FORECLOSUREPREVENTION

RESOURCE GUIDE

Visit us on the Web: www.frc.uac.org

2019 Edition Prepared by:UAC ForeclosurePrevention Task Force

1207 Chestnut StreetPhiladelphia, PA 19107

Table of Contents Purpose ....................................................................................................................................Quick Contacts ..........................................................................................................................

Section I: What is mortgage foreclosure and how does it work? .............................................. Foreclosure Chart ............................................................................................................. The Foreclosure Process Explained ...................................................................................... HowCanIPreventtheSheriff’sSale?................................................................................. Sheriff’sSaleProceduresandContactInformation................................................................

Section II: How can I prevent mortgage foreclosure? .............................................................. Housing Counseling and Preventing Foreclosure ................................................................... MortgageForeclosureRescueandLoanModificationScams.................................................... I’mnotinForeclosurebutstrugglingtomakemymortgagepayments.................................... FHARateandTermRefinances................................................................................. FHAShortRefinance............................................................................................... I’vereceivedanoticeandaminforeclosure........................................................................ Homeowner’sEmergencyMortgageAssistanceProgram(HEMAP)................................. FHA HAMP FlexModification.................................................................................................... ReverseMortgageRepaymentPlansforTaxandInsuranceCharges............................... CityofPhiladelphia’sResidentialMortgageForeclosureDiversionProgram...................... BucksCountyMortgageForeclosureDiversionProgram............................................... DelawareCountyMortgageForeclosureDiversionProgram.......................................... MontgomeryCountyMortgageForeclosureDiversionProgram......................................

Section III: How do I prevent tax and water lien delinquency foreclosure? ............................. CityofPhiladelphia’sOwner-OccupiedPaymentAgreementforPropertyTaxes.......................... CityofPhiladelphia’sInstallmentPlanAgreementsforCurrentPropertyTaxes.......................... Philadelphia Property Tax Foreclosure Chart ......................................................................... The Philadelphia Tax Foreclosure Process Explained .............................................................. CityofPhiladelphiaWaterandSewagePaymentAgreementandLowIncome AssistanceProgram.......................................................................................................... SuburbanPhiladelphiaAgreementsforDelinquentPropertyTaxes........................................... CountySpecificInformationforDelinquentPropertyTaxAgreements(bycounty)..................... TaxAssistanceProgramRequirements................................................................................

Section IV: If losing my home is inevitable, what are my options? .......................................... ShortSalesandDeed-in-LieuofForeclosure........................................................................ Section V: Housing Counseling Agency Directory and Sample Forms ....................................... HousingCounselingAgencyDirectory................................................................................. Act 91 Notice ................................................................................................................... Act 6 Notice .................................................................................................................... Complaint....................................................................................................................... ImportantNotice.............................................................................................................. Judgment........................................................................................................................ Sheriff’sSaleScheduled.................................................................................................... Tax Foreclosure Warning....................................................................................................

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1207 Chestnut St. 7th FloorPhiladelphia, PA 19107

Phone:215-851-0110Fax:215-851-0514

Email:coalition@uac.org

DearFriends:

Forthepast49years,theUrbanAffairsCoalition(UAC)hasbroughttogethercivic,community,govern-mentandbusinessleaderstoaddressinequalitiesineconomicaccessandmakeahomeforgrassrootsorganizationstothrive.Asweenterintoour50thyearofservicetotheGreaterPhiladelphiaregion,we’dliketoreflectontheoriginsofourworkinthisfield.

In1975,communitypressuretoaddresspersistentandwidespreadracialdiscriminationinmortgagelend-ingpractices-otherwiseknownas“redlining”-culminatedintheformationofthePhiladelphiaMortgagePlanatGreaterPhiladelphiaUrbanAffairsPartnership,oneofthepredecessororganizationsofUAC.Thisconsortiumofbankersandcommunityleadersworkedtirelesslytotackleunfairmortgagelendingprac-ticesinthecityandlaterthroughouttheDelawareValleyregionthroughtheexpandedDelawareValleyMortgage Plan.

ItwasthroughthisoriginalworkinPhiladelphiathatUAC’sCommunityandEconomicDevelopment(CED)Committeewasformedtobringtogetherlendinginstitutions,communitydevelopmentorganizations,gov-ernmentagencies,privatecompanies,andcommunityleaders.Now,overfourdecadeslater,UACisstillonthefrontlines,workingdirectlywithlendersandcommunitymemberstoaddresstheissueofaccessingcapitalforlowandmoderateincomecommunities.

Today,wearepleasedtoprovideyouwiththenewesteditionoftheForeclosurePreventionResourceGuide,anotherresourceinthefightforeconomicjustice.In2007,communityleadersandbankerssawtroublingconditionsarisingfromsubprimemortgages.Inresponse,CEDformedaForeclosurePreventionTaskForcethatledtoasetof14recommendationstoguidetheCity’sresponsetotheemergingcrisis.Oneoftheserecommendationswastocreateaguidetohelpprofessionalsandhomeownersunderstandandpreventhousingforeclosure.

PreventingforeclosureremainsacriticalpartofCED’swork.Withthehelpofthisguideandthepartner-shipforgedbetweenhousingcounselingagencies,theCityofPhiladelphia’sDivisionofHousingandCom-munityDevelopment,thecourts,andlenders,theCityofPhiladelphia’sResidentialMortgageForeclosureDiversionProgramhashelpedsavemorethan15,000homeownersfromforeclosureoverthelastnineyears.

InadditiontotheForeclosurePreventionResourceGuide,CEDalsoprovidedon-the-groundprogrammingwithpartnersthroughouttheGreaterPhiladelphiaregion.Financialeducationworkshopsareavailabletoallpartnerstoprovidefreecurriculumtoincreaseeconomicmobilityamongcommunitymembers.CEDalsomanagesanemployer-assistedhousingprogramthatprovidesgrantfundingforlowandmoderate-in-comeindividualswhoareinterestedinpurchasinghomes.CEDcontinuestodriveforwardtheirgoalofensuringthateveryPhiladelphiahomeownerhasaccesstosafeandfairhomeownershipopportunities.WehopethisGuidecontinuestobeausefulresourceforyouandyourclients.WealsowanttothankSantanderBankforprovidingthesupportthatmadeproductionofthiseditionoftheGuidepossible.Yourfeedbackorsuggestionsarewelcomed.Pleasee-mailusatforeclosureguide@uac.org.

Sincerely,

SharmainMatlock-TurnerPresident/CEO

PurposeThisresourceguideisintendedtoraiseawarenessaboutthehomeforeclosureprocess,relatedgrantandloanprograms,andhousingcounselingresourcesforthefive-countyPhiladelphiametropolitanarea.TheGuideisdesignedtohelpprofessionals,whoencounterhomeownersfacingforeclosure,aswellastodemystifytheforeclosureprocessforhomeownersandhelpthemtakeadvantageoftheopportunitiestopreserveownershipoftheirhomes.Pleasecontacttheindividualadministeringagenciesformoreinformation.

About the Urban Affairs Coalition (UAC) Foreclosure Prevention Task ForceUAC’sForeclosurePreventionTaskForceishelpingtostrengthenthesystem-widestrategyofcombatingthemortgageforeclosurecrisisinPhiladelphia and helping to prevent unnecessary foreclosures.TheTaskForceismadeupofbankers, bank regulators, housing counselors, legalaidattorneys,communityadvocatesandlocalgovernmentagencyrepresentatives.TheTaskForcewasformedinSeptember2007andpresentedrecommendationsandstrategiestoUAC’sCommunityandEconomicDevelopment(CED)CommitteeinApril2008.

The Task Force presented strategies and recommendationsinthreeareas:EducationandAwareness,AffordableandBeneficialMortgage/FinancialProducts,andGovernmentandMortgage Industry Policies and Regulations.

UAC’s MissionUACunitesgovernment,business,neighborhoods and individual initiatives to improvethequalityoflifeintheregion,buildwealthinurbancommunitiesandsolveemergingissues.

CED’s MissionTheCoalition’sCommunityandEconomicDevelopment(CED)departmentbringscapitaltocommunitiesbybuildingbridgesbetweenlow-andmoderate-incomeareasandmainstreamfinancialinstitutions.

Your FeedbackWewelcomeyourfeedback,additions,orcorrections.PleasecontactJojyVargheseat215-851-1737orjvarghese@uac.org.AnelectronicversionofthisGuideisupdatedperiodicallyandpostedonlineatwww.frc.uac.org.

DisclaimerWhilethisdocumentrepresentsourupdatedresearch, UAC does not guarantee the accuracy or timelinessoftheinformationbelow.Thisisafastchangingenvironment.AsofDecember2016,thisisthemostcurrentinformationwehavebeenabletoobtain.Westronglysuggestcontactingtheadminis-teringagencyforfurtherinformation.Thelawoftenchanges,andeachcaseisdifferent.Thisresourceguideismeanttoprovidegeneralinformationandisnotintendedtoprovideanyspecificlegaladvice.

Prepared ByShruthiArvind CityofPhiladelphiaRoger Ashodian Scholl & AshodianRobertBallenger CommunityLegalServicesMichelleBrix CommunityLegalServicesWilliamHall CityofPhiladelphia/CEOErikHansen LegalAidofSoutheasternPAAllison Hughes Scholl & AshodianDavidJonas LegalAidofSoutheasternPACatherineMartin CommunityLegalServciesFranyuriMedina DivisionofHousingand CommunityDevelopmentMargaret Robinson Philadelphia Legal ServicesJenniferSchultz CommunityLegalServicesJojyVarghese UrbanAffairsCoalitionMontyWilson CommunityLegalServices

Edited ByKalieWertz UrbanAffairsCoalitionRachelLewis UrbanAffairsCoalition

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Quick ContactsVisitusontheWeb:www.frc.uac.org

ForeclosureHotlines SaveYourHomePhillyHotline 215-334-HOME OHCDphila.org PennsylvaniaHousingFinance 800-822-1174 www.phfa.org Agency Hotline

Homeowner FannieMae 1-800-2FANNIE www.fanniemae.com

MortgageAssistance FreddieMac 1-800-FREDDIE www.freddiemac.com

LegalAssistance CommunityLegalServices 215-227-2400 www.clsphila.org(incomelimits) PhiladelphiaLegalAssistance 215-981-3800 www.philalegal.org

LegalAidofSoutheasternPA 877-429-5994 www.lasp.org

LawyerReferral PhiladelphiaBarAssociation 215-238-6333 www.philadelphiabarlawyers.com LawyerReferralandInformation Services LawyerReferralServiceofBucks 888-991-9922 www.bucksbar.org/?page=LawyerReferralServ ChesterCountyLawyer 610-429-1500 http://www.chescobar.org/?page=LawyerRefmem ReferralService bers

LawyerReferralServiceof 610-566-6625 http://www.delcobar.org/?page=lawyerreferral DelawareCounty

LawyerReferralService– 610-279-9660 www.montgomerybar.org/public/lrs/index.php MontgomeryCountyBar Ext201 Association

Other UrbanAffairsCoalition 215-851-1738 www.uac.org PhiladelphiaCountySheriff’s 215-686-3530 www.officeofphiladelphiasheriff.com Office

BucksCountySheriff’sOffice 215-348-6124 http://www.buckscounty.org/government/RowOffi cers/Sheriff ChesterCountySheriff’sOffice 610-344-6850 www.chesco.org/sheriff

DelawareCountySheriff’sOffice 610-891-4296 www.co.delaware.pa.us/sheriff/index.html

Additional FederalReserveBankofPhiladelphiaVirtual https://www.philadelphiafed.org/foreclosureInformationand ForeclosureResourceCenter-forconsumerResources information,communityresources,researchand publications, policies and regulations, and news

Phone Contacts

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Section I:What is mortgage foreclosure and how does it work?

Mortgageforeclosureisacomplicatedprocessthatrequiresdiligentactionbythehomeownerateverystep.Thissectionprovidesanoverviewoftheentireprocess,aswellasdetailedexplanationsofeachstepalongtheway.Theinformationinthissectionmaybeusefulforprofessionalsthatarehelpinghomeownerssavetheirhomesorhomeownersinforeclosurethatwanttolearnmoreabouttheprocesstoasserttheirrights.

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Foreclosure ChartThischartismeanttogiveyouanideaofwhathappensifyoudonotdoanythingtostoptheforeclosure.Thechartshowstheshortestamountoftimethatcanpassbetweeneachstep.Ateachstep,thereareactionsyoucantaketodefendagainstforeclosurethatwillalsoresultinendingorextendingthetimelinesbelow.Thefollowingsectionex-plains each step in detail

Current I am behind on my mortgage payments

1 month More than 60 days

2 months At least 33 days I received an I received an “ACT 91 NOTICE—TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE”(Seeexampleonpage53) At least 30 days Ireceivedan“ACT6”or“NoticeofIntentiontoForeclose”(Seeexampleonpage54)

5 months At least 20 days I received a Complaint (Seeexampleonpage55) Conciliation Conference (See County on page 30)

6 months At least 10 days I received the “Important Notice” letter (Seeexampleonpage56)

I received the “Praecipe” for Judgment(Seeexampleonpage57)

7 months My house is scheduled for Sheriff’s Sale There are still things (Seeexampleonpage58) you can do before the Sheriff’s Sale to try to save your home.

8 months

9 months Varies from 21/2

to 5 months

10 months Sheriff’s Sale is held and property is sold This means you do not own the property anymore.

11 months At least 45 days I received the “Complaint for Ejectment” This is a new lawsuit. Like above, you will get a letter titled “Important Notice” and another “Judgment”.

12 months TheSheriffhasgivenmeamove-outdate See Eviction Timeline by County for information on Sheriff’s Sale schedules and move out procedures.

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The Foreclosure Process ExplainedStep 1:I am behind on my mortgage paymentsIfyoufallbehindinyourmortgagepaymentsoryourmortgagecompanybillsyouforadditionalchargesyoucannotpayordonotbelieveyouoweandrefusetopay,youwillreceiveanynumberoflettersstatingthatifyoudonotpay,youmayfaceforeclosure,loseyourhomeand/orhavenegativecreditinformationreportedaboutyou.UntilyoureceivetheofficialnoticeinStep2,youarenotreallyinforeclosure(althoughitmaybetreatedthatwaybythemortgagecompanyorcreditagencies).

Step 2:I received a Notice of Intention to ForecloseIfyouarelessthan24monthsbehindonyourmortgage,arebehindlessthan$60,000anddonothaveafederallyinsuredmortgage(FHA),youmustreceiveanAct91noticebeforeyourmortgagecompa-nycanfileaforeclosurecaseagainstyouincourt—atthetopitsays“Act91NOTICE—TAKEACTIONTOSAVEYOURHOMEFROMFORECLOSURE”.ThisnoticeiscombinedwithaNoticeofIntentionandadvisesyouofhowmuchyouareallegedlybehindonpaymentsoranyotherbasisuponwhichthemortgagecompanyclaimsyouareindefaultandstatingwhatyoumustdotoreinstateyourmortgage.

BeforeanAct91Noticecanbesenttoyou,youmustbeatleast60daysinarrears.ThereisnominimumnumberofdaysyoumustbeinarrearsbeforeanAct6Noticecanbesent;yousimplymustbeindefaultunderthemortgage.Thesenoticesusuallycomebybothcertifiedandfirst-classmail.Theremustbeaseparatenoticeforeachpersonwhosignedthemortgage.MosthomeownersreceivethecombinedAct 91 Notice. The Act 91 Notice gives you 33 days to “cure”(getcaughtupon)thedelinquencyand,ifyouareeligible,tomeetwithahousingcounselortoapplyforthe“HomeownersEmergencyMortgageAssistanceProgram”(HEMAP)programofthePennsylvaniaHous-ingFinanceAgency.(FormoreinformationonHEMAPseepage19orvisithttp://www.phfa.org/counseling/hemap.aspx)

Ifyou“cure”thedelinquencyor,ifyouareeligibleforHEMAP,youmeetwithahousingcounselorwithinthat33dayperiod,nomortgageforeclosureactioncanbestartedincourtandthemortgagecompanycannotforecloseonyourhomewhileyouhaveapendingHEMAPapplication.(Note:YoucanstillapplyforHEMAPafter33daysbutitwillnotstopforeclosureproceedings.)

IfyouarenoteligibleforHEMAP/Act91youwillreceiveanAct6NoticeinsteadofanAct91Noticeor“NoticeofIntentiontoForeclose.”Youwillhave30daysto“cure”(getcaughtupon)thedelinquencybeforeanyforeclosurecasecanbefiledagainstyouincourt.ThereisnominimumnumberofdaysyoumustbeinarrearsbeforeanAct6Noticecanbesent;yousimplymustbeindefaultunderthemortgage.NOTE:IfyouhaveanFHAloanwithanoriginalbalancehigherthan$256,023,youwillnotgetanAct91noticeoran Act 6 Notice but you will get a notice telling you your rights.FHAloansarenoteligibleforHEMAP.

Step 3:I received a ComplaintIfyoudonot“cure”yourdelinquencyormeetwithahousingcounselorwithin33days,themortgagecompanymustfilealegaldocumentinthelocalCommonPleasCourt,calleda“complaint”,claimingthatyouareindefaultofthemortgageanddeclaringthattheloanisdueandpayableinfull.Theforeclosurecannotbefileduntilatleast120daysafterthefirstmissedpayment.

