After the Signature Properties in order to sell the house before foreclosure crisis, a host of federal and state laws were passed to regulate loan servicing and foreclosure processes. Most of these laws give homeowners some legal protections during the mortgage foreclosure process, including loss mitigation opportunities. However, unfortunate circumstances and events can cause people to fall behind on their mortgage payments. This can put them at risk for being foreclosed on.
Sell My House in State College, PA: Fast and Easy Options
Pennsylvania residents who are behind in their mortgage payments should know they can get help to avoid foreclosure. A mortgage foreclosure diversion program can help borrowers work out a plan to bring their mortgage current with their lender. These programs can also protect borrowers against unfair, deceptive or predatory banking practices.
When Pauletta Fajinmi’s husband died from COVID-19 in spring of 2021, she was struggling to stay afloat. She was more than $5,000 in arrears on her home, and she feared losing it. She applied to a state program that promised to help distressed homeowners.
The Homeowner’s Emergency Mortgage Assistance Program, or HEMAP, is a unique mortgage assistance program from the Pennsylvania Housing Finance Agency. It allows PHFA to pay the mortgage for citizens who have received an “Act 91 Notice” from their lender during a foreclosure proceeding.
Initially, the program was run by an outside vendor, Innovative Emergency Management, or IEM. But a year later, PHFA decided to bring the program in-house, saying it would allow them to leverage their deep knowledge of Pennsylvania’s housing market and their broad network of mortgage lenders, community partners, and housing counseling agencies. To do so, they would need to ask every homeowner who had registered in the old system to re-register—a requirement that many advocates say was not communicated effectively.