Foreclosure Rights in Pennsylvania
Reviewed by the Commoner Law Editorial Team. Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
If you fall behind on your mortgage, your lender can begin the process of foreclosure — taking your home to satisfy the debt. However, federal and state laws give you significant rights during this process, including the right to notice, the right to reinstate your loan, the right to explore alternatives, and in many cases the right to a court proceeding before your home can be sold.
Federal rules require mortgage servicers to attempt loss mitigation (loan modification, forbearance, short sale) before proceeding with foreclosure. Your state's laws determine whether foreclosure goes through the courts (judicial foreclosure) or is handled outside court (non-judicial foreclosure), which significantly affects your timeline and options.
When does it apply?
Your foreclosure rights apply when:
- You have fallen behind on mortgage payments and your lender or servicer contacts you about default
- You receive a notice of default, notice of intent to foreclose, or a lis pendens (lawsuit filing)
- You are a tenant renting a home that is being foreclosed on (you have separate protections)
Judicial vs. non-judicial foreclosure:
- Judicial (about 22 states): The lender must file a lawsuit and get a court order before selling your home. You receive a summons and have the right to respond, raise defenses, and appear at hearings. Timeline: typically 6-18 months. States include New York, New Jersey, Illinois, Florida, Ohio.
- Non-judicial (about 28 states + D.C.): The lender follows a statutory process (usually involving notices and a waiting period) without court involvement. Faster timeline: typically 3-6 months. States include California, Texas, Georgia, Arizona, Washington. You can still challenge the foreclosure in court, but you must file the lawsuit yourself.
Key federal protections:
- 120-day rule: Your servicer cannot begin foreclosure until you are more than 120 days delinquent (12 C.F.R. § 1024.41(f)).
- Loss mitigation: If you submit a complete loss mitigation application more than 37 days before a scheduled sale, the servicer must evaluate you before proceeding.
- Dual tracking ban: The servicer cannot continue foreclosure while actively reviewing your loss mitigation application.
Common misconceptions:
- "Once I miss payments, I lose my home" — Foreclosure takes months or years. You have multiple opportunities to catch up, modify your loan, or sell the home.
- "I can't do anything once the process starts" — You can apply for loss mitigation, reinstate your loan, or negotiate a short sale at many stages of the process.
- "My landlord's foreclosure isn't my problem" — If you are renting a home that is foreclosed, the Protecting Tenants at Foreclosure Act gives you at least 90 days' notice before you must vacate.
What to Do If You're Facing Foreclosure
Step 1: Contact your mortgage servicer immediately if you are struggling to make payments. Ask about forbearance (temporary pause or reduction), loan modification, or repayment plans. Do this before you fall behind if possible.
Step 2: Contact a HUD-approved housing counselor for free assistance. Call 1-800-569-4287 or visit hud.gov/findacounselor. Housing counselors can help you understand your options and communicate with your servicer.
Step 3: If foreclosure proceedings have begun, respond to all legal notices within the deadlines. In judicial foreclosure states, file an answer to the complaint. In non-judicial states, watch for your right of reinstatement (paying the past-due amount to stop the foreclosure).
Step 4: Submit a complete loss mitigation application to your servicer. Under federal rules, the servicer must evaluate you for all available options before proceeding with foreclosure. Get confirmation that your application is complete.
Step 5: If you cannot keep the home, explore alternatives: short sale (selling for less than you owe with the lender's approval), deed in lieu of foreclosure (transferring the property to the lender), or Chapter 13 bankruptcy (which can halt foreclosure and allow you to catch up through a repayment plan).
What should you NOT do?
Don't ignore notices from your servicer or the court. Every missed deadline reduces your options. Open all mail from your mortgage company and respond promptly.
Don't pay a foreclosure "rescue" company. Scammers target homeowners in foreclosure, charging fees for services that HUD-approved counselors provide for free. Never pay upfront fees for foreclosure assistance.
Don't move out before you have to. Leaving early doesn't stop the foreclosure process, and you may give up rights (like the right to reinstate). Stay in the home until you have a plan or a legal obligation to leave.
Don't sign a quit-claim deed without legal advice. Scammers may ask you to sign over your home's title with promises of help. This can result in losing your home without any debt relief.
How Pennsylvania differs from federal law
Pennsylvania is a judicial foreclosure state with homeowner counseling protections:
- Judicial foreclosure: Pennsylvania requires all foreclosures to go through the court system. The lender must file a complaint, and the homeowner has the right to respond, raise defenses, and contest the foreclosure in court.
- Act 91 notice (35 P.S. § 1680.401c et seq.): Before filing a foreclosure action on a residential mortgage, the lender must send a 30-day Act 91 notice informing the homeowner of their right to meet with a housing counselor approved by the Pennsylvania Housing Finance Agency (PHFA). This meeting can explore alternatives to foreclosure.
- Diversion programs: Philadelphia and several other Pennsylvania counties offer foreclosure diversion programs that require lenders to participate in conciliation conferences before proceeding with foreclosure. Philadelphia's program has been particularly effective at keeping homeowners in their homes.
- Limited right of redemption: Pennsylvania's right of redemption is limited compared to some states. Homeowners generally cannot redeem the property after the sheriff's sale unless the sale price was inadequate or there was fraud.
Additional Steps in Pennsylvania
Contact a HUD-approved housing counselor immediately upon receiving a foreclosure notice. In Philadelphia, contact the Save Your Home Philly Hotline at (215) 334-4663. Statewide, contact PHFA at (800) 822-1174. Respond to all court filings within the deadlines. Consult a foreclosure defense attorney.
Relevant Law: 35 P.S. § 1680.401c et seq. (Act 91), Pa.R.C.P. 1141-1150 (mortgage foreclosure procedure)
Common Questions
When does foreclosure rights apply?
Your foreclosure rights apply when:You have fallen behind on mortgage payments and your lender or servicer contacts you about defaultYou receive a notice of default, notice of intent to foreclose, or a lis pendens (lawsuit filing)You are a tenant renting a home that is being foreclosed on (you have separate protections)Judicial vs. non-judicial foreclosure:Judicial (about 22 states): The lender must file a lawsuit and get a court order before selling your home. You receive a summons and have the right to respond, raise defenses, and appear at hearings. Timeline: typically 6-18 months. States i...
What should I do if I'm behind on my mortgage and facing foreclosure?
Step 1: Contact your mortgage servicer immediately if you are struggling to make payments. Ask about forbearance (temporary pause or reduction), loan modification, or repayment plans. Do this before you fall behind if possible.Step 2: Contact a HUD-approved housing counselor for free assistance. Call 1-800-569-4287 or visit hud.gov/findacounselor. Housing counselors can help you understand your options and communicate with your servicer.Step 3: If foreclosure proceedings have begun, respond to all legal notices within the deadlines. In judicial foreclosure states, file an answer to the complai...
What mistakes should I avoid with foreclosure rights?
Don't ignore notices from your servicer or the court. Every missed deadline reduces your options. Open all mail from your mortgage company and respond promptly.Don't pay a foreclosure "rescue" company. Scammers target homeowners in foreclosure, charging fees for services that HUD-approved counselors provide for free. Never pay upfront fees for foreclosure assistance.Don't move out before you have to. Leaving early doesn't stop the foreclosure process, and you may give up rights (like the right to reinstate). Stay in the home until you have a plan or a legal obligation to leave.Don't sign a qui...
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