Service of the mortgage foreclosure complaint. The Sheriff’sofficeinyourcountymusthanddeliveracopyofthemort-gageforeclosurecomplainttoanadultatthehomeowner’sresidence(unlesstheCourthaspermittedadifferentformofservice,suchaspostingonyourdoororcertifiedmail).InPhiladelphia,servicecanalsobemadeby a private process server.

Responding to the mortgage foreclosure complaint. Youhave20daysfromthedatetheSheriffdeliveredthecomplainttorespondeitherbyfilingpreliminaryobjectionsorananswerintheCommonPleasCourt.Youmustalso“serve”(sendbymail)acopytothelawyerforthemortgagecompany.

Philadelphia Only: Conciliation Conference. The PhiladelphiaCourtofCommonPleashasthe“ResidentialMortgageForeclosureDiversionProgram”tohelphome-ownerssavetheirhomes.Foreclosuresofowner-occupiedhomeshavea“conciliationconference”scheduledwhenthecaseisfiled.Homeownersreceiveanoticestatingwhentheircourtconferenceisscheduled.Beforeappearingincourt,homeownersmustprepareaproposaltoresolvethemortgagedefaultandsendittothelawyerforthemortgagecompany.Homeownerscandosobyschedulinganappointmentwithacertifiedhousingcounselingagency(seetheHousingCounselingAgencyDirectory).AppointmentscanbescheduledbycallingtheSaveYourHomePhillyHotline.

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Attheconference,themortgagecompanylawyerwillbethere,alongwithacourt-appointedmediatorifoneisrequested.Defaultjudgmentcannotbetakenbythemortgagecompanyduringtheconciliationprocess.However,homeownersmustbepreparedtofilearesponsetotheforeclosurecomplaintonedayaftertheendoftheprocessinordertoavoidentryofaforeclosurejudgmentifanagreementisnotreached.

Bucks County:ConciliationConference(Seepage10formoreinformation).TheBucksCountyCourtofCommonPleashasthe“MortgageForeclosureDiversionProgram”tohelphomeownerssavetheirhomes.Foreclosuresofowner-occupiedhomesmayrequesta“conciliationconference”within10daysofwhenthecomplaintisserved.Theconferencewillbeconductedbythecourt-appointedmediator.

Defaultjudgmentcannotbetakenbythemortgagecompanyuntilatleast20daysaftertheconciliationconference.Therefore,homeownersmustbepreparedtofilearesponsetotheforeclosurecomplaint20daysaftertheconferenceinordertoavoidentryofaforeclosurejudgmentifanagreementisnotreached.

Delaware County:Borrowersmayparticipateinaconferencewithahousingcounselorandobtaina30-daystayofforeclosure.Thepurposeofthestayistogivetheborrowerstimetoworkwiththelendertofindawaytoavoidforeclosure.Formoreinformation,gotowww.co.delaware.pa.us/sheriff/realestate.htmlandclickon“AdministrativeOrderandNoticeofForeclosureProgram.”

Montgomery County:TheCourtofCommonPleasofMontgomeryCountylaunchedapilotmortgageforeclosurediversionaryprogramforhomeownersofowner-occupiedpropertieswhoarethesubjectofresidentialmortgageforeclosurecomplaintsfiledonorafterJune1,2015withatotaldebtof$300,000orless.(Commercialpropertiesandthoseincludedindivorce, estates or bankruptcy proceedings will not be includedintheprogram.)

Uponthefilingofthecomplaint,anautomaticstayoftheforeclosureproceedingsisissued.Aconcilia-tionconferenceisscheduledforapproximately5to6weeksafterthefilingofthecomplaint.Anoticeissentwith the scheduling order encouraging the homeowner(s)tocontactahousingcounseloratClarifi,aHUDapprovedconsumercreditcounselingagency(www.clarifi.orgor800-989-2227).ThehousingcounselorsareavailableFREEofCHARGE.

Attheconference,homeownerswillhaveanopportunitytospeakwithhousingcounselors(iftheyhavenotalreadydoneso)andlegalaidattorneys.Homeownersandlenderswillspeakdirectlywitheachotherandattempttoreachanagreementor

resolution.Lenders’counselmustattendthescheduledconferenceswithknowledgeofthe casesandwillingnesstoattempttoreacharesolution.Homeownersmustattendthescheduledconferenceinordertostayintheprogram.

Step 4:I received the “Important Notice” letterIfyoudonotfilearesponsetothemortgageforeclosurecomplaint,themortgagecompanylawyermustsendyouanoticeofdefaultinformingyouthatyouhavenotrespondedtothecomplaintandthatjudgmentcanbeenteredagainstyouifyoudonotfilearesponseintheCommonPleasCourtwithin10daysoftheNotice(thedayitwassent,notthedayyoureceiveit).

Step 5:I received a Judgment and my house is scheduled for Sheriff’s SaleIfyoustilldonotfilearesponsetothemortgageforeclosurecomplaint,themortgagecompanycantakea“default”judgmentagainstyou.Atthesametime,themortgagecompanywillfilea“WritofExecution”andscheduleaSheriff’sSaleofyourhome.Thelengthoftimevariesfromcountytocounty(anywherefrom2to5months)betweenentryofdefaultjudgmentandthedateoftheSheriff’sSale.TheSheriffmustdeliveranoticeofthesaletoeachpersonwhosignedthemortgageandpostabigSheriff’sSalesignonyourdoor.

NOTE: IfyourhousesellsatSheriff’sSale,younolongerownitandthereisnothingyoucandotosaveyourhome(unlesstherewasatechnicaldefectintheforeclosureprocess,whichisextremelyrare).SeeCountyspecificinformation.

Step 6:Sheriff’s Sale is held and property is soldIfyouhavenottakenanyactiontopreventtheSheriff’sSalefromtakingplace,(suchashavingthejudgmentopened,“re-instating”themortgage,areintheprocessofgettingaHAMPloanmodificationorfilingabankruptcypetition),andifthemortgagecompanyhasmetalltherequirementsfortheSheriff’sSaletoproceed,thesalewill take place in a public place, usually the local county courthouse.Oncesomeonebuysyourhomeatthesale(oftenthemortgagecompanyitself),younolongerownit.However,youdonothavetoleaveyourhomeatthattime.

Sometimes,thenewowner(whichcouldbeanagentforthebank)maytrytocontactyou.Theymayoffer“cashforkeys”—moneyforyouinreturnforapromisetomoveoutbyanagreedupondateoroffertoallowyoutostayandpayrent.Thelawdoesnotrequirethenewownertodoanyofthis.Acceptingtheseoffersisyourdecision.Ifyoudonotreachanagreementwiththenewownertheywillprobablyproceedtoejectyou.

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Step 7:I received a “Complaint for Ejectment”Thenewownerofthehousecannotremoveyoufromthehome,onlytheSheriffcan.Theymayaskordemandthatyouleave,butyoucanchoosetoremaininpossessionofthehouseuntilaseparatecourtcase,calledan“ejectmentaction”,isbroughtagainst you and won by the new owner. Again, the mortgagecompanyorotherbuyerattheSheriff’sSalemustfileanothercomplaintinthelocalCommonPleasCourt,thistimeclaimingthatyounolongerhavearighttopossessyourhomebecauseyoulostlegaltitletoitintheSheriff’sSale.

NOTE:Ifyouchoosetoremaininthehouse,thenewownerhastherighttodemandfairmarketvaluerent.Often,theydonottrytocollectthis,butyoushouldknowtheycandemandthatmoneyintheejectmentsuit.

Serviceoftheejectmentcomplaint.TheSheriff’sofficeinyourcountymusthanddeliveracopyoftheejectmentcomplainttoeachadultpersoninpossessionofthehouse(unlesstheCourthaspermittedadifferentformofservice).InPhiladelphia,servicecanalsobemadebyaprivateprocessserver.

Respondingtotheejectmentcomplaint.Youhave20daysfromthedatetheSheriffdeliveredthecomplainttorespondtothecomplaintbyfilingeitherpreliminaryobjectionsorananswerintheCommonPleasCourt.Youmustalso“serve”(sendbymail)acopytothelawyerforthemortgagecompanyorotherbuyer.Ifyoudonotfilearesponsetotheejectmentcomplaintthelawyerforthemortgagecompanyorotherbuyermustsendyouanoticeofdefault(entitled“ImportantNotice”),informingyouthatyouhavenotrespondedtothecomplaintandthatjudgmentcanbeenteredagainstyouifyoudonotfilearesponseintheCom-monPleasCourtwithin10daysoftheNotice(thedayitwassent,notthedayyoureceiveit).

Step 8:The Sheriff has given me a move-out dateIfyoustilldonotfilearesponsetotheejectmentcomplaint,themortgagecompanyorotherbuyercantakea“default”judgmentagainstyou.Atthesametime,themortgagecompanyorotherbuyerwillfilea“WritofExecution”ora“WritofPossession.”TheSheriffwilldeliverthisnoticetothehouse.

Philadelphia County:WritsofPossessionarenotissuedondefaultjudgment.Eitheramotionortrialmusthappenfirst.

TheSheriffwillalsoscheduleatimebywhichyoumustbeout.IfyouremainbeyondthattimeaDeputySheriffcangoouttoyourhomeandforciblyevictyou.ThelengthoftimevariesfromcountytocountydependingupontheworkloadoftheSheriff’soffice,buttheSheriff’sofficeisnot allowed to take longer than 90 days to evict you once thewritisfiled.Insomecounties,arepresentativeoftheSheriff’sofficewillnotifyyouafewdaysbeforecomingouttoevictyou,butthisisnotrequired.Youstillhavearighttokeepallofyourpersonalpossessionsfromthehome.

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READ THIS FIRST:IfyourhousereachesthepointwhereaSheriff’sSaledateisscheduled,itiscrucialthatyouactquickly.Itisalsostronglyrecommendedthatyoudonotdoitalone;yourchancesofsuccessonyourownatthispointarenotinyourfavor.Findaprofessionalhousingcounselororforeclosuredefenseattorneywhohasthepractical experience, as well as extensive knowledge on the issue to help you.

IfyouhaveaSheriff’sSalescheduled,thesalecanbepostponed(mostcommonlyreferredtoas“stayed”)orstopped(alsocalled“cancelled”)voluntarilyorinvoluntarilybyanorderofthecourt.ThemortgagecompanycanvoluntarilyinstructtheirattorneystopostponeorcanceltheSheriff’sSale.Ifthemortgagecompanyhasagreedtopostponeorstopthesale,getwrittenconfirmationandverifytheinformationwithyourcounty’sSheriff’sDepartment.Youshouldnotethenewsaledateinyourrecords.Ifthemortgagecompanyrefusestovoluntarilypostponeorstopthesale, you have the right to ask the court to stay or postponethesale.YoumayneedtoobtainacourtordertopostponesalebyfilingaPetitiontoStay.

Petition to PostponePetitionscanbefiledupuntilthedayoftheSheriff’sSale.However,ifyouarefilingwithintheweekoftheSale,youwillbeaskedtoexplainwhyyouarefilingatthattime.YouwillneedtoexplaintotheJudgewhyyouneedadditionaltimeandwhatyouplantodotoresolvetheforeclosure.CommonreasonsforpostponingtheSheriff’sSaleincludeapplyingforaloanmodification,listingthepropertyforsale,gettingmoneytogethertobringthemortgagecurrent,orpreparingtofileforbankruptcy.

Right to ReinstateUpuntilonehourbeforetheSheriff’sSale,youcan“reinstate”themortgagebypayingthemortgagecompanyanymissedpayments,latecharges,courtcosts,andattorney’sfees.Becarefulthatyouarenotchargedexcessiveattorney’sfeesbecausetheymustbe“reasonable”andactuallypaidbythemortgagecompany.Thereareseveralwaystogetmoneytoreinstate.PennsylvaniarunsaprogramcalledHEMAP,whichhelpshomeownersbringtheirmortgagestocurrentstatus.Otherlocalorganizationsprovidegrantstohelpbringloanscurrent.Fundsmustbebycertifiedcheck.

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Right to Pay Off in FullUpuntilonehourbeforetheSheriff’ssale,youcansatisfythemortgageorjudgementbypayingthecompleteamountowedonthemortgage.Ifthereisajudgement,youmustpaytheamountsetbythecourtinthejudgement,plusinterest.Ifthereisnojudgement,youhavetogetapayofffigurefromthemortgagecompanyoritslawyers.Thereareseveralwaystogetmoneytopayoffsuchasrefinancingyourhouseintoanewmortgage.Thestate,federalgovernment,non-profitorganizations,andevensomeprivatebankshaveprogramstorefinancehomeownersintomoreaffordableloans.

Working with the LenderManylendershaveprogramsthatallowsomeborrowerstochangethetermsoftheirmortgage(called“modification”)toresolveadelinquency.Notalllendersofferloanmodifications.Ifyouhaveapendingloanmodificationapplication,anditisyourfirstapplication,orifyouhavebeenacceptedforaloanmodification,yourmortgagecompanycannotfileaforeclosurelawsuit.Ifthelawsuitwasalreadyfiledbeforeyouapplied,thelenderstillhastoconsideryouforthemodificationandtheycannotsellyourhouseatSheriff’sSaleuntilyourapplicationisreviewed.

TheConsumerFinancialProtectionBureauintroducednewrulesthathelpprotectconsumersfromunnecessaryandwrongfulforeclosure.Undertheserules,iftheservicersreceivedacompletedlossmitigationpackageatleast37dayspriortothesaledate,thelendermustnotconductasaleonthehomeunlesstheapplicationisdenied,withdrawn,ortheborrowerfailstoperformunderthetermsofthelossmitigationagreement.

BE CAREFUL – Just because you are working with a lenderdoesnotmeantyouareintheloanmodifica-tionprocess.IfyouhaveaSheriff’sSalescheduled,youshouldALWAYSverifywiththelenderandtheSherifftoconfirmthatthesaleisstoppedorpostponed(alsocalled“stayed”).ManylenderswilltalktopeopleaboutresolvingtheproblemwhilethehousecontinuestogotoSheriff’sSale.Donotletthishappentoyou!

Rescue LoansThereareprogramsdesignedtohelppeoplegetoutofpredatorymortgagesand,inexchange,givepeoplefairlypricedloans.Theseprogramsdifferintheirrequirements,applicationpolicies,andotherrules.

How Can I Prevent the Sheriff’s Sale?

Petition to Strike the JudgmentIfajudgmentistakenagainstyou,butsomethingwaswronginthewaythejudgmentwasdone,youcanfileaPetitiontoStriketheJudgment.Theerrorsthatallowajudgementtobestrickenincludeimproperservice,lackofjurisdiction,andotherproceduralerrors.Ifgranted,itisasifthejudgementwereneverissued.Youcanthenrespondtothecomplaintandfighttheforeclosure.Pleasenote:filingthispetitiondoesnotstoptheSheriff’sSale.OnlywhenthecourtgrantsthepetitionistheSheriff’sSaletopped.Itcantakeseveralmonthsforacourttograntapetition.IfyouwanttostoptheSheriff’sSalewhilethecourtconsidersthepetition,youneedtofileaseparatepetitiontostaytheSheriff’sSale(seebelow).

Petition to Open JudgmentIfjudgmentistakenagainstyouandyouhaveagooddefense,youcanfileaPetitiontoOpenJudgmentwithin10daysandhavethedefaultjudgementsetaside.(YoucanstillfileaPetitiontoOpenJudgmentafter10daysfromthedateofthedefaultjudgment,but you would also have to show excusable neglect in notrespondingandthatyouactedpromptlyonceyoufoundoutthatjudgementwasentered.)Ifgranted,youcanthenrespondtothecomplaintandfighttheforeclosure.Pleasenote:filingthispetitiondoesnotstoptheSheriff’sSale.OnlywhenthecourtgrantsthepetitionistheSheriff’sSalestopped.Itcantakeseveralmonthsforacourttograntapetition.IfyouwanttostoptheSheriff’sSalewhilethecourtconsidersthepetition,youneedtofileaseparatepetitiontostaytheSheriff’sSale(seebelow).

Petition to Stay or PostponeYoucantrygoingtoajudgeandaskingthemtostay(postpone)thesalewhileyouworkouttheproblem.Youhavetofileaformalmotionwiththecourttodothis.PhiladelphiaCountyhasaformpeti-tiondesignedforpeoplewithoutlawyers.Insomeinstances,thejudgemayrequireyoutoprovideprotectiontothemortgagecompanyforthecostsofthe delay.

Thisprotectionisoftenintheformofabondormoneydepositwiththecourt.Postponingthesaledoesnotstopitforever,itonlypostponesit.Ifthesaleisstayed,itwillusuallybeforatleastthreemonthssincetheSheriff’sSalewouldneedtobereadvertisedandnewnoticesmustbesentout.Youstillneedtocomeupwithawaytoresolveyourmortgagedelinquency.

What About Bankruptcy?UpuntilthemomentbeforetheSheriff’sSale,youcanstaythesalebyfilingabankruptcyinthefederalbankruptcycourt.Ifyoufileduringthehourimmediatelybeforethesale,itwillstopthesale.However,youmayneedtotakefurtherstepsiftheSheriffdidnotreceivenoticeofthebankruptcyintime.ItisagoodideatofilebankruptcythedaybeforeatthelatesttonotifythemortgagecompanyandSheriff.

