In addition to automatic stay, provided by filing the bankruptcy petition (which temporarily gives you some breathing room), there are a few ways to slow or stop the foreclosure process in Pennsylvania. Consider these possible defenses:
- The interest rate on the loan is too high. There’s a limit on how much interested can be charged for a home mortgage loan. Pennsylvania law prohibits a lender from deceptively advertising the closing costs and fees. If your interest rate is higher than the current prevailing interes rates of 4 to 10%, you should consult with a lawyer.
- Possible violations of the federal Truth in Lending law. An amendment to this federal law, called the Home Ownership and Equity Protection Act (HOEPA) requires that your lender fully disclose information about the loan before you give your signature on it. If that information wasn’t provided, you can possibly rescind the mortgage.
- Fraud by a home improvement contractor. If a home improvement contractor cheated you – you may be able to cancel the loan used to pay for that work.
- Not observing proper foreclosure procedures. Pennsylvania requires specific procedures when a lender forecloses on a home. If you were foreclosed on without proper notice, or without informing you of your rights, this could let you delay foreclosure.
- Not properly proving ownership of the house. Because of the rampant securitization during the mortgage bubble, many lenders cannot properly even prove that they have a right to your house.
