as short sales and homeowner transitions programs. $3 billion has been allotted towards an underwater mortgage refiance program.  The … Continue reading »

What is a Pennsylvania Act 6 Notice?

A Pennsylvania Act 6 Notice, 41 P.S. §101, is a notice that a lender must send to a residential mortgage borrower prior to filing a foreclosure action in Court and it must be sent by certified or registered mail. The Act 6 notice does not apply to all mortgagors. The Notice only applies to residential mortgagors whose mortgage is $221,540 or less. If your mortgage exceeds this amount, you are not legally required to receive a notice before a lender begins a foreclosure action. However, once a foreclosure action is filed, you’ll be served with the Complaint by the sheriff. The … Continue reading »


My mortgage exceeds 31% of my gross income, why won’t my lender modify my loan?

Fannie Mae and Freddie Mac own a lot of mortgages and they use loan servicers such as Bank of America, Wells Fargo, and Chase to service those loans. Servicers of Fannie Mae and Freddie Mac loans are required to review borrowers for HAMP loan modification applications. The basic eligibility criteria for a HAMP loan modification is that you mortgage payment must exceed 31% of your gross monthly income.  If you earn $10,000 a month and your mortgage payment is $2,500, you are ineligible for the program. However, if your mortgage payment is $4,000, the HAMP guidelines would seek to lower your monthly … Continue reading »

Can credit card companies garnish wages or bank accounts in PA?

The worry most debtors have is whether a credit card company can garnish their wages or bank account. Before a creditor can garnish your wages or bank account, they must receive a court order to do so. The process starts by filing a complaint in court against the debtor. A debtor can defend the action by having an attorney file an answer to the complaint. If the debtor does not take any action, the credit card company would receive a default judgment. Once the credit card company obtains a judgment, they can proceed to attempt to collect the debt. Garnishment … Continue reading »