BUT BEWARE! Filing the bankruptcy petition does not solvetheproblemcompletely.Bankruptcyrequireseverythingtostop(includingtheSheriff’sSale),sothatyou can propose a plan to the bankruptcy court and the courtcanfigureouthowtohandleyourfinances.Ifyoufilea Chapter 7 bankruptcy, you either have to immediatelybringthemortgagefullycurrent,surrenderthe house, or pursue another option such as a loan modification.IfyoufileaChapter13bankruptcy,youcanberequiredtohavethecourtconfirm(approve)aplanunderwhichyouwillmakepaymentsover3-5yearstobringthehousemortgagecurrent.Duringthose3-5years,you are still in bankruptcy.

Beforefilingbankruptcy,youmustgetcreditcounselingfromabankruptcycourt-approvedcounselor.Visittheofficiallinkathttps://www.justice.gov/ust/list-credit-coun-seling-agencies-approved-pursuant-11-usc-111.Ifyoudonothavethecreditcounselingcertificatewhenyoufilebankruptcy, it is likely that the bankruptcy will be dismissedandwillnothelpyousaveyourhomefromforeclosure.

Getalawyertohelpyou.Filingabankruptcyyourselfisa lot like doing your own taxes, but without instructions. Therearealotofformsandmanyrulesthatarenoteasytounderstand–particularlywithaChapter13bankruptcy,during which you propose a plan to catch up on your mortgage.Mistakeswhenfilingcanhavebigconsequences.

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Sheriff’s Procedures: Foreclosure Sales & Ejectment

Bucks CountyTiming between filing Writ of Execution and date of Sheriff’s Sale on a foreclosure case:Approximatelythreemonths(scheduleavailableonwebsite).SalestakeplaceonthesecondFridayofeachmonth,withtheexceptionofthesecondFridaysthatfallonadaythecourthouseisclosedandareheldintheBucksCountyAdministrationBuilding,Commissioners’MeetingRoom,1stfloor,55EastCourtStreet,Doylestown,PA18901.

Procedure once judgment is entered in an ejectment case, and a Writ of Possession is filed:Notice is provided, typically within one week, dependingondeputies’back-log.

Timing and details of notice to former owner and/or occupants regarding final, forcible eviction in an ejectment case:30daysminimumbySheriff’sOfficepolicy(unlessthereareextenuatingcircumstancesthatrequirelessnotice);aparticulardatefortheevictionisprovidedtotheformerownerand/oroccupantsoftheproperty;a$125depositmustbepostedbythemortgagecompany’slawfirmtowardthecostsofalocksmith,movingandstorageofanypersonalpossessionsstillatthepremises.

Other information provided:$2,000depositmustbepostedbythemortgagecompany’slawfirmatthetimeoffilingtheWritofExecutiontohavethepropertylistedforSheriff’sSaletocovertheSheriff’sFeesandadvertisingcosts;theunusedportionwillbereturnedeitherafterthesaleorifthecaseis resolved and the sale does not take place.

General Sheriff’s office website for Sheriff’s Sale listings:www.buckscounty.org/government/rowOfficers/Sheriff

Contact information:Sheriff’sOfficeEdwardJ.Donnelly,SheriffBucks County Justice Center100NorthMainStreet,floorB-2Doylestown,PA18901MainNumber:215-348-6124RealEstate:215-348-6132CivilRates:215-348-6134CivilRates(outofCounty):215-348-6122

Chester County

Timing between filing Writ of Execution and date of Sheriff’s Sale on a foreclosure case:Approximatelythreemonths(scheduleavailableonwebsite).Salestakeplaceonthe3rdThursdayofeachmonthat11:00a.m.,exceptDecemberandareheldattheChesterCountyJusticeCenter,Sheriff’sDepartment,201WestMarketStreet,Room3300.

Procedure once judgement is entered in an ejectment case, and a Writ of Possession is filed:Notice is provided within 30 days, depending on deputies’back-log

Timing and details of notice to former owner and/or occupants regarding final, forcible eviction in an ejectment case:Sheriff’sdeputyservesformerowner/occupantswithwritofexecutionandprovidesbetween6and30days’noticeofthedateofforcibleejectment(usuallytheactuallengthofnoticeisaboutthreeweeks);aparticulardatefortheevictionispro-videdonthewritpostedonthepropertytotheformerowner/occupantsoftheproperty;themortgagecompany’slawfirmorthatofanyothernewownerofthepropertymustconfirmthattheyarereadytoproceed24hoursin

advanceofthescheduledejectmentdateandarrangeforalocksmith;theformerowner/occupantsaregiventheop-portunitytotakeanyposessionswiththemthattheycanputintheirvehicleorotherwiseremovefromthepremisesandcandesignatetheirownstoragefacilityinlieuofthestoragefacilityarrangedbythemortgagecompanyorothernewowneroftheproperty.

Other information provided:$2,000depositmustbepostedbythemortgagecompany’slawfirmatthetimeoffilingtheWritofExecutiontohavethepropertylistedforSheriff’sSaletocovertheSheriff’sFeesandadvertisingcosts;theunusedportionwillbereturnedeitherafterthesaleorifthecaseis resolved and the sale does not take place.

General Sheriff’s office website:https://pa-chestercounty2.civicplus.com/167/Sheriff

Specific Website for sales information:https://pa-chestercounty2.civicplus.com/3262/Sher-iff-Sales

Specific Website for sale listings: http://sheriffsales.chesco.org/sheriffsales/

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Contact information:Chester County Justice CenterCarolynB.Welsh,Sheriff201 West Market Street, Suite 1201WestChester,PA19380-0991Phone:610-278-3331CivilProcess:610-344-5978RealEstate:610-344-6859

Delaware County

Timing between filing Writ of Execution and date of Sheriff’s Sale on a foreclosure case:Approximately3monthsafterforeclosurejudgmentisentered,dependingonwhenthePlaintiffsubmitspaperworktoscheduleaSheriff’sSale.(Deadlinesareonthewebsite.)SalestakeplaceonthethirdFridayofeachmonthat11:00a.m.(butifthethirdFridayisaholiday,thesalewillbeheldadayearlier,onThursday).SalesareheldintheCountyCouncilMeetingRoomonthefirstflooroftheGovernmentCenterBuilding,DelawareCountyCourtHouse,FrontStreet&VeteransSquare,Media, PA 19063.

Procedure once judgment is entered in an ejectment case and a Writ of Possession is filed:Notice is provided, typically within one week, depending ondeputies’back-log.

Timing and specificity of notice to former owner and/or occupants regarding final, forcible eviction in an ejectment case:(1) Firstthewritofpossessionisserved.(2) The Sheriff’sOfficesetsadate,typicallyonetotwoweekslater(unlessspecialcircumstancesjustifyanimmediateejectmentwithoutfurthernotice).TheSheriff’sofficeservesnoticewiththatdateontheformerownerand/oroccupantsbymailandbypostingtotheproperty.(3)Onthatdate,theSheriff’sdeputieswillreturntoforciblyevictanyonewhohasnotalreadymovedout.

Other information provided:$2,000depositmustbepostedbythemortgagecompany’slawfirmatthetimeoffilingthewritofexecutiontohavethepropertylistedforSheriff’sSaletocovertheSheriff’scommissionandadvertisingcosts;theunusedportionwillbereturnedeitherafterthesaleorifthe case is resolved and the sale does not take place.

General Sheriff’s office website for Sheriff’s Sale listings:www.co.delaware.pa.us/sheriff/realestate.html

Contact information:MaryMcFallHopper,Esquire,SheriffDelawareCountyCourtHouse201W.FrontStreet,Room101Media, PA 19063MainNumber:610-891-4296Fax:610-891-1765RealEstate:610-891-4305

Montgomery County

Timing between filing Writ of Execution and date of Sheriff’s Sale on a foreclosure case: Deedisrecordedwithin30days(forathird-partybuyer),orwithin45days(forabank/attorneybuyer).

Procedure once judgment is entered in an ejectment case, and a Writ of Possession is filed:Notice is provided within 30 days, depending on deputies’backlog.

Timing and specificity of notice to former owner and/or occupants regarding final, forcible eviction in an ejectment case:Sheriff’sdeputyservesformerowner/occupantswithaWritofPossessionandprovidesa30daynoticetovacatetheproperty.After30dayshasexpiredSheriff’sDeputieswillscheduleadateforeviction;themortgagecompany’slawfirmmustprovideamovingtruckandstoragefacilitiesforanypersonalpossessionsstillatthepremises.

Other information provided: $3,020mustbepaidbythemortgagecompany’slawfirmatthetimeoffilingthewritofexecutiontohavethepropertylistedforSheriff’sSale.Thedepositisappliedtoallpre-salecosts,advertisingandpost-salecosts,bereturnedtotheplaintiff’sattorneyafterthesaleorifthecase is resolved.

General Sheriff’s office website:http://www.montcopa.org/413/Real-Estate-Sheriff-Sales

Specific website for sale listings:https://salesweb.civilview.com/Sales/SalesSearch?coun-tyId=23

Contact information (see next page)

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Length of time between filing Writ of Execution and date of Sheriff’s Sale: Approximatelythreemonthsbetweenfilingandsale(seescheduleavailableonthewebsite).SalesgenerallytakeplaceonthefirstTuesdayofeachmonth,checkwebsiteforupdates.Thesalestakeplaceat9:00a.m.atTheFirstDistrictPlaza,3801MarketStreet,3rd Floor, Philadelphia, PA. Procedure once judgment is entered and Writ of Possession is filed in post-foreclosure ejectment action:Notice Provided.

Length and specificity of notice to former owner and/or occupants regarding forcible eviction:ThePhiladelphiaCourtofCommonPleasservestheformerowner/occupantswithaWritofPossessionandprovidesa30daynoticetovacatetheproperty.After30dayshaveexpiredPhiladelphiaSheriff’sRealEstateDivisionwillprovidetheformerowner/occupantswithaformalevictionnotice;themortgagecompanymustprovideamovingtruck,locksmithandstoragefacilitiesforanypersonalpossessionsstillatthepremises.

Other information provided:Themortgagecompanymustpaya$1,500depositatthetimeoffilingthewrit.

General Sheriff’s office website for Sheriff’s Sale listings:http://www.officeofphiladelphiasheriff.com/en/real-es-tate/sheriffs-sale-webapp

Contact InformationPhiladelphiaCityandCountySheriff’sDepartmentJewellWilliams,Sheriff100 South Broad Street, 5th FloorPhiladelphia, PA 19110MainPhoneNumber:215-686-3530RealEstatePhoneNumber:215-686-3535,3534RealEstateFax:215-686-3971

Contact Information:MontgomeryCountySheriff’sDepartmentSeanKilkenny,SheriffCourt House, 1st FloorP.O.Box311Norrristown, PA 19404Phone:610-278-3331Fax:610-278-3832RealEstateDivision:610-278-3338

Philadelphia County

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Section II:How can I prevent mortgage foreclosure?

Inresponsetothenationalforeclosurecrisistherearemanyprogramsavailabletohomeownerstohelpthemstayintheirhomes.Thissectioncontainsinformationaboutproactiveactions,suchashousingcounselingprograms,forpeoplewhoarestrugglingtopaytheirmortgagebutarenotinforeclosureandpeoplewhohavereceivedaforeclo-surenoticebuthavenotyetlosttheirhomes.

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Housing Counseling and Preventing ForeclosureStudiesoffamiliesinforeclosureacrossthenationfoundthathomeownersinmortgagedefaultwhoreceivecounselingweretwiceaslikelytoavoidforeclosureasthosewhodidn’t.Ifyouhavemissedyourmortgagepaymentand/orarestrugglingtokeepyouhomefromforeclosureahousingcounselorcanhelp.Evenifyouareafraidtotalktoyourlenderthecounselorcanintervenedirectlyonyourbehalf.

Housingcounselorsaretrainedandcertifiedprofessionalswhoareknowledgeableaboutmortgages,foreclosure,realestate,housingterminologyandconcepts.Theyknowthevariousaspectsoftheforeclosureprocessesandmayhaveaccesstocommunityresourcesthatcanhelpduringafinancialcrisis.Makeanappointmenttoseeacounselorrightaway.

What do housing counselors do?Duetothecomplexityoftheforeclosureprocessforeclosurecounselorsmustbeproficientinallphasesofforeclosureintervention.Theyaretrainedinnational and local policies, procedures and processes. Somecasesmayrequireaseriesofsessionswiththecounselor during which the counselor will analyze your budget,spending,credit,loanandcourtdocuments.Thecounselorwillcontactyourlenderandnegotiateforanaffordableresolutiontoyoursituation.Ifyouareinthedarkaboutwhattodoorareexperiencingfrustrationsanddifficultieswithyourmortgage,thereishelp:callahousingcounselorimmediately.

How can housing counselors help with foreclosure prevention and other mortgage problems?Housingcounselorscanhelppeopleatriskofforeclosure.Thisincludespeopleexperiencinghardshipsthatmakeitdifficulttopaytheirmonthlymortgage.Housingcounselorsknowaboutprogramsyoucantakeadvantageofsothatyoumightavoidlosingyourhome.Thesooneryoutakeaction,themorethecounselorcanhelp you.

Atthistimeofrisingmortgagedelinquenciesandforeclosures,housingcounselorsareplayingaspecialroleinhelpinghomeowners.Counselorscanevaluatehomeowners’optionsandtakestepstorestructuretheirmortgagestoaffordablerates.Thismayresolveadelinquencyandpreventforeclosureofthehome.

Sinceeveryone’ssituationisuniqueandmanyprogramsareavailable,itisimportanttoreceiveassistancefromaknowledgeablehousingcounselor.Theywillhelpidentifyandpursuetheoption(s)bestsuitedtoeachhomeowner.Housingcounselorscanhelphomeownersnavigateorapplyfortheprogramsdesignedtopreventforeclosureandkeepmortgagesaffordable.

What is the benefit of seeing a housing counselor?Housingcounselingsessionsareone-on-one.Youwillreceivespecializedadvicethatisuniquetoyoursituation.Youwillalsoreceiveanindividualizedactionplanthattakesyouruniquegoalsandcircumstancesintoconsideration. In the counseling sessions, a housingcounselorwillevaluateyourfinances.Counselorswillalsohelpyouexplorewhatoptionsyoumayhavetopreventforeclosure;restructureamortgagethatyoufeelhasunfairtermsorhowtorefinanceyourhome.Anotherbenefitofseeingahousingcounseloristhatacounselorcanhelptoidentifyscamsandabusivelendingthatarenot in your best interest.

How much does it cost?Approvednonprofithousingcounselingagenciesarefree.Theonlyfeeyoumayhavetopayisforyourcreditreportinordertoobtainyourcreditscore.Youareentitledtoafreecreditreportonceayear,butyouhavetopayforyourcreditscore.Avoidfor-profitcompaniesthatchargefortheirservices,especiallythosewhosolicityouthroughthemail.Workingwithalegitimatecounselorcancertainlyincreaseyourchancesofkeepingyourhome—butbewaryofpeoplewhopromiseasurething.Getthedetailsofyourtransaction,alongwithanypromises,inwritingfirst.Keepthefollowingtipsinmindwhen you are seeking help:

•Donotdelayinprovidingtherequesteddocumentstoyour counselor.•Donotfeelpressuredtosignpaperworkthatyouhavenotreadthroughcarefullyorthatyoudonotunderstand.•Donotsignblankforms.•Donotagreetoarepaymentplanthatisnotaffordable.•Donotagreeorsignanythingthattransfersthetitle(yourownership)toanotherpersonorparty.•Askifyourhousingcounselorcandiscussyourdocumentswiththeirlegaladvisor.

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Mortgage Foreclosure Rescue and Loan Modification ScamsAsifthestressandfearoflosingahomethroughforeclosureweren’tenough,nowhomeownersmustbeonalertforscamartiststryingtotakemoneythatcouldbeusedtosavethehome.Therearepeopleandcompanieswhopreyonvulnerablehomeowners.Theymakeemptypromisestoworkthingsoutonbehalfofthehomeowner.Often,thehomeownerisleftwithaforeclosureintheirhandsandthepersonwhowassupposedtoworkthingsouttooktheirmoneyanddidlittleornothingtopreventtheforeclosure.Itisimportanttobringtheattentionofhomeownerstoscamssotheycanprotectthemselvesandincreasethechancesofstayingintheirhomes.

Althoughforeclosurerescuescamsareontherise,theyaren’talwayseasytospot.Herearefiveredflagstoindicatethatyoumaybedealingwithaloanmodificationscammer:

1. A company or person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. Theymaypocketyourmoneyanddolittleornothingtohelpyousaveyourhomefromforeclosure.

2. A company/lawyer/person guarantees they can stop a foreclosure or get your loan modified. Nobodycanmakethisguaranteetostopforeclosureormodifyyourloan.Legitimate,trustworthyHUD-approvedcounselingagencieswillonlypromisethattheywilltrytheir very best to help you.

3. A company/lawyer/person advises you to stop paying your mortgage company and pay them instead. Despitewhatascammerwilltellyou,youshouldneversendamortgagepaymenttoanyoneotherthanyourmortgagelender.Theminuteyouhavetroublemakingyourmonthlypayment,contactyourmortgagelender.

