When the owner, Doug, bought my house with cash get behind on their mortgage payments, lenders typically notify them of the foreclosure process and how long they have to respond. If the homeowner fails to respond, a judge will grant the lender a default judgment and the property will go up for auction. During the sale, the lender will try to sell the property for an amount that covers the mortgage debt and any other applicable fees. Selling a house in foreclosure PA can be a complicated process if the proper legal and financial advice is not sought.

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The foreclosure process in Pennsylvania usually starts with a breach letter from the lender notifying you of your failure to make payments. You have 20 days to respond, and if no response is received, the lender will move forward with the foreclosure. The home is considered bank owned real estate or REO, and the lender will attempt to sell it at current market prices through a real estate agent or online listings. If the property is not sold, it goes to a foreclosure sale at the county courthouse.

Homeowners in foreclosure can take proactive steps to avoid the negative consequences by selling the property prior to a sheriff sale. However, there are many considerations to take into account when deciding on the best course of action. Ultimately, the decision should align with your financial goals and personal priorities. For example, giving back the property to the bank via deed in lieu may be suitable under certain circumstances, while selling the property as-is for cash to a local reputable home buyer like 717 Home Buyers is another option that can save time and money.