The danger of foreclosure is one of the most painful financial situations for families. You own a home that meets all of your needs, and you like it. Nevertheless, due to poor conditions, foreclosure may seem imminent. Facing the threat of foreclosure can be not only stressful but embarrassing. However, often foreclosure is due to things out of our control like a job loss, a major repair expense like a new roof, or a serious accident that leaves someone unable to live alone. The tendency for many in foreclosure is to try to push it out of their minds and pretend it will go away. This is NOT the way to deal with foreclosure in Lancaster, Pennsylvania.
Lancaster, PA Options for Avoiding Foreclosure
For local Lancaster, PA families facing foreclosure, stress may be almost intolerable. Even worse, the foreclosure process can drag on for months or even years, making the suffering last longer than anyone would like.
Thankfully, you have options here in Pennsylvania—possibly more than you realize. These are legitimate strategies for preventing foreclosure that you can employ to help you resolve your predicament and go on with your life.
In this blog post, you’ll discover methods for avoiding foreclosure (there are other ways to avoid foreclosure as well). These methods are intended to help you prevent foreclosure legally and morally, as well as to lessen the pain and annoyance it causes, while also reducing any long-term financial obligations or burdens on you. While not all of these strategies will be effective in every situation, you’re probably going to find one of the three that does.
Lancaster, PA Residential Mortgage Foreclosure Diversion Program
The Lancaster County website says this regarding the diversion program. “is a collaborative effort between both public and private sector entities to address the increasing number of property foreclosures in Lancaster County.
Initiated on June 1, 2021, by the Administrative Order of President Judge David L. Ashworth, the Program becomes effective August 1, 2021. The primary objective of the Program is to provide a streamlined, unified process for the amicable resolution of mortgage foreclosure proceedings through court intervention, housing counseling, and conciliation conferences to help residents of Lancaster County stay in their homes.”
You can contact them for more information here:
Diversion Program Coordinator: Janis I. Jeffreys, Esq.
Lancaster County Courthouse
50 North Duke Street
Lancaster, PA 17608
Contact the Lender To Establish a Workout Option
“Foreclosure workout” is the term used to describe the first strategy. In a foreclosure workout, you would meet with your lender and explain that you are unable to meet your present mortgage obligation but would like to come up with a plan that would let you keep your house while still making your mortgage payments. You can learn more here about how to deal with your lender when facing foreclosure.
Lenders are not in the business of foreclosing, despite popular belief! Lenders are generally willing to work with homeowners to find a solution because they want happy clients who pay their mortgages on time. This might entail a brief break in your mortgage payments, a catch-up strategy in which your past-due mortgage payments are spread out to allow you to make up the difference and pay them off, or a restructure of your present debt.
File For Bankruptcy
Although filing for bankruptcy may seem drastic, it is one of your “weapons” for preventing foreclosure. By filing for bankruptcy, you are letting your creditors know that you are unable to make your debt payments. The foreclosure process can be stopped by filing for bankruptcy since all creditors must stop trying to collect debts.
However, declaring bankruptcy is a step too far for many people. A bankruptcy filing may have long-lasting financial repercussions. You might be forced to sell some of your assets to pay off your debts. A bankruptcy will also stay on your credit report for many years, making it more difficult for you to get a job, a loan, or even a car. Therefore, you shouldn’t use this as your first line of defense!
Short Sale Assistance In Pennsylvania To Avoid Foreclosure
A short sale is the third option, in which you sell your home and utilize the proceeds to pay off the remaining balance of your mortgage debt. Because short sales are prompt, efficient, and highly successful, homeowners facing foreclosure choose to use them.
Since a short sale can completely (or almost completely) reduce your mortgage debt, it is very effective. You will be responsible for paying any balance that remains after the property has been sold (although you can sometimes work out a deal with your lender).
It’s proactive, so you assume control of the circumstance (a significant stress reliever, since much of the tension associated with foreclosure stems from the process being entirely out of your control).
It moves quickly; in some cases, selling your property may only take a week! That’s also because it’s local: Awakened Properties in Lancaster, for example, helps people going through short sales.
The nice thing about working with a company like Awakened Properties is that there are no repairs needed, no remodeling, and no clean up. Awakened Properties will do their best to make an offer that will help you meet your debt. If they cannot meet your debt, often you can work out something with your lender to at least relieve the financial pressure. In addition, there are no additional fees or closing costs.
If you feel we can be of help to you, please contact us. You can read more about how we operate and some answers to frequently asked questions. You can reach us locally at 717-925-7465 or fill out the form here on our website.