4. Beware of claims of “government-approved” or “official government” loan modifications. Theymaybescamartistsposingaslegitimateorgani-zationsapprovedby,oraffiliatedwith,thegovernment.Contactyourmortgagelenderfirst.Yourlendercantellyouwhetheryouqualifyforanygovernmentprogramstopreventforeclosure.Andremember,paymentisnotnormallyrequiredtobenefitfromgovernment-backedloanmodificationprograms.

5. A company/lawyer/person you don’t know asks you to release personal financial information online or over the phone. Youshouldonlygivethistypeofinformationtocompaniesthatyouknowandtrust,likeyourmortgagelenderoraHUD-approvedcounselingagency.

Common Loan Modification ScamsPhony Counseling or Foreclosure Rescue ScamsScamsartistsposeasacounselorandtellyoutheycannegotiate a deal with your lender to save your house but onlyifyoupaythemafeefirst.Theymayeventellyounot to contact your lender, lawyer or housing counselor andthattheywillhandlealldetails.Theymayeveninsistthatyoumakeallmortgagepaymentsdirectlytothemwhiletheynegotiatewiththelender.Onceyoupaythefee,orafewmortgagepayments,thescammerdisappearswithyourmoney.

Fake “Government” Modification ProgramsSomescammersmayclaimtobeaffiliatedwith,orapprovedby,thegovernment,ortheymayaskyoutopayhigh,up-frontfeestoqualifyforgovernmentmortgagemodificationprograms.Thescammer’scompanynameandwebsitemaysoundlikearealgovernmentagency.Youmayalsoseetermslike“federal,”“TARP”orotherwordsrelatedtoofficialU.S.Governmentprograms.Yourlenderwillbeabletotellyouifyouqualifyforanygovernmentprogramstopreventforeclosure.Youdonothavetopaytobenefitfromtheseprograms.

Rent-to-Own or Leaseback SchemeAscammerurgesyoutosurrenderthetitleofyourhomeaspartofadealthatwillletyoustayinyourhomeasarenterandthenbuyitbackinafewyears.Hemaytellyouthatsurrenderingthetitlewillpermitaborrowerwithabettercreditratingtogetnewfinancingandkeepyoufromlosingyourhome.However,thescammermayhavenointentionofeversellingthehomebacktoyou.Thetermsofthesedealsusuallymakebuyingbackyourhomeimpossible.Ifthenewborrowerdefaultsontheloan,you’llbeevicted.

Variations: 1.Thescammerraisesyourrentovertimetothe pointthatyoucan’taffordit.Aftermissing severalrentpayments,youareevicted,leaving the“rescuer”freetosellyourhouse. 2.Thescammerofferstofindabuyerforyour home,butonlyifyousignoverthedeedand moveout.Thescammerpromisestopayyou someoftheprofitswhenthehomesells.Butthe scammersimplyrentsoutyourhomeandkeeps theprofitswhileyourlenderproceedswiththe foreclosure.Youloseyourhomeandarestill responsiblefortheunpaidmortgagebecause transferingthedeeddoesnotaffectyour mortgageobligation.

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Bankruptcy to Avoid ForeclosureThescammermaypromisetonegotiatewithyourlenderorgetrefinancingonyourbehalfifyoupayafeeupfront.Insteadofcontactingyourlenderorrefinancingyourloan,hepocketsthefeeandfilesabankruptcycaseinyourname—sometimeswithoutyourknowledge.

Abankruptcyfilingoftenstopsahomeforeclosure,butonlytemporarily.Filingbankruptcystopsanycollectionandforeclosurewhilethebankruptcycourtadministersthecase.Eventuallyyoumuststartpayingyourmortgageorthelenderwillbeabletoforeclose.Youcouldlosethemoneyyoupaidtothescammerandyourhome.

Reverse Mortgages to Avoid ForeclosureAreversemortgageisaloanproductthatwasintendedforseniorcitizens(generally62andover)toborrowagainsttheequityintheirhomeiftheyhaveotherexpensestotakecareofbuthavealimitedincome.Reversemortgageloanstypicallyrequirenorepaymentforaslongasyouliveinyourhomeandallowborrowerstocontinueowningtheirhomes.Oncetheseniorcitizenleavesthehomeorpassesaway,theentirebalancebecomesdue,andifitisnotpaidoff,thehomemaybesold.Althoughareversemortgagemaybeappropriateforsomepeople,scammershavepickedupon this vulnerable population and used the reverse mortgageasaforeclosurerescueoptionforhomeowners.Thereareotherwaystosaveyourhouse;thereversemortgageshouldbethelastoptionafteralloptions have been exhausted.

Inthecontextofareversemortgage,youshouldnevertransferownershiporchangepropertyordeedownership.Ifyouarebeingaskedtotransferownership,youshouldnotsignanydocumentsandseek legal counsel.

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I’m not in foreclosure, but struggling to make my mortgage paymentsTheproductsandprogramslistedinthissectionareresourcesthatmaybehelpfulforpeoplenotyetinforeclosure,butareexperiencingadifficulttimemakingthemonthlymortgagepayment.Descriptionsoftheproductsandservicescontainvitalinformationinasimplifiedreadableformat.

FHA Rate and Term Refinances

Purpose: RefinancingofexistingFHAornon-FHAmortgagesforhomeownerscurrentontheirexistingmortgage.

Program: Refinancingoption

ProgramFeatures: Fixedrateoradjustableratemortgage •Maximumterm—30Years •Maximumloan-to-valueratio(LTV)onFHA1stmortgage—97.75% (unlessborrowerwilloccupyaformerinvestmentpropertyandtheexistingmortgageisunder12months old-85%)Ifthereissubordinatedebt,thecombinedloan-to-valueratioremains97.75percentunless subordinatefinancingcarriesmorerestrictiverequirements. •Interestratesdecidedbylenderbasedoncurrentmarketrates •1-4unitproperties,includingcondominiumsandmanufacturedhousingpermanentlyaffixedto foundation •Upfrontmortgageinsurancepremium(MIP):1.75% •MonthlyMIP:.8%to1.05% •MonthlyMIP:1.3%to1.35%

MaximumAmount: $420,000(notincludingtheupfrontMIP,iffinancedintothenewloan).Thisamountisbasedona1unit residence.ThemaximumloanamountremainsineffectuntilSeptember30th,afterwhichitissubjectto revision.

SubordinateFinancing Norestrictionsonneworexistingsubordinatefinancing.CombinedLTVnottoexceed97.75%

EligibilityRequirements: •Borrowermustbeowner-occupant. •Asustainedhistoryofemployment. •Sufficientandfullydocumentedincome. •Borrowermustbecurrentonexistingmortgage. •MinimumFICOscoreofatleast500.Forfinancinggreaterthan90%LTV,theminimumcreditscoreis 580. •MustqualifyunderstandardFHAunderwritingguidelines.

GeographicAreaServed: All50states

CostsorFees: Customaryandreasonableclosingcostsandprepaidexpenses.Closingcostsandexpensesmaybe includedinnewmortgageamount.

AdministeringAgency: FederalHousingAdministration

Procedures: ContactanFHA-approvedlender

ContactInformation: ForalistofFHA-approvedlenders,visitwww.fha.govorcall1-800-CALL-FHA

MoreInformation: www.fha.gov

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FHA Short Refinance

Purpose: Refinancingofnon-FHAmortgagesforhomeownerswhoowemoreontheirmortgagesthanthevalue

Program: Refinancingoption

ProgramFeatures: •Fixedrateoradjustableratemortgage •Maximumterm—30years •Maximumloan-to-valueratio(LTV)onFHA1stmortgage:97.75% •Interestratesdecidedbylenderbasedoncurrentmarketrates. •Mandatoryprincipalwrite-downbylenderataminimumof10%ofunpaidbalanceoforiginalloan. •Combinedmortgagedebtmustbewrittendowntoamaximumof115%ofcurrentvalueofhome. •Upfrontmortgageinsurancepremium(MIP):1.75% •MonthlyMI:0.8%to1.05%

MaximumAmount: $379,500(fora1unitresidence)

SubordinateFinancing: •Norestrictionsonneworexistingsubordinatefinancing.CombinedLTVnottoexceed115%.

EligibilityRequirements: •Homeownermustbeinanegativeequityposition,i.e.,owemoreontheirexistingmortgagethantheir homeisworth •Homeownersmustbecurrentontheirexistingmortgagetoberefinancedorhavesuccessfully completedaqualifyingthree-monthtrailpaymentplan. •Musthaveconsentoffirst-lienholderstowrite-offatleast10%ofunpaidprincipalbalance(mandatory principalwrite-downbyoriginallenderataminimumof10%ofunpaidbalanceoforiginalloan). •Propertymustbeowner-occupied. •Homeowners’FICOcreditscoremustbegreaterthanorequalto500. •ExistingloantoberefinancedmustnotbeaFHA-insuredloan. •Homeowner’stotalmonthlymortgagepayment,firstandanysubordinatemortgage(s),cannotbe greaterthan31%ofgrossmonthlyincomeundertherefinancedloanunlessthetotalmonthlydebt paymentdoesnotexceed48%ofgrossmonthlyincome,inwhichcasethemonthlymortgagepayment cannotbegreaterthan35%ofthegrossmonthlyincome. •Homeowners’totalmonthlydebtpayment,includingallrecurringdebts,cannotbegreaterthan50%of grossmonthlyincomeaftertherefinancing. •Existingloantoberefinancedmaynothavebeenbroughtcurrentbytheexistingfirstlienholder,except throughanacceptablepermanentloanmodification,normaypremiumpricingbeusedtopayoffexisting debtstoqualifytheborrower. •StandardFHAunderwritingrequirementsapply. •Borrowermaynothavearealestaterelatedconvictioninlast10years. •Borrowerswhohaveacompletedpermanentmodificationmaybeeligible.

GeographicAreaServed: All50states

CostsorFees: Customaryclosingcostsandprepaidexpenses.Closingcostsandexpensesmaybeincludedinnew mortgageamount.

AdministeringAgency: FederalHousingAdministration

Procedures: ContactanFHA-approvedlender.

ContactInformation: ForalistofFHA-approvedlenders,visitwww.fha.govorcall1-800CALLFHA(1-800-225-5342).

ForMoreInformation: www.fha.gov

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I’ve received a notice and am in foreclosure.Atafederalandlocallevel,programswerecreatedorenhancedtohelpthegrowingnumberofpeoplewhowerethreatenedwiththelossoftheirhomethroughforeclosure.Theprogramsinthissection,suchasmortgagemodificationsorcourtintervention,maybeusefulforindividualsfurtheralongintheforeclosureprocess.

Homeowners’ Emergency Mortgage Assitance Program (HEMAP)

Purpose: HEMAPwascreatedbyAct91of1983,andwasdesignedtoprotectPennsylvanianswho,throughnofault oftheirown,arefinanciallyunabletomaketheirmortgagepaymentsandareindangeroflosingtheir homestoforeclosure.HEMAPisaloanprogramtopreventforeclosure.

Program: Emergency/RescueLoan

ProgramFeatures: •Currently(2019)4.50%APR.Rateresetsannually. •Twotypesofassistanceareavailabledependingontheincomeandfinancialsituation: (1)Continuingmortgageassistanceloans.Loanrecipientsofacontinuingloanmustbeginrepayment immediatelyfollowingterminationofcontinuingloandisbursements.(2)Non–continuingmortgage assistance loans. •Loanrecipientsofanon–continuingloanmustbeginrepaymentimmediatelyfollowing loan closing. •AllHEMAPloanrecipientsarerequiredtopayupto35percentoftheirnetmonthly income,asdeterminedbythePennsylvaniaHousingFinanceAgency,towardstheirtotal housingexpense.Repaymentissetbasedonincome,butmustbeatleast$25.00permonth.

MaximumAmount: AllHEMAPloans,continuingornon–continuing,arelimitedtoamaximumof24monthsfromthedateof themortgagedelinquencyortoamaximumof$60,000.00,whichevercomesfirst.

EligibilityRequirements: •Atleast60daysdelinquentontheirmortgageandhavereceivedanAct91Noticefromtheirlender. •One–ortwo–familyresidence;(Ahomeusedprimarilyforbusinesspurposesisnoteligible). •PropertymustbeowneroccupiedandlocatedinthestateofPennsylvania. •Favorablemortgagecredithistorypriortothedelinquencyduringthepreviousfiveyears. •Homeowner(s)mustbesufferingfinancialhardshipduetocircumstancesbeyondtheircontrol. •Homeowner(s)musthaveareasonableprospectofresumingfullmortgagepaymentswithin24months andpayingthemortgageinfullbymaturity. •PHFA/HEMAPmusthaveatleasta3rdlienposition. • FHA Title II loans are not eligible.

GeographicAreaServed: StateofPennsylvania

CostsorFees: Nocosttohomeownerfortheapplication.

Procedures: •Anapplicantmustmeetwithanapprovedcounselingagency(listofagenciesisattachedtotheAct91 notice)foraface-to-facemeetingwithin33daysfromthedateoftheAct91Noticeinordertostopa foreclosurecasefrombeingfiledincourtandtobegintheapplicationprocess. •Within30daysofthemeeting,thecounselormustsubmittheapplicationandsupportingdocumentation to HEMAP. •TheapplicantmustalsoprepareaLetterofCircumstanceexplainingtheexactreasontheirmortgageis delinquentandincludeverification. •Theapplicationprocesscantakeuptofourmonthstocomplete. •Whileapplicationsareprocessed,foreclosurecasescannotcommenceiftheproceduraltimelimitsare met. •Forthosewhoapplyafter33daysfromtheAct91Noticedate,foreclosurecasescanproceedduringthe applicationprocess,butthisshouldnotstopahomeownerfromapplyingiftheyareeligible.

ContactInformation: LocalPHFAapprovedagency.SeetheHousingCounselingAgencyDirectory.

ForMoreInformation: GeneralInformation:1-800-342-2397orvisitwww.phfa.org/consumers/homeowners/hemap.aspx

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Purpose: TohelpborrowerswithFHA-insuredwhohavefallenbehindonmortgagepaymentsbecomecurrentandsavethe homefromforeclosure.

Program: FHAloanshaveanumberofprogramsavailable,includingrepaymentagreements,loanmodifications,andthe PartialClaimoption,inwhichaportionofthearrearsorprincipalbalanceisconvertedintoasecondmortgagethat ispayableatthematuritydateoftheloan.

ProgramFeatures: ThelossmitigationprogramrequirementsforFHA-insuredmortgagesarecontainedintheSingleFamilyHousing PolicyHandbook(HUDHandbook4000.1)

Differentlossmitigationoptionsareavailabledependingontheborrower’savailableincomeandreasonfordefault. Borrowerswhoqualifyforaloanmodificationwillfirstneedtoenterintoatrialperiodplan(usuallylasting3-4 months)andpayeachpaymentontime.Afterthetrialplaniscompleted,theservicerwilloffertheborrowera permanentmodification.

Eligibility Requirements: Themortgageloanisasingle-familymortgageinsuredbytheFederalHousingAdministration.

FormalandInformalForbearanceEligibilityCriteria: ForbearancePlansarearrangementsbetweenaMortgageeandBorrowerthatmayallowforaperiodofreducedor suspendedpaymentsandmayprovidespecifictermsforrepayment.

InformalForbearancePlansareoralagreementsbetweenthehomeownerandthelenderwhichallowingfor reducedorsuspendedpaymentsforaperiodofthreemonthsorlessandmayprovidespecifictermsfor repayment. InformalForbearancePlansareavailableifthehomeownercanbringthemortgageuptodaywithinthreemonths. FormalForbearancePlansarewrittenagreementsexecutedbyoneormoreoftheBorrowers,allowingforreduced orsuspendedpaymentsforaperiodgreaterthanthreemonths,butnotmorethansixmonthsandsuchplansmay includespecifictermsforrepayment. TheBorrowerdoesnotneedtoshowalossofincomeorincreaseinlivingexpensestoqualifyforaFormal ForbearanceAgreement TheBorrowerdoesneedtoprovideabudgetshowingthat85percentoftheBorrower’ssurplusincomeissufficient tobringtheMortgagecurrentwithinsixmonths;or ThemortgagecompanymustdeterminethattheBorrowerisineligibleforotherHomeRetentionOptionsbefore offeringaFormalForbearanceAgreement.

Special Forbearance Eligibility Criteria: ASpecialForbearanceistemporarysuspensionofmortgagepaymentsforborrowershavingtroublemaking mortgagepaymentsduetounemployment. Oneormoreofthemortgageborrowershasbecomeunemployed,leadingtomissedpaymentsonthemortgage. Theborrowerisanowner-occupantofthepropertyandwillstayinthepropertyforthelengthoftheagreement. Whenallborrowers’incomeistakenintoaccount,themortgagepaymentiscurrentlyhigherthan40%ofthe currentmonthlyincome. Onlyborrowersexperiencingunemploymentareeligibleforthisprogram. Themortgagecompanymayreduceorsuspendpaymentsforuptotheamountof12monthlypaymentstoallow theborrowertimetoobtainnewincome. Oncethe12monthperiodhasended,ortheborrowerbecomesemployedagain,theborrowershouldbe consideredforotherlossmitigationoptionstobringtheloancurrent.

