What happens if I don’t make my mortgage payments?

If you fail to make your mortgage payments, you may be at risk of foreclosure. Foreclosure is the legal process in which the mortgage lender takes possession of the mortgaged property from the borrower as payment for the loan. In Pennsylvania, the lender must file a complaint in court to begin the foreclosure process. The lender must give you notice of the action before they can begin the foreclosure. The notice includes the amount owed, the default date, and the right to cure the default. If you do nothing, the mortgage lender can legally take possession of and sell the home at a Sheriff’s sale. Most of the time, the lender will obtain the highest price for the property. The proceeds of the sale are used to pay off the loan balance and any other fees or costs that are assessed against the property. Any remaining funds are distributed to the mortgagor. You have other options than foreclosure when you cannot make your mortgage payments. You can contact the lender and attempt to reach a loan modification agreement. A loan modification is an agreement between you and the lender to change the terms of the loan to make them more manageable. You may be able to spread out the payments over a longer period of time or reduce the interest rate or principal balance. In some cases, you may be eligible for loan forbearance, which allows you to temporarily make reduced loan payments or skip payments altogether for a certain period of time. It is important to keep in mind that you will still owe the money during the forbearance period and any skipped or reduced payments will have to be paid at some point.

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What happens if I don’t make my mortgage payments?

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