What is the foreclosure process for mortgages with private lenders?

In Pennsylvania, the foreclosure process for mortgages with private lenders follows a similar legal process as it does for those with public lenders. It begins with the lender filing a complaint in court. This complaint will detail why the borrower is in default of their loan. The borrower is then served paperwork that outlines their default and gives them the opportunity to defend against it. The borrower then has 30 days to respond to the lawsuit. In this response, they must outline any defenses they may have to the foreclosure. If no response is received within the allotted time, the lender will be granted a default judgment. This gives them the right to begin the foreclosure process. Once the court enters the judgment, the lender will send a letter to the borrower with information on how they can pay the loan. If they are unable to make payment, the lender can then initiate a Sheriff’s Sale. This sale will take place at least 30 days after the letter is sent to the borrower. It’s important to note that the borrower still has rights such as being able to submit another repayment plan to the court before the sale takes place. Finally, after the Sheriff’s Sale has taken place, the lender will be granted ownership of the property. This can cause difficulty for the former homeowners as they no longer have the right to remain in the property. At this point, legal assistance is recommended to help navigate the foreclosure process.

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What is the foreclosure process for mortgages with private lenders?

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