LoanModificationEligibilityCriteria: ALoanModificationisapermanentchangetooneormoretermsofaborrower’smortgageloanagreement,such asachangetotheinterestrate;capitalizationofDelinquentprincipal,interestorescrowitems;extension oftimeavailabletorepaytheMortgage;and/orre-amortizationofthebalancedue. Atleast12monthsmusthavepassedsincetheloanorigination. Theborrowermustbeabletoshoweitheralossinincomeoranincreaseinlivingexpenses Atleastoneborrowermusthavedocumentedincomesufficienttosupportthenewmonthlypayment,andhave surplusof$300permonth,butnotenoughincometoqualifyforaformalorinformalforbearanceagreement. ThemortgageinterestrateissetattheFreddieMacPrimaryMortgageMarketSurveyRate,andtheloanis amortizedover30years.Toqualifyforamodification,thismustresultintheloanbeingreducedby10%or$100, whichever is greater.

Theborrowermustcompleteathree-monthTrialPeriodPlan,makingallpaymentsontimebeforetheLoan Modificationcanbyfinalized. Thepropertymustbetheborrower’sprincipalresidence. TheborrowercannothavehadaLoanModificationorFHA-HAMPagreementwithinthepast24months.

FHA Loss Mitigation (HAMP)

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FHA-HAMPEligibilityCriteria TheFHA-HAMPOptionisausesaLoanModificationandaPartialClaimtoallowtheMortgagetobereinstated,by establishinganaffordablemonthlypaymentandprovidingforprincipaldefermentasneeded.APartialClaimis asubordinatemortgagefromtheDepartmentofHousingandUrbanDevelopmentthatassistsinreinstatinga

delinquentmortgage,anddoesnotneedtobepaiduntiltheloanmatures. Atleast12monthsmusthavepassedsincetheloanorigination. Theborrowerhasmadeatleastfourpaymentsonthemortgage Theborrowermustbeabletoshoweitheralossinincomeoranincreaseinlivingexpenses. Theborrowerdoesnothavesufficientincomefortheformalforbearance,informalforbearanceorloanmodification options. Themortgagearrearsareplacedinapartialclaim,whichcannotexceed30%oftheunpaidprincipalbalance.The interestrateissetattheFreddieMacPrimaryMortgageMarketSurveyRate,andtheremainingprincipalbalance isamortizedover30years.Toqualifyforamodification,thismustresultinapaymentthatisnomorethan40%of theborrower’sgrossmonthlyincome. Theborrowermustcompleteathree-monthTrialPeriodPlan,makingallpaymentsontimebeforetheLoan Modificationcanbyfinalized. Thepropertymustbetheborrower’sprincipalresidence. TheborrowercannothavehadaLoanModificationorFHA-HAMPagreementwithinthepast24months. Themortgagelienmustretainitsfirst-positionstatus.

GeographicArea Served: FHA Mortgage in all 50 states.

Costs or Fees: None

AdministeringAgency: FederalHousingAdministration

Procedures: •ServicersofFHA-insuredloansmustevaluateaborrowerlossmitigationoptionsandprovidetheappropriate application. •Forfreeassistancewiththeapplication,callaHUD-approvedhousingcounselingagency. •Housingcounselorswillassistyouwithcompletingandsubmittingtheapplicationtoyourmortgageserviceror Lender. • This information is not a guarantee of eligibility for the modification program.

FHA Loss Mitigation (HAMP) Continued

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Flex Modification

Purpose: FlexmodificationwasjointlydevelopedbyFannieMaeandFreddieMactoreplacetheirpriormodification programs,andwasintroducedwithLL-2016-06onDecember14,2016,replacingHAMP,Standard, Streamlined,andDisasterStreamlinedmodificationprogramswithafutureeffectivedateofOctober1, 2017.

Program: LoanModification

ProgramFeatures: TheModificationtargetsa20%P&Ipaymentreductionanda40%HousingExpense-to-IncomeRatio.

EligibilityRequirements: •Mustbeaconventionalfirstlienmortgageloan •Securedbyaprincipalresidenceandmustbeatleast60daysdelinquentoratriskofimminentdefault, ormustbeatleast60daysdelinquentiftheloanissecuredbyasecondhomeorinvestmentproperty •Mortgageloanmusthavebeenoriginatedatleast12monthspriortoevaluation •Loanmustnotbesubjectto •arecourseorindemnificationarrangement; •anapprovedliquidationworkoutoption; •anactiveandperformingforbearanceplanorrepaymentplan,unlessotherwisedirectedby Fannie Mae •acurrentofferforanothermortgageloanmodificationorotherworkoutoption;or •anactiveandperformingmodificationTrialPeriodPlan. •Loanmustnothavebeenmodifiedthreeormoretimespreviously •BorrowermustnothavefailedaFlexModificationTrialPeriodPlanwithin12monthsofbeingevaluated •LoanmustnothavereceivedaFlexModificationandbecome60daysormoredelinquentwithinthefirst 12monthsoftheeffectivedate

GeographicAreaServed: Nationwide

CostsorFees: Nocosttohomeownerfortheapplication.

AdministeringAgency: FannieMaeandFreddieMac

Procedures: •Iftheloanisfewerthan90daysdelinquent,submitaBorrowerResponsePackage,ifnot,automatically considered • Capitalize arrears •SettheinterestratetothecontractualrateortheFannieMaeStandardModificationInterestRatede pending on which is lower and the MTMLTV •Setthetermoftheloanto480months •IftheMTMLTVisgreaterthan100%,forebearprincipalatthelesseroftheamountneededtogetto 100%MTMLTVor30%oftheUPB •Additionalprincipalforbearancemaybeavailableifnecessarytoachievea20%P&Ipayment reductionanda40%HTI •Modificationmustresultinafixed-rateloan

ContactInformation: LocalHousingCounselingagency.SeetheHousingCounselingAgencyDirectory. Mortgage Servicer

ForMoreInformation: https://www.knowyouroptions.com/loanlookup https://ww3.freddiemac.com/loanlookup/

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Reverse Mortgage Repayment Plans for Tax and Insurance Charges

Purpose: AllowsseniorhomeownerswithHUD-insuredreversemortgageswhoarefacingforeclosureforfailureto paypropertytax,hazardinsurance,orotherpropertychargestonegotiatepaymentagreementstosave theirhomes.

Program: ManyhomeownerswhohaveReverseMortgages(includingHECMs)areresponsibleforpayingtheir propertytaxesandinsurancepremiums(called“propertycharges”).Iftheydonotpay,themortgage companymayseektoforecloseontheproperty.Thisprogramallowshomeownerswhohavefallenbehind ontheirpropertychargestoenterintoarepaymentagreementtopaybackthechargesoveraperiodof up to 5 years.

ProgramFeatures: •Whenhomeownersfailtopaytheirpropertytaxorhazardinsurancepremiums,thereversemortgage companymay,afternoticetothehomeowner,paythechargesandtheforecloseonthehouseifthe homeownerdoesnotpaythechargesback. •Homeownerswhohavedefaultedontheirmortgagesduetounpaidpropertychargesshouldcontact aHUD-CertifiedHousingCounselorforAssistance.TheHUD-CertifiedHousingCounselorcanassistthe homeownerincompletinganapplication,whichincludesproofofthehomeowner’sincomeandbudget. •ReverseMortgagecompaniesarerequiredtocalculateanaffordablepaymentbasedonthetaxes homeowner’sbudget,spreadingthepaymentsoutforupto5years.Homeownersmustpaycurrentyear andpropertyinsurancepremiumsastheybecomedue. •Homeownersover80yearsofagemayalsorequestan“At-Risk”extension,whichdelaysthe foreclosure,iftheyareexperiencingcriticalcircumstancessuchasaterminalillness,longtermdisability, orterminalillnessofafamilymemberreceivingcareattheresidence.

Maximum: Upto5yearstorepaypropertychargestoavoidforeclosure.

CostsorFees: Nocosttohomeowner

Administrator: Theprogramisadministeredbut,individualmortgageservicersandoverseenbytheDepartmentof HousingandUrbanDevelopment,whichinsuresreversemortgages.

Procedures: •Contactthemortgagecompanyfortheapplicationforarepaymentplan. •WorkwithaHUD-CertifiedHousingCounselortocompletetheApplication. •ContacttheNationalHUDServicingCenterat(800)594-9057ifyouencounterproblemsapplyingfor thisprogram.

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Purpose: Tohelphomeownerssavetheirhomesthroughearlycourtintervention.

Program: HomeownersattendtheirscheduledConciliationConferencetoattempttoagreeuponanaffordable mortgagework-outplaninordertoavertforeclosure.

ProgramFeatures: Whenaforeclosurecomplaintisfiledandthehomeisowneroccupiedthenthecourtwillschedulea ConciliationConferenceandsendtheappointmentdateandtimetothehomeowner. •IfthehomeownerisbeingforeclosedonandhasnotbeenscheduledforaConciliationConference,they canfilearequestwiththeOfficeofJudicialRecordsforaconferencehearingaslongasthepropertyis owner-occupied. •TheCertificateofparticipation-requesttotheOfficeofJudicialRecordsisonlyforthosepropertieswhere thecomplaintwasfiledbefore9/8/08orwhenthepropertywasdeemednot-owneroccupiedat commencement,notscheduledforconciliation,andthehomeownerchallengesthatassertion. •HomeownershavetheopportunitytosavetheirhomesbyattendingtheirConciliationConferenceand makinganagreementwiththemortgagecompany. •Beforeappearingincourt,thehomeownermustmeetwithanDHCDapprovedhousingcounseling agencytoprepareandsubmitaproposaltoresolvethemortgagedefaultandsendittothemortgage companyandthelawyerrepresentingthemortgagecompany. •Ahousingcounselorwillworkwiththehomeownertodetermineifaloanwork-outispossiblewiththe mortgagecompany. •Freelegalrepresentationmaybeavailableforthosewhoqualify.

EligibilityRequirements: •PropertymustbelocatedintheCityandCountyofPhiladelphia. •Propertymustbeasinglefamilyhome,1–4residentialunits,condominiumunitoraresidentialco-op unit. •Homeownermustresideinproperty. •Mortgageforeclosurecomplaintagainstthepropertymusthavebeenfiled.

GeographicAreaServed: PhiladelphiaCounty

CostsorFees: Nofees.

AdministeringAgency: CityofPhiladelphiaandthePhiladelphiaCourtofCommonPleas

Procedures: •HomeownerswillreceiveanoticeoftheirConciliationConferencedatealongwiththeComplaint. •HomeownershouldcalltheSaveYourHomePhillyHotlinefirst(seebelow).Theywillbescheduledfor anappointmentwithahousingcounselor. •HomeownerswhodidnotreceiveaConciliationConferenceNoticecanrequestonebyfilinga “Defendant’sCertificationofPremisesAsResidentialOwner-occupiedandRequestforConciliation Conference”formwiththeOfficeofJudicialRecordsnolaterthan10daysbeforethedateoftheSheriff Sale.Proposalsandfinancialdocumentationmustbesubmittedtothemortgagecompanyatleast14days beforetheConciliationConference. •HomeownersattendtheConciliationConferencewiththeirhousingcounselor(andlawyerifdesired), andnegotiatewiththelawyerrepresentingthemortgagecompany.Ifanegotiatedagreementcannotbe reached,aConferencecanberequestedwithaJudgeProTemwhoactsasamediator.

ContactInformation: SaveYourHomePhillyHotline215-334-4663

For More Information: Moreinformationandformsareavailableat:www.courts.phila.gov

City of Philadelphia’s Residential Mortgage Foreclosure Diversion Program

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Purpose: Tohelphomeownerssavetheirhomesand/orexplorealternativestoforeclosurethroughcourt intervention.

Program: HomeownersattendaninformalconferenceattheBucksCountyBarAssociationtoattempttoworkout anaffordablemortgagework-outplanoralternativeinordertoavertforeclosure.Lawyersfromthe BucksCountyBarAssociation,whoaretrainedasmortgageforeclosuremediatorsserveprobonoasthe mediatorsattheconferences.Thehomeownerremainsintheprogramsolongasthepartiescontinueto workoutanalternativetoforeclosuresothatseveralconferencesforasingleactionmaybenecessary.

ProgramFeatures: •Beforeappearingincourt,homeownersmustmeetwithaHUDapprovedhousingcounselingagency toprepareandsubmitaproposaltoresolvethemortgagedefaultatleasttwoweekspriortothe conference.Theproposalmustbeforwardedtotheattorneysforthelenderandalsotothelender. •Housingcounselorswillworkwithhomeownertodetermineifaloanwork-outispossiblewiththelender. •Freelegalrepresentationmaybeavailableforthosewhoqualify,butlegalrepresentationisnot necessarytoparticipateintheprogram. •Therearenoincomerestrictionstogothroughtheprogram.

Eligibility Requirements: •PropertymustbelocatedinBucksCounty. •Propertymustbe1-4residentialunits,condominiumunit,oraresidentialco-opunit. •Homeownermustresideinproperty. •MortgageforeclosurecomplaintagainsttheresidentialpropertymusthavebeenfiledintheBucks County.

GeographicAreaServed: Bucks County

Costs or Fees: No cost.

AdministeringAgency: BucksCountyCourtofCommonPleas

Procedures: •Homeownerwillreceivean“UrgentNotice”tocalltheSaveYourHomeHotline.Thiscallmustbemade within10daysofreceivingthenoticeinordertoobtainhelp. •ThehomeownerwillbeputintouchwithaBucksCountyHousingCounselortoworkoutarrangements withthemortgagecompany.ThisserviceisFREE.Whentheconferenceisscheduled,theforeclosure actionisstayedbythecourt.Theforeclosureactionremainsstayeduntilthereisresolutionthroughthe conferenceprocess. •TheConciliationConferenceisnotmandatedbythecourt,itisoptional.Itisvitalthathomeownerscall thehotlinetoscheduleaConciliationConferenceandmeetwithahousingcounselorpriortothe conference,sothattheforeclosureactioncanbestoppedwhileattemptingalternativeresolutionto foreclosure.

ContactInformation: SaveYourHomeHotlineat1-866-760-8911

ForMoreInformation: http://www.buckscounty.org/docs/default-source/row-officers-documents/mortgageforeclosurediversion program.pdf

Bucks County Mortgage Foreclosure Diversion Program

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Delaware County Mortgage Foreclosure Diversion Program

Purpose: Tohelphomeownersavoidsheriff’ssaleandsavetheirhomes.

Program: Homeownersworkwithahousingcounselorinordertoavertforeclosurethroughnegotiatingwiththe lender.

ProgramFeatures: FreeforeclosurepreventioncounselingandassistancefromClarifi.

Eligibility Requirements: •PropertymustbelocatedinDelawareCounty. •Propertymustbe1-4residentialunits,condominiumunit,oraresidentialco-opunit. •Homeownermustresideinproperty. •Mortgageforeclosurecomplaintagainstthepropertymusthavebeenfiledforthisprogram.However, clientsmaycontactClarifibeforecomplaintisservedtoreceivefreeforeclosurepreventioncounseling assistance.

GeographicAreaServed: DelawareCounty

CostsorFees: Nofees.

AdministeringAgency: DelawareCountySheriff’sOfficeandClarifi.

Procedures: •Whenthesheriff’sdeputyservesthefirstcomplaint,the“actionofmortgageforeclosure,”the homeowneralsoreceivesawrittennoticeadvisinghimorhertocallClarifitorequestfreeassistance. •Callthehotlinetorequestassistancewithin30daysofreceivingthenotice.Ifthehomeownerfailsto callClarifi,theforeclosurewillproceed. •Oncetheeligiblehomeownercallsthehotlineandschedulesanappointment,Clarifiwillnotifythelender thattheclientisseekingremedyandforeclosurewillbedelayedfor30days.

Contact Information: ClarifiSaveYourHomeHotline:1-800-989-2227

For MoreInformation: www.clarifi.org

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Montgomery County Mortgage Foreclosure Diversion Program

Purpose: Tohelphomeownerssavetheirhomesandorexplorealternativestoforeclosurethroughcourt intervention.

Program: HomeownersattendaninformalconferenceattheMontgomeryCountyCourthousetoattempttoworkout anaffordablemortgagework-outplanoralternativeinordertoavertforeclosure.Appointedmasters,who aretrainedasmortgageforeclosuremediatorsserveasthemediatorsattheconferences.Thehomeowner remainsintheprogramsolongasthepartiescontinuetoworkoutanalternativetoforeclosuresothat severalconferencesforasingleactionmaybenecessary.

ProgramFeatures: •Beforeappearingincourt,homeownersmustmeetwithaHUDapprovedhousingcounselingagency toprepareandsubmitaproposaltoresolvethemortgagedefaultatleasttwoweekspriortothe conference.Theproposalmustbeforwardedtotheattorneysforthelenderandalsotothelender. •Housingcounselorswillworkwithhomeownertodetermineifaloanwork-outispossiblewiththelender. •Therearenoincomerestrictionstogothroughtheprogram.

Eligibility Requirements: •HomeownersofpropertieswhoarethesubjectofresidentialmortgageforeclosurefiledinMontgomery County. •Thejudgmentsought(outstandingbalanceofthemortgage)mustbe$300,000orless. •Homeownermustresideinproperty. •Propertieswhicharethesubjectofbankruptcy,estatesordivorceproceedingsarenotincluded.

GeographicAreaServed: MontgomeryCounty

Costs or Fees: No cost.

AdministeringAgency: MontgomeryCountyCourtofCommonPleas

Procedures: •Uponthefilingofthecomplaint,anautomaticstayoftheforeclosureproceedingsisissued. •Aconferenceisscheduledforapproximately5to6weeksafterthefilingofthecomplaint. •Anoticeissentwiththeschedulingorderencouragingthehomeowner(s)tocontactahousingcounselor atClarifi,aHUDapprovedconsumercreditcounselingagency.ThehousingcounselorsareavailableFREE ofCHARGE. •Homeownersmayberequiredtomeetwithahousingcounselorinpersonandprovidefinancial documents. •Homeownersmustattendthescheduledconferenceinordertostayintheprogram.

ForMoreInformation: http://www.montcopa.org/DocumentCenter/View/9173

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Section III:How do I prevent tax or water lien foreclosure?

Ifpropertytaxesormunicipalwaterandsewerservicebills(e.g.PhiladelphiaWaterDepartmentandWaterRevenuebills)areunpaidonahome,itispossibletolosethehomeifthecountysellsthehomeataRealEstateTaxSale.Thissectioncontainsinformationabouthowtoapplyforapaymentagreementorlow-incomeassistanceprogramtopreventlosingyourhomethroughtaxorwaterdelinquencyforeclosure.

Thissectionalsoincludesachartbrieflysummarizingthevariousstateandlocal“propertytaxrelief”programs,suchasthePhiladelphiaHomesteadExemptionandthePennsylvaniaPropertyTax/RentRebate,whichmayhelpreducepropertytaxbills.

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City of Philadelphia’s Owner-Occupied Payment Agreements for PropertyTaxes

Purpose: Allowsincome-eligiblehomeownerswithdelinquentpropertytaxestoenterintoanaffordablepayment agreementontheirresidence.

Program: Writtenpaymentagreement. PursuanttoPhiladelphiaCode19-1305,asamended.

ProgramFeatures: ProgrameffectiveOctober13,2013 •Thehomeownermustpaybetween5%-10%ofthehousehold’stotalmonthlyincometoward delinquentpropertytaxes.Minimummonthlypaymentis$0. •Paymentsaresetbasedonaformulausinghouseholdincome. •Ifhomeownerscannotafford5%to10%oftheirmonthlyincome,theycanrequestindividualized financialassessments(IFAs)todeterminehowmuchofthehousehold’smonthlyincomeisavailableto paytowardsthedelinquency. •UndertheIFA,minimumpaymentis$25permonth.IfapersonappliesforIFA,themonthlypayment istheextraincomecomputedbyadministeringagency.Monthlypaymentmayresultinbeinghigherthan thesetpercentageofhouseholdincome. •Nolump-sumpaymentisrequired. •Allnewpropertytaxesmustalsobepaidontime,althoughthehomeownercanstillapplyannuallywith theDepartmentofRevenueforaseparateinstallmentagreementforthecurrentpropertytaxesbefore February28ofthenewyearatthediscretionoftheagencyorcollectionfirm.Certainvery-lowincome homeownersmayqualifytohavetheircurrentyeartaxesincludedintheiragreementwithoutriskof defaulting.Ifcurrentyeartaxesarenotincludedintheagreement,failuretopaynewtaxesistreatedas adefaultoftheagreementandcanresultintheagreementbeingrevoked •Incentivesincludetollingofinterestandpenaltiesduringpaymentagreement,andsomeabatementof interestandpenaltiesuponsuccessfulcompletingofpaymentplan. •AppealprocesstotheTaxReviewBoardfordenialsofapplications,compliancedisputes,andother grievanceswithprogram.

MaximumAmount: NoMaximum

EligibilityRequirements: •Maximumhouseholdincomeof70%ofareamedianincome(about$56,210forafamilyof4). •Homeownermustresideinproperty. •Homeownermusthavelegalorequitabletitletotheproperty.Examplesincludenameondeed,lease purchaseagreementandinheritancethroughwillorintestatesuccession.Ifthehomeowner’snameis noteonthedeed,thehomeownerneedstotakesubstantialstepswithinthreeyearstobecometheowner ofrecord.TheSaveYourHomePhillyHotlinemaybeabletoprovideareferralforassistance. •HomeownermustnothavebreachedapreviousOOPApaymentplanagreement.Ifthehomeowner defaultsonanOOPApaymentagreement,asecondagreementisatthediscretionoftheadministering agency.

GeographicAreaServed: PhiladelphiaCounty

AdministeringAgency: PhiladelphiaDepartmentofRevenue;CityofPhiladelphiaLawDepartment

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City of Philadelphia’s Owner-Occupied Payment Agreements for PropertyTaxes (Continued)

Procedures: •CalltheSaveYourHomePhillyHotlineforareferraltoahousingcounselor.Thecounselorwillhelpyou completethewrittenapplication. •Writtenapplicationwithsupportingdocumentationwillbesubmittedtotheagencyorfirmcollectingthe debt. •IfaSheriff’sSaleisscheduled,housecannotbesoldwhileanapplicationispending. •Ifaccepted,theapplicantispresentedwithawrittenagreement.

Note: This written agreement may contain waivers of legal rights. You may wish to review the document with an attorney before signing. The administering agency may conduct annual review of income, called “redetermination.” If income has changed, the monthly payment amount can change accordingly. Failure of a homeowner to respond to a request for redetermination can result in default of the repayment agreement.

ContactInformation: SaveYourHomePhillyHotline:215-334-4663 LinebargerGogganBlair&Sampson,LLP:215-790-1117 GoehringRutter&BoehmLaw:516-735-1910 PhiladelphiaDepartmentofRevenue:215-686-6442 CityofPhiladelphiaLawDepartment:215-683-5207

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City of Philadelphia’s Installment Plan Agreements for Current PropertyTaxes

Purpose: Allowsseniorcitizens,income-eligiblehomeowners,andhomeownersshowingahardshiptoenterintoan affordablepaymentagreement.

Program: Writtenpaymentagreementtopaycurrentyearpropertytaxesinupto12installments. AccountmustbeincollectionswiththePhiladelphiaLawDepartmentorDepartmentofRevenue.

ProgramFeatures: Programappliestoseniorcitizens,incomeeligiblehomeowners,andotherhomeownersexperiencinga hardshiptoenterintoaninstallmentagreementtopaythecurrentyear’spropertytaxes. Ifpaymentagreementiscompletedsuccessfully,DepartmentofRevenuewillabateandwaiveadditions, penalties, and interest.

MaximumAmount: Nomaximumamount.Installmentagreementstopaycurrentrealestatetaxesmayrun8-12months.

EligibilityRequirements: •Householdmustqualifyaseitheraseniorcitizen,or50%ofAreaMedianIncome(about$40,150fora familyoffour) •Applicantmustberecordorequitableownerofproperty •Homeownermustresideinproperty

GeographicAreaServed: PhiladelphiaCounty AdministeringAgency: PhiladelphiaLawDepartmentorDepartmentofRevenue

Procedures: •ContactDepartmentofRevenueforappointmenttocompleteapplication. •Iflegalactionhasalreadybeencommenced,applicantsmayalsowishtocontacttheCityLaw Department. •YoumayalsocalltheSaveYourHomePhillyHotlineforareferraltoahousingcounselor.TheCity representativeorthecounselorwillhelpyoucompletethewrittenapplication. •Writtenapplicationwithsupportingdocumentationwillbesubmitted.

ContactInformation: SaveYourHomePhillyHotline:215-334-4663 PhiladelphiaLawDepartment:215-683-5207 PhiladelphiaDepartmentofRevenue:215-686-6442

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Philadelphia Property Tax Foreclosure ChartThischartismeanttogiveyouanideaofwhathappensifyoudonotdoanythingtostopthepropertytaxforeclo-sure.Thechartshowstheshortestamountoftimethatcanpassbetweeneachstep.Ateachstep,thereareactionsyoucantaketodefendagainstforeclosurethatwillalsoresultinendingorextendingthetimelinesbelow.Thefollow-ing section explains each step in detail.

Current Tax bill sent out in January, due by March 31

3 months More than 90 days I am behind on my property tax payments

5 months Within 60 days I received a “Notice Pursuant to 11305(2)(B)(.1) Warns taxpayer of unpaid bill and possibility of litigation to sell the house

24 months At least one year after I received a Rule to Show Cause tax year scheduling a court date Continuance granted by agreement of parties when defendantappears

26 months The court holds a hearing The court enters a decree permitting sale of the house

27 months My house is scheduled for Sheriff’s Sale There are still things you can do before the Sheriff’s Sale to try to save your home.

28 months

29 months Varies from 21/2

to 5 months

30 months Sheriff’s Sale is held and property is sold This means you do not own the property anymore.

31 months At least 45 days I received the “Complaint for Ejectment” Note: when right of This is a new lawsuit. redemption exists, cannot filefor9months

32 months The Sheriff has given me a move-out date See Eviction Timeline by County for information on Sheriff’s Sale schedules and move out procedures.

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Philadelphia Tax Foreclosure Process ExplainedStep 1: Tax Bills are MailedPropertytaxbillsaremailedinDecemberorJanuaryandshouldbepaidinfullbyMarch31sttoavoidpenalties,interest,andothercharges.IfthebillispaidinfullbyFebruary28th,taxpayersreceivea1%discountontheirbill.Ifataxpayerisunabletopaytheirbillinfull,theyshouldapplyforacurrent-yearinstallmentplanbyMarch31st.

Step 2: Taxpayer receives a Notice pursuant to Phila. Code 19-1305(2)(B)(.1)Ifataxpayerhasnotpaidtheirbillinfullorenteredintoacurrent-yearinstallmentplanbyMarch31st,theCityshouldsendaNoticepursuantto19-1305(2)(B)(.1)after60days(oraroundtheendofMay).ThisNoticewarnsthetaxpayeroftheunpaidtaxbillandthepossibilityoflitigationtoselltheproperty.TheCitymaysendasecondnotice90daysafterthemailingofthefirstNotice(oraroundtheendofAugust.)

Step 3: Taxpayer receives a Petition/Rule to Show Cause scheduling a court dateIftaxesremainunpaidattheendoftheyearinwhichtheyweredue,theCitymayfilealawsuit(byPetition)toget a court decree to sell the property. The Petition/Rule toShowCauseisthenoticeataxpayerwillreceiveofthislawsuit.Thetaxpayershouldreceiveacopybymailand by posting on the property.

Responding to the tax foreclosure petition. A taxpayerhas15–20days(dependingonthelanguageintheRule)fromthedatetheCitymailedorpostedthePetition/RuletorespondbyfilinganAnswerintheCommonPleasCourt.Evenifthetaxpayermissesthisdeadline,theyshouldstillfileanAnswerbeforethescheduledcourtdate.Thetaxpayermustalso“serve”(sendbymail)acopyoftheirAnswertothelawyerforthe City.

Hearing. The taxpayer should attend the scheduled Hearing.Ifthetaxpayerdoesnotattendthishearing,theCitymayreceiveaDecreeallowingthemtosellthepropertyatSheriff’sSale.Ajudgemaynotbepresentatthehearinganditmayresembleasettlementconference.LawyersfortheCitywillbethere.Thisisthetaxpayer’schancetonegotiateapaymentplanwiththeCity.Ifmoretimeisneeded,theCityandthetaxpayer can agree to continue the hearing to a new date45–60daysout.IfthetaxpayerandtheCityareunabletoreachapaymentagreementorotherdisputesremain,theHearingcanberescheduledinfrontofajudgewhocanruleontheissues.

Decree. IfthetaxpayerdoesnotattendtheHearingorifajudgerulesagainstthetaxpayer,theCitywillreceiveaDecreeallowingittosellthepropertyataSheriff’sSale.

ThetaxpayershouldreceivenoticeoftheDecree,thetaxpayerstillhastimetostopthesaleofthepropertyandmakearrangementstopaythetaxesowed.

Step 5:Sheriff’s Sale is held and property is soldIfthepropertywassoldatSheriff’sSale,itmeansthetaxpayer no longer owns the property. However, unlike inthecontextofmortgageforeclosuresthetaxpayercanstillsavetheirpropertythroughredemption.

IfthetaxpayerhasnottakenanyactiontopreventtheSheriff’sSalefromtakingplace(suchasenteringintoapaymentplantopaythetaxes),andiftheCityhasmetalltherequirementsfortheSheriff’sSaletoproceed,the sale will take place in a public place, usually the local countycourthouse.Onceathird-partypurchaserbuysthe property at the sale, the taxpayer no longer owns it. However,thetaxpayerdoesnothavetoleavethehomeatthattime,andthetaxpayerstillhasachancetosavetheirhome.

Right of Redemption. Ifapropertyisaresidenceandwascontinuouslyoccupiedforthe90dayspriortotheSheriff’sSale,anownermaypetitionthecourttoredeemthepropertywithinninemonthsoftheSheriff’sacknowledgmentofthedeedtothethird-partypurchaser. The taxpayer should be prepared to pay the purchasepriceofthepropertyatauctionplusapproximately10%tocovercosts.Ifthetaxpayercannotpaythisamountinalumpsum,bankruptcymaybe an option. The taxpayer should consult with an attorneytodeterminewhetherbankruptcyisafeasiblewaytoredeemtheirproperty.

Sometimes,thenewowner(whichcouldbeanindividualoranattorney)maytrytocontactyou.Theymayoffer“cashforkeys”—moneyforyouinreturnforapromisetomoveoutbyanagreedupondateoroffertoallowyoutostayandpayrent.Thelawdoesnotrequirethenewownertodoanyofthis.Acceptingtheseoffersisyourdecision.Ifyoudonotplantoredeemyourproperty,itmaybeinyourbestinteresttoacceptsuchanoffer.Ifyoudonotreachanagreementwiththenewownertheywillprobablyproceedtoejectyou.Remember,youhavetherighttoremaininyourpropertyuntilyourredemptionperiodexpiresevenifyoudonotplantoredeem.YouwillneedtodefendtheComplaintinEjectmentthough.

NOTE: Inadditiontoredemption,iftherewasadefectintheforeclosureprocess,thetaxpayermaybeabletohavethesalesetasideiftheypetitionthecourtwithinthreemonthsoftheSheriff’sacknowledgmentofthedeedtothethird-partypurchaser.Thetaxpayershouldconsultwithanattorney,iftheyfeeltherewasadefectintheforeclosureprocess.

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Step 6:Taxpayer receives a “Complaint in Ejectment”Thepurchaserofthehousecannotremoveyoufromthehome.OnlytheSheriffcandothis.Thepurchasermayaskordemandthatyouleave,butyoucanchoosetoremaininpossessionuntilaseparatecourtcase,calledan“ejectmentaction,”isbroughtagainstyouandwonbythepurchaser.ThepurchaseratSheriff’sSalemustfileanewlegalactionintheCourtofCommonPleasclaimingyounolongerhavearighttopossessyourhomeandtheCourtmustfindintheirfavor.

Service of the ejectment complaint. Either a representativefromtheSheriff’sOfficeoraprivateprocessservermusthanddeliveracopyoftheejectmentcomplainttoeachadultpersoninpossessionofthehouse(unlesstheCourthaspermittedadifferentformofservice).

Responding to the ejectment complaint.Youhave20daysfromthedatetheSheriffdeliveredthecomplainttoyoutorespondtothecomplaintbyfilingeitherpreliminaryobjectionsorananswerintheCommonPleasCourt.Youmustalso“serve”(sendbymail)acopytothepurchaserortheirlawyer.IfyoudonotfilearesponsetotheejectmentcomplaintthepurchaserortheirlawyermustsendyouaNoticeofDefault(entitled“ImportantNotice”),informingyouthatyouhavenotrespondedtothecomplaintandthatjudgmentcanbeenteredagainstyouifyoudonotfilearesponseintheCommonPleasCourtwithin10daysoftheNotice(thedayitwassent,notthedayyoureceiveit).

Filing an Answer. Youcanfileanansweryourself.IfyourhomewassoldatSheriff’sSaleduetounpaidtaxesandtheComplaintinEjectmentwasfiledfewerthanninemonthsfromthedatetheSheriffsignedthenewdeedtothepurchaser,youhavetherighttopossessyourhomeand you should say this in your answer.

Step 7:The Sheriff has given me a move-out dateIfyoustilldonotfilearesponsetotheejectmentcomplaint,thepurchasercantakea“default”judgmentagainstyou.Ifyourtimetoredeemthepropertyhasexpiredandyouhavenotredeemed,theCourtmayalsofindforthenewpurchaserandgrantpossessiontothem.Atthesametimejudgmentisentered,thepurchaserwillfilea“WritofExecution”ora“WritofPossession.”TheSheriffwilldeliverthisnoticetothehouse.

TheSheriffwillalsoscheduleatimebywhichyoumustbeout.IfyouremainbeyondthattimeaDeputySheriffcangoouttoyourhomeandforciblyremoveyou.ThelengthoftimevariesdependingupontheworkloadoftheSheriff’soffice,buttheSheriff’sofficeisnotallowedto take longer than 90 days to evict you once the writ is filed.Insomecounties,arepresentativeoftheSheriff’s

officewillnotifyyouafewdaysbeforecomingouttoevictyou,butthisisnotrequired.Youstillhavearighttokeepallofyourpersonalpossessionsfromthehome.

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City of Philadelphia’s Water and Sewer Payment Agreements and LowIncome Assistance Programs to Prevent Water Foreclosure

Purpose: PWDmaypursueaSheriff’sSaleforunpaidwaterdebts(inpractice,PWDhasimplemented a$5,000threshold)afterothercollectionmethodshavefailedtoresultinarepaymentagreementon outstanding arrears.

ProgramFeatures: Currently,PWDnotifiescustomersbyissuanceofa“NoticeofIntent”toseekCourtpermissiontosell thepropertytosatisfythebackbalance.

PWDmustcomplywithfurthernoticerequirementsimposedbythePhiladelphiaCode: Nolessthanninetydaysbeforefilinganywaterforeclosureaction,theRevenueDepartmentmust sendtothecustomer,anddelivertoeachdwellingunitattheserviceaddress,aWarningofRiskof WaterForeclosureActioncontainingthefollowinginformation: •abriefdescriptionofanypossiblelegalactionanditsconsequences,includingaclearand conspicuousstatement,whereappropriate,thatthecustomerwillbecomeindangeroflosing hisorherhomeorpropertyifheorshedoesnotact;abriefdescriptionofthe“Income-Based WaterRateAssistanceProgram”(describedbelow)andtheotherassistanceprograms availableforresidentialcustomers;thestepsthecustomermusttaketoenterintosuch programs,andthedeadlinefordoingso;andabriefdescriptionofanycharges,fees, penalties,orinterestthatmaybeimposed;

•thetotalamountrequiredtopayoffthearrearsinfull,thedatebywhichitmustbepaid, theaddresseswherepaymentscanbemade,andacceptedformsofpayment;

•astatementexplainingthetypesofotherCity-relateddebtthatmaybecapableofbeing lienedagainstapropertyincluding,withoutlimitation,propertytax,nuisanceand demolitionfeesandfines,andabriefexplanationofhowthecustomermayrequest confirmationastotheexistenceandamountsofanysuchdebt;

•listsofthefreehousingcounselingagenciesandthelegalservicesagenciesthatoffer relevantservicesandmaybeavailabletoassistthecustomer,includingaddressesandphone numbers.

Followingtheprovisionofnotice,theprocessleadinguptoaSheriff’sSaleisidenticalfortax andwaterforeclosure,e.g.,filingofaruletoshowcause,courtorder,publicadvertisement, etc.

Eligibility Requirements: Inordertoaccessanypaymentagreementorlow-incomeassistanceprogramtoavoidwater foreclosure,thepersonapplyingmustbethenamedcustomerofthePhiladelphiaWater Department/WaterRevenueBureau(PWD).Accordingly,anequitableownerorotheroccupant shouldtakeallnecessarystepstobecomeacustomerinordertoavoidforeclosure.The customershouldensurethatallunpaidwaterchargesfrompriorownersoroccupantsare transferredtothenewaccountinordertobeabletoaddressanyongoingorfuturecollection orenforcementactionthroughapaymentagreementortheTieredAssistanceProgramfor low-incomecustomers.

CustomersandtheiradvocatesshouldreviewthemostcurrentversionofPWDregulations, availableatwww.phila.gov/watertodeterminewhetheravailablepaymentagreementterms havebeenmodified.

NOTE:Customershavetherighttocurebreachedpaymentarrangementspriortoashutoff ofwaterservice.Althoughsomepaymentagreementsdescribedbelowmaynolongerbe available,thetermsmaystillbeimportantforpurposesofcalculatingcurepayments.

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City of Philadelphia’s Water and Sewer Payment Agreements and LowIncome Assistance Programs to Prevent Water Foreclosure (Continued)

Eligibility Requirements(Continued): StandardPaymentAgreementTerms(pursuanttoPWDregulationsineffectasofJuly2018): •Availabletocustomerswithhouseholdincomeabove250%ofFederalPovertyLevel •Initialpaymentequalto25%ofthebalance •Subsequentequalmonthlypaymentsforatermthatnormallywillnottoexceed18 months. •Ifservicehasbeenshutoff,paymentagreementtermstorestoreserviceare different,requiring50%down,andashorterperiodofinstallments.Ifservicehas beenshutoffafterbreachofapaymentagreement,PWDmayrequirethecustomerto pay100%ofthebalancetorestoreservice.PWDhastheabilitytorestoreserviceon morefavorableterms.

PaymentAgreementsforCustomersBetween150-250%FPL: •Paymenttermsmayexceed18months,maywaiveinitialdownpayments, and penalties do not accrue on outstanding balance. •Paymenttermsareintendedtoresultintotalmonthlypayment(currentserviceplus paymentonarrears)approximating4%ofhouseholdincome. •Ifservicehasbeenshutoff,paymenttermstorestoreservicearedifferent, requiring25%downintheeventtherehasnotbeenapreviouspaymentagreement or50%downifapreviousagreementhasbeenbreached.Afterrestoration,monthly bills(currentservicepluspaymentonarrears)areintendedtoapproximate4%of householdincome.

WaterRevenueAssistanceProgram(WRAP)PaymentAgreementTerms(grandfathered;closed tonewapplicants): •Availabletocustomerswithhouseholdincomeatorbelow250%ofFederalPoverty Level,andcustomerswithhigherincomewhocannotmeetthetermsofastandard paymentagreement(e.g.,duetohighmedicalexpenses). •Initialpaymentequalto10%ofthebalanceor15%ofcombinedmonthlyhousehold income,whicheverisless. •Subsequentequalmonthlypaymentsmaybeasmuchas5%ofthebalanceper month,orextendforperiodslongerthan36months(inpractice,PWDextends paymenttermsforaslongas60months). •Ifservicehasbeenshutoffafterabreachofapaymentagreement,PWDmay requiretheinitialpaymenttorestoreservicetobe25%ofthebalance.PWDhasthe abilitytorestoreserviceonmorefavorableterms.

WaterRevenueBureauConferenceCommittee(WRBCC)PaymentAgreementTerms (grandfathered;closedtonewapplicants): •Customerswithincomeatorbelow250%ofFPLmayapplyasofright. •Customerswithhigherthan250%ofFPLmustshowinabilitytomeetStandardand WRAPpaymentagreementterms(e.g.,duetohighmedicalexpenses). •WRBmustrefercustomerswithincomeatorbelow150%ofFPLforWRBCC paymentagreements. •WRBCCpaymentagreementsmayestablishafixeddollarmonthlypaymentamount forcurrentserviceandprovideforsuspensionofinterestandpenaltyaccrualonout standingarrears.CustomersreceivingWRBCCagreementsmayreceivean annualgrant(appliedinmonthlyinstallments)toreducecurrentservicechargesand reduceoutstandingarrears.Totheextentthegrant,plusthecustomer’sWRBCC paymentamount,islessthanthecurrentchargesthecustomerwouldotherwisebe billed,thedifferencemaybeaddedtooutstandingarrears.

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City of Philadelphia’s Water and Sewer Payment Agreements and LowIncome Assistance Programs to Prevent Water Foreclosure (Continued)

Eligibility Requirements(Continued): TAP:TieredAssistanceProgram(AKA“Income-BasedWaterRateAssistanceProgram) (effectiveJuly2017): •Customerswithincomeatorbelow150%ofFPLwillreceiveaffordablemonthlybills calculatedasapercentageofincomeasfollows: 0-50%FPL:monthlybillequals2%ofincome 50-100%FPL:monthlybillequals2.5%ofincome 100-150%FPL:monthlybillequals3%ofincome •CustomerswhoareenrolledinTAPshallberequiredtomakenoadditionalpayment inrespecttoanypre-TAParrearstomaintainservice. •Earnedforgivenessofarrearagesshallbeavailableundersuchtermsand conditionsasareadoptedbyregulation.Currently,aftertwenty-fourmonthsof payment,penaltychargesareforgiven.Arrearagesolderthan15yearsareeliminated yearly,suchthatallarrearsareeliminatedafter15years. •Customerswithhouseholdincomeabove150%FPLmaydemonstratespecial hardship(increaseindependents,seriousillness,circumstancesthatthreatenaccess tonecessitiesoflife)toenrollinTAP. •CustomersfallingbehindinTAPcanapplyforfurtherTAPpaymentagreement, generallyproviding12monthstocatchuponunpaidTAPbills. •EnforcementisstayedonaccountsenrolledinTAP •PWDpostponesterminationactivityandwillrestoreservicetocustomers requestingTAPapplications(subjecttoreasonablelimitationsonthenumberoftimes someonecanrequestanapplicationtohaveservicerestored)

Duringanyperiodpriortothedateoftheactualsheriff’ssale,thecustomer(orperson seekingtobecomeacustomer)mayseektopostponethesalebydemonstratingtoWater RevenueBureau’sSheriffSaleUnitand/orthePhiladelphiaLawDepartmentthatthecustomer islikelytosucceedinenteringintooneofthepaymentagreementsdescribedherein. Typically,thiswouldbeundertakenwiththeassistanceofcounsel,andlegalservicesagencies, inparticularCommunityLegalServicesEnergyUnit,haveexperienceinthiscapacity.

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Suburban Philadelphia Agreements for Delinquent Property Taxes

Purpose: Allowhomeownerswithdelinquentpropertytaxestoenterintoanaffordablepayment arrangementsunderthetermsofthePennsylvaniaRealEstateTaxSaleLaw.

Program: WrittenpaymentagreementwiththeCountyTaxClaimOffices.NotAlltaxingentities(school districts,municipalitiesetc.)collectthroughtheCountyTaxClaimOffices.Ifyourtaxing entitydoesnotcollectviatheTaxClaimofficeyouwillhavetocontactthecollectionagent hiredbyyourschoolboardormunicipality.

ProgramFeatures: ThePennsylvaniaRealEstateTaxSaleLaw,72Pa.C.S.§§5860.101,etseq.,appliestoall countiesexceptPhiladelphia.Section5860.603oftheTaxSaleLawprovidesthebasic standardsunderwhichcountiesofferpaymentagreementstohomeownerswithdelinquent taxes: •Anyownerorliencreditoroftheownermay,attheoptionofthebureau,priortothe actual sale: oCausethepropertytoberemovedfromthesalebypaymentinfulloftaxes whichhavebecomeabsoluteandofallchargesandinterestdueonthese taxestothetimeofpaymentor oEnterintoanagreement,inwriting,withthebureautostaythesaleofthe propertyuponthepaymentoftwenty-fivepercentum(25%)oftheamount dueonalltaxclaimsandtaxjudgmentsfiledorenteredagainstsuch property and the interest and costs on the taxes returned to date, as provided bythisactandagreeingthereintopaythebalanceofsaidclaimsand judgmentsandtheinterestandcoststhereoninnotmorethanthree(3) installmentsallwithinone(1)yearofthedateofsaidagreement,the agreementtospecifythedatesonorbeforewhicheachinstallmentshallbe paidandtheamountofeachinstallment. •Solongassaidagreementisbeingfullycompliedwithbythetaxpayer,the saleofthepropertycoveredbytheagreementshallbestayed.Butincaseof defaultinsuchagreementbytheownerorliencreditor,thebureau,after writtennoticeofsuchdefaultgivenbyUnitedStatesmail,post-ageprepaid, totheownerorliencreditorattheaddressstatedintheagreement,shall applyallpaymentsmadeagainsttheoldest delinquenttaxesandcosts,thenagainstthemorerecent. •Ifsufficientpaymenthasbeenmadetodischargeallthetaxesandclaimswhich wouldhavecausedthepropertytobeputupforsale,thepropertymaynotbesold. •Ifsufficientpaymenthasnotbeenreceivedtodischargethesetaxesandclaims,the bureaushallproceedwiththesaleofsuchpropertyinthemannerhereinprovided eitheratthenextscheduledupsetsaleorataspecialupsetsale,eitherofwhichisto beheldatleastninety(90)daysaftersuchdefault.Ifapartytoaninstallment agreementdefaultsontheagreement,thebureaushallnotenterintoanew installmentagreementwiththatpersonwithinthree(3)yearsofthedefault. •Somecountiesallowhomeownerstomakemonthlypaymentsratherthanquarterly tomakethepaymentsmoreaffordable.Monthlypaymentagreementshaveslightly differentprocedurestoapply(seecountyspecificinformation).

GeographicAreaServed: All Pennsylvania counties, except Philadelphia.

Costsorfees: Nocosttoapply.Unpaidtaxeswillaccrueataninterestrateof0.75%permonth(9%per year).Somecountieshaveservicefees.Seecountyspecificinformation.

AdministeringAgency: Generally,eachcountyhasaTaxClaimBureauthathandlesdelinquenttaxes.Seecounty specificinformation. Procedures: Contacttheadministeringagencytobegintheapplicationprocesstoenteranaffordable agreementplan.Seecountyspecificcontactinformationonnextpage.

ContactInformation: Seecountyspecificinformationonnextpage.

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County Specific Information for Delinquent Property Tax Agreements (by county)EachCounty’sTaxClaimBureaucollectsforthreethings:County&SchoolDistrict&Municipality(TownshiporBorough).LocalmunicipalitiesmayalsocollectforWater,Sewer,Trash,orotherservices.

Bucks County

Special Program FeaturesIftaxesarenotpaidbyDecember31stoftheyearthetaxesbecomedueandpayable,alocaltaxcollectorreturnsalldelinquentanduncollectablestotheTaxClaimBureauforfurthercollection.TheBureausendsouta“NoticeofClaim”whichnotifieseachpropertyownerwiththedelinquenttaxesthataclaimhasbeenenteredagainsttheproperty.Thesenoticesaregenerallymailedbycertifiedmailinthespringoftheyearafterthetaxwas due.

Ifhomeownersareunabletopaytheentireamountowed,theyhaveuntilJune30thofthesameyeartomakesmallerpaymentsuntilthelienissatisfied.Tomakethisarrangement,homeownersmustcalltheTaxClaimBureau.

Timing:Typically,theBureaumailsa“NoticeofClaim”(bycertifiedmail)inthespringoftheyearafterthetaxwasdue.IntheJulyfollowingaNoticeofClaim,noticeis sent that the property will be advertised, posted and sold. That Upset sale is held between the 2nd Monday in SeptemberandOctober1.AnAdjournedUpsetSaleandaJudicialSalemayeachbeheldlater,inthatsameyear.

Administering AgencyBucksCountyTaxClaimBureau

Contact Information55 East Court StreetThirdFloor,AdministrationBuildingDoylestown,PA18901Phone:215-348-6274Hours:MondaythroughFriday8:00a.m.To5:00p.m.

Additional Informationhttp://www.buckscounty.org/government/Finance/Tax-ClaimBureauhttp://pa-chestercounty.civicplus.com/1307/Tax-Claim-Bureau-Overview

Chester County

Special Program FeaturesIftaxesarenotpaidbyDecember31stoftheyearthetaxesbecomedueandpayable,alocaltaxcollectorreturnsalldelinquentanduncollectabletaxestotheTaxClaimBureauandsendsouta“NoticeofClaim,”whichnotifieseachpropertyownerwithdelinquenttaxesthataclaimhasbeenenteredagainsttheproperty.Theseno-ticesaregenerallymailedbycertifiedmailinthespringoftheyearafterthetaxwasdue.

IfhomeownersareunabletopaytheentireamountowedbyDecember31stofthecurrentyear,theyshouldcontacttheTaxClaimBureaufollowingreceiptoftheno-ticetodiscusspaymentoptionsthatmaybeavailable.

Timing:TheUpsetTaxSaleisheldinSeptember,theContinuedUpsetSaleisheldinDecember,andmorethanoneJudicialSalemaybeheldduringtheyear.

Administering AgencyChesterCountyTaxClaimBureau

Contact Information313 W. Market Street, Suite 3602 WestChester,PA19380-0991Phone:610-344-6360Fax:610-344-4722

Additional Informationwww.chesco.org/chesco/site/default

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Delaware County

Special Program FeaturesMonthlypaymentagreementsareavailabletothosewhoareunabletoaffordthestandardquarterlypayment.Thisfeatureisnotincomerestrictedandisopenforalltoapply.

Costs or FeesThereisnofeeforahardshipagreement.Additionalfeesareincurredfromtimetotimetocovercostsofdelin-quencynotificationandfordocumentationpriortotheultimatesaleoftheproperty.

ProcedureIfthehomeownerisapplyingforthemonthlypaymentagreement,theywillneedtogotothetaxclaimofficeandfilloutanapplication.Oncetheapplicationhasbeenfilledoutthehome-ownerwillmeetwiththeCountyTreasurerandTaxClaimOfficeDirector.

Timing Upsetsaleisheldeachfall.UnsoldpropertiesfromtheUpset Price Sale are auctioned again in a Judicial Sale eachspring,freeandclearofliens.

Administering AgencyDelawareCountyTaxClaimBureau

Contact InformationGovernmentCenter,GroundFloor201W.FrontStreetMedia, PA 19063Phone:610-891-4293Fax:610-891-4115

Additional Informationwww.co.delaware.pa.us/treasurer/taxclaim.htmlhttp://www.co.delaware.pa.us/treasurer/backyeartaxes.html

Montgomery County

Special Program FeaturesIftaxesarenotpaidbyDecember31stoftheyearthetaxesbecomedueandpayable,alocaltaxcollectorreturnsalldelinquentanduncollectablestotheTaxClaimBureauforfurthercollection.TheBureausendsouta“NoticeofClaim”whichnotifieseachpropertyownerwiththedelinquenttaxesthataclaimhasbeenenteredagainsttheproperty.Thesenoticesaregenerallymailedbycertifiedmailinthespringoftheyearafterthetaxwas due.

Administering AgencyMontgomeryCountyTreasurer’sOffice

Contact InformationMontgomeryCountyTaxClaimBureauOneMontgomeryPlaza, Suite 600P.O.Box311Norristown,PA19404-0268Phone:610-278-1216Fax:610-994-2881

Additional Informationhttp://www.montcopa.org/569/Tax-Claim-Bureau

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Program Age Restrictions

**IncomeRestrictions

Rental Tenants

Military Only

Contact Number

Deadline Formoreinformation,contact:

HomesteadExemption 215-686-9200 Sept. 13th www.phila.gov/OPA

Property Tax/Rent Rebate June 30th www.revenue.pa.gov or call1-800-236-2194

CurrentYearPropertyTaxInstallmentPlan

215-686-6442 Mar. 31st www.phila.gov/revenue

Owner-OccupiedRealEstatePaymentAgreement(“OOPA”)

215-686-6442 www.phila.gov/revenue

SeniorCitizenLow-IncomeProperty Tax Freeze

215-686-6442 *Sept. 12th

www.phila.gov/revenue

LongtimeOwnerOccupantsProgram(“LOOP”)

215-686-9200 *June 30th

www.phila.gov/OPA

RealEstateTaxDeferral 215-686-6442 *Feb. 18th www.phila.gov/revenue

RealEstateTaxCreditforActiveDutyReserveandNationalGuard

215-686-6442 www.phila.gov/revenue

Catastrophic Loss Adjustment

215-686-9282Approxi-mately6monthsfromloss

www.phila.gov/OPA

PADisabledVeteransRealEstateExemption

215-686-3256 Call215-686-3256torequestapplicationforms

Tax Assistance Programs RequirementsCircumstancesmaypreventresidentsfrombeingabletopaytheirrealestatetaxbills.Helpisavailablethrougha

varietyofassistanceprogramsforseniorcitizens,low-incomehouseholds,rentaltenants,owner-occupants,andmore.

Please review the chart below to determine if you qualify for assistance

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Notes: (1)Allprogramsrequirethepropertybeusedastheapplicant’sprimaryresidence,exceptfortheCatastrophicLossAdjustment.(2)Allprogramsrequireanownershipinterest,exceptfortheRentRebate.*DeadlineextendedbyPhila.Dept.ofRevenue.Seeprogramdescriptionsfordetails.**Incomerestrictionsvarybyprogram.Programsmayhavestrictincomelimitsortieredeligibilitythatphasesoutasincome increases.

Homestead Exemption:Exemptsthefirst$30,000ofahomeowner’spropertyvalue(itsassessedmarketvalue)fromtaxation.Thisisequivalentto$419.94reductionintaxesdue(basedon2016taxrate).

Property Tax/Rent Rebate:Homeownersandrentersmayreceivearebateoftheirpropertytaxorrentpaymentsoncetheyarepayedinfull,totalingfrom$250to$975.

Current Year Property Tax Installment Plan:RecordownersresidinginthepropertymaypaytheircurrentyearpropertytaxesinmonthlypaymentsthroughDecember31standhaveinterestandpenaltieswaived.

Owner-Occupied Payment Plan (“OOPA”):Homeownersmaypaydelinquentpropertytaxesinmonthlyinstallments,whicharebasedonhouseholdincome,andsomeorallofinterestandpenaltiesmaybeforgiven.Duringthedurationoftheagreement,inter-estandpenaltiescontinuetoaccruebuttheywillnotbeaddedtothedelinquencyiftheagreementiscompleted.Sometaxpayersmustcontinuetopayfuturetaxesontime,astheyarenotalwaysincludedintheagreement.

Senior Citizen Low-Income Property Tax Freeze: Seniorswhoowntheirresidencesmay“freeze”theircurrenttaxassessment,meaningitwillnotincreaseiftheresidencesassessedvalueincreases(taxeswilldecreaseiftheassessedvaluedecreases).LongtimeOwnerOccupantsProgram(“LOOP”):Anapplicantwhohasownedandoccupiedtheirresidencefor10yearsmayapplytocaptheassessedpropertyvalueatthreetimes(300%)theassessedvaluefortheprevioustaxyear.ThiscannotbeappliedatthesametimeasaHomesteadExemption.Real Estate Tax Deferral:Allowstaxpayerswhosepropertytaxesincreaseatleast15%inagivenyearandwhodemonstratefinancialhardshiptodeferpaymentsoftaxes.Thetaxliabilityisnotforgivenandthetaxpayerremainsobligatedtopaythetaxes,whicharecollectedwhenthepropertyissoldortransferredtoanewowner.

Real Estate Tax Credit for Active Duty Reserve and National Guard:ActiveDutyReserveandNationalGuardMemberswhoserveonactivedutyoutsideofPennsylvaniamaybegrantedacredittowardtheCity’sportionofrealestatetaxes(doesnotaffectSchoolDistricttaxes).Thecreditisawardedforeachdayspentoutsideofthestateonactiveduty,andisgiventheyearaftertheserviceisperformed.

Catastrophic Loss Adjustment:Propertyowners(noresidencyrequired)mayrequestanadjustmenttotheassessedvalueoftheirpropertyifitsuffersalossofatleast50%ofitsvalue.Theadjustmentmayresultinareductionintaxesowedforthecurrentyear,whichwillbeappliedasacredittothefollowingtaxyear’sbill.

PA Disabled Veterans Real Estate Exemption:Programexemptsveteran’shomefrompaymentofallpropertytaxesonprimaryresidence,forhonorablydischargedveterans(andtheirwidow(ers)ifnotremarried)if,asaresultofmilitaryservice,aveteranis100%disabled,blind,paraplegic,orhaslosttwoormorelimbsANDhasafinancialneed.Financialneedforthisprogramispre-sumediftheveteranearnslessthan$88,607annually(in2017)andmustbeprovenifincomeexceedsthisamount.

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Section IV:If losing my home is inevitable, what are my options?

Ifitappearsthereisnoresolutionbetweenthehomeownerandthelendertomodifytheloan,thereareotheroptionsbesidesforeclosuresuchasashortsaleandadeed-in-lieu(DIL)offoreclosure.Althoughthehomeownerwillnotownthehomeattheendoftheprocess,thesealternativesmaybelesscostlyandtraumatic.

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Short Sales and Deeds-in-Lieu of ForeclosureShort SalesIfaborrowerishavingtroublemakingitsmortgagepayment,hasadocumentedfinancialhardship,andowesmoreonthemortgagethanthehomeisworth,ashortsalemaybeanacceptableforeclosurepreventionoption.Thisoptionmaybebestforaborrowerwhohasbeendeniedaloanmodification,isreadytoleavetheproperty,isinapaymentdefaultsituationandhasalreadylistedthehome,orwantstoresolveforeclosureassoonaspossible.Themortgageservicerallowstheborrowertosellthepropertyatfairmarketvalue,whichmaybelessthanthefullamountdueonthemortgage,andforeclosureisavoided.Insomecases,theshortsalemayalsoincludeafulldeficiencywaiver.

Thisisacomplextransactioninvolvingcarefulcoordinationandcooperationamonganumberofpartiesincludingtheborrower(seller),purchasers(buyer),servicers,juniorlienholders,appraisers,realestateagent/brokers,titleagencies,HOA(HomeOwnerAssociations),andoftenmortgageinsurancecompanies.Theservicerusesspecificforms(availableonservicers’websites)andguidelinestoapproveshortsaleterms.Theprocessisverysimilartoaregularhomesale,excepttherealestateagentwillsendanyoffersonthehometotheservicerforapprovalorcounteroffer.Theborrowermustagreetolistandactivelymarketthehome.Oncethereisanagreeduponprice,thestandardsaleandclosingprocessoccurs.Ashortsalecanbenefitthelenderandtheborrowerifitisdoneproperly.Itmayminimizelossanddebtexposure.Alsodependingonthesituationoftheborrowerandbaseduponinvestorguidelines,theborrowermaybeeligibleforfinancialre-locationassistance.

Uponcompletionoftheshortsale,itwillbereportedtotheCreditBureauas“PaidinFull-Lessthantheamountowed”sothereisanegativeimpacttotheborrower’scredit.However,thismayallowtheopportunitytorestorecreditscoreandpurchaseanewhomeinamorereasonabletimeframethanaforeclosuredoes.Theborrowermightberesponsibleforcertaintaxesafterashortsaleoccurs.Iftheborroweractivelymarketstheproperty but is unable to sell it within the agreed upon timeperiod,aservicermayconsideradeed-in-lieu.

Deeds-in-LieuADeed-in-LieuofForeclosure(DIL)isaprocesswherethemortgagecompanyallowstheborrowertogivethetitleback,ifthetitleisclearofotherliensorpaymentsowed.Themortgagecompanywillworkwiththeborrowerandthirdpartiesinanattempttoobtaincleartitleandtofinalizethetitletransfer.Thedifferencebetweensellingapropertyforlessthanowed(shortsale)andtransferringownershiptothemortgagecompanyistheborrowerisnotresponsibleforlistingandsellingthehome.

ADILcanbenefitthelenderandtheborrowerifitisdoneproperly.Itmayminimizelossanddebtexposure.UponthecompletionoftheDIL,itwillbereportedtotheCreditBureauas“PaidinFull-Lessthantheamountowed”sothereisanegativeimpacttotheborrower’scredit.However,thismayallowtheopportunitytorestorecreditscoreandpurchaseanewhomeinamorereasonabletimeframethanaforeclosuredoes.TheborrowermightberesponsibleforcertaintaxesafteraDIL.TheborrowermustleavethepropertyatthetimeoftheDIL.

InPennsylvania,mortgagelendersinsomecasesmayseeka“deficiencyjudgment”ifthesheriffsalepriceforthepropertyislessthanwhatisowedonthemortgage.Thelendermuststartaseparateproceedingtocollectthedeficiencyanditisnotautomatic.Ifthelenderobtainsadeficiencyjudgment,theborrowerbecomesresponsibleforpayingthisdifferenceinadditiontolegalfeesandlatecharges.ADeedinLieuofForeclosureusuallyresultsinanagreementthatthelenderwillnotseekadeficiencyjudgmentagainsttheborrower.

Generally,DILareusedwhenthereisonlyonelienontheproperty.Therearefederalprogramscreatedtoincentivizelenderstofindanalternativetoforeclosure.Forexample,undertheMakingHomeAffordableForeclosureAlternativeProgramtheshortsaleandDILprocessandpaperworkweresimplifiedandstreamlined.Additionally,lendersarebeingprovidedwithfinancialincentivestoproceedwithashortsaleoraDILinsteadofaforeclosure.

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Section V:Resources: Housing Counseling Agency Directory and Sample Forms

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Housing Counseling Agency Directory Approved by(asof9/1/2017)

Name Address City Zip PhoneAffordableHousingCentersofPennsylvania 846NorthBroadStreet Philadelphia 19130 215-765-1221 • * ‡

AmericanCreditAlliance 2S.DelmorrAvenue Morrisville 19067 215-295-7195 ‡

AsociaciónPuertorriqueñosenMarcha-APM 600WestDiamondStreet Philadelphia 19122 215-235-6070• * ‡

BucksCountyHousingGroup 1069JacksonvilleRoad Ivyland 18974 215-394-8259• ‡

CLARIFI 226MillSt.1stFloor Bristol 19007 215-563-5665• * ‡ 595RancocasRoad Westampton 08060 215-563-5665• * ‡ 1MallDriveSuite615 CherryHill 08062 215-563-5665• * ‡ 101GreenwoodAve,Suite208 Jenkintown 19046 215-563-5665• * ‡ 280N.ProvidenceRd.Suite7 Media 19063 215-563-5665• * ‡ 4400N.ReeseStreet Norristown 19140 215-563-5665• * ‡ 1608WalnutStreet Philadelphia 19103 215-563-5665• * ‡ 7340JacksonStreet Philadelphia 19136 215-563-5665• * ‡ 1410WestErieAve Philadelphia 19140 215-563-5665• * ‡ 790E.MarketStreet,Suite170 Philadelphia 19107 215-563-5665• * ‡

CenterinthePark 5818GermantownAvenue Philadelphia 19144 215-848-7722• *

ChesterCommunityImprovementProject 412AvenueoftheStates Chester 19103 610-876-8663‡

Concilio-CouncilofSpanishSpeakingOrganization 705-709N.FranklinSt. Philadelphia 19123 215-627-3100• ‡

CongresodeLatinosUnidos 216WestSomersetStreet Philadelphia 19133 215-763-8870• * ‡

CreditCounselingCenter 8150Route13 Levittown 19057 215-348-8003• ‡ 60 North Main Street, LowerLevel Doylestown 18601 215-348-8003• ‡ 832SecondStreetPike Richboro 18954 215-348-8003• ‡

DiversifiedCommunityServices(DixonHouse) 1920South20thStreet Philadelphia 19145 215-336-3511• * ‡

GenesisHousingCorporation 208DeKalbStreetSuite#212 Norristown 19401 610-275-4357• ‡

GreaterPhiladelphiaAsianSocialServicesCenter 4943N.5thStreet Philadelphia 19120 215-456-1662*

HispanicAssoc.ofContractors&Enterprises(HACE) 167W.AlleghenyAve,Suite200 Philadelphia 19140 215-426-8025• * ‡ 4915FrankfordAve. Philadelphia 19124 215-437-7867• * ‡

HousingPartnershipofChesterCounty 41WestLancasterAve Downingtown 19335 610-518-1522• ‡

IntercommunityAction 403RectorStreet Philadelphia 19128 215-487-1750• * ‡

InterculturalFamilyServices,Inc. 4225ChestnutStreet Philadelphia 19104 215-386-1298• * ‡

• PHFA/CHCI–PHFA’sComprehensiveHomeownershipCounselingInitiative(CHCI)trainsandcertifiesorganizationstoprovidehomebuyerworkshops,pre-settlementcounseling,andpre-purchasecounselingtohelpprospectivehomeownersthroughoutPennsylvania* PHCD–PhiladelphiaDivisionofHousingandCommunityDevelopment:mustbe80%orbelowthemedianincome.‡ HUD–UnitedStatesDepartmentofHousingandUrbanDevelopment:candoconventionalorFHAmortgages.

PHFA

/CH

CI

HUD

DHCD

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LibertyResources,Inc. 714MarketStreet,Suite100 Philadelphia 19106 215-634-2000• *

MediaFellowshipHouse 302SouthJacksonStreet Media 19063 610-565-0434• ‡

Mt.AiryUSA 6703GermantownAve,Suite20 Philadelphia 19119 215-844-6021• * ‡

NewKensingtonCDC 2515FrankfordAvenue Philadelphia 19125 215-427-0350• * ‡

NorthwestCounselingService 5001NorthBroadStreet Philadelphia 19141 215-324-7500• * ‡

NorrisSquareCommunityAlliance 174W.DiamondStreet Philadelphia 19122 215-426-8734• *

NuevaEsperanza 4261North5thStreet Philadelphia 19140 215-324-0746• * ‡

Pathstone 1625N.2ndStreet Harrisburg 17102 717-234-6616•

PhiladelphiaCouncilforCommunityAdvancement 1617JFKBoulevard,Suite1550 Philadelphia 19103 215-567-7803• * ‡

PhiladelphiaSeniorCenter 509SouthBroadStreet Philadelphia 19147 215-546-5879*

SouthPhiladelphiaH.O.M.E.S. 1444PointBreezeAvenue Philadelphia 19146 215-334-4430•

SouthwestCDC 6328PaschallAvenue Philadelphia 19142 215-729-0800• *

TaborCommunityServices,Inc. 308EKingStreet Lancaster 17602 717-397-5182• ‡

UnemploymentInformationCenter 112NBroadSt,11thfloor Philadelphia 19102 215-557-0822• * ‡

UnitedCommunitiesSoutheastPhiladelphia 2029South8thStreet Philadelphia 19148 215-468-1645• * ‡

UniversalCommunityHomes/Companies 800South15thStreet Philadelphia 19146 215-732-6518•

UrbanLeagueofPhiladelphia 121SBroadSt.,9thfloor Philadelphia 19107 215-985-3220• * ‡

WestOakLaneCDC 2502W.CheltenhamAvenue Philadelphia 19150 215-549-9462• * ‡

Housing Counseling Agency DirectoryContinuedName Address City Zip Phone

Approved by (asof9/1/2017)

• PHFA/CHCI–PHFA’sComprehensiveHomeownershipCounselingInitiative(CHCI)trainsandcertifiesorganizationstoprovidehomebuyerworkshops,pre-settlementcounseling,andpre-purchasecounselingtohelpprospectivehomeownersthroughoutPennsylvania* DHCD–PhiladelphiaDivisionofHousingandCommunityDevelopment:mustbe80%orbelowthemedianincome.‡ HUD–UnitedStatesDepartmentofHousingandUrbanDevelopment:candoconventionalorFHAmortgages.

Always check the DHCD website for the most recent information

PHFA

/CH

CI

DHCD

HUD

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Samples of Notices and FormsThissectionshowsmockupsorsamplesofsixnoticesthatahomeownermayreceivebymailduringtheforeclosureprocess.Whileeachnoticemaycontainmanyadditionalpages,thefollowingshowsanexampleofthefirstpageofeachnotice.

Act 91 Notice

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Act 6 Notice(Theregulationsallowflexibilityonhowthenoticeisexpressed.Followingisanexampleofhowthismightbedonebythelender.)

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Complaint

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Important Notice

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Judgment

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Sheriff’s Sale Scheduled

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