Facing Foreclosure in Philadelphia: What to Do Before a Sheriff Sale

Start with the deadline, not the sales decision

If you received a mortgage default letter, Act 91 Notice, foreclosure complaint, or sheriff-sale notice, read the entire document and write down every date. Different papers represent different stages, and an online article cannot calculate your deadline.

Philadelphia's Foreclosure Prevention Program connects owner-occupants with housing counseling and legal assistance through the Save Your Home Philly Hotline at 215-334-4663. The City encourages homeowners to call for help with both mortgage and tax foreclosure. Contact your mortgage servicer as well, but keep copies of every letter, payment record, and communication.

If you received an Act 91 Notice

Pennsylvania's Homeowners' Emergency Mortgage Assistance Program, commonly called HEMAP, is a state-funded loan program, not a grant. It may help certain owner-occupants who became delinquent because of circumstances beyond their control and have a reasonable prospect of resuming their mortgage payments.

PHFA says an eligible homeowner generally must meet with an approved counseling agency within 33 days from the date of the Act 91 Notice to begin the application process. The agency listing should be included with the notice. Because eligibility and timing depend on the loan and facts, use the notice and PHFA's current instructions rather than relying only on a summary.

Important first steps include:

1. Save the envelope and every page of the notice.
2. Call an approved housing counselor promptly.
3. Contact the mortgage servicer using a verified telephone number.
4. Request a current written reinstatement or payoff figure.
5. Gather income records, mortgage statements, tax bills, insurance information, and a short explanation of the hardship.
6. Consult a qualified foreclosure attorney about court filings, defenses, or deadlines.

Options that may help you keep the home

Depending on the circumstances, a housing counselor or attorney may help you evaluate reinstatement, a repayment plan, loan modification, HEMAP, or other loss-mitigation options. Availability is not guaranteed, and submitting incomplete paperwork late can reduce the time available to solve the problem.

If the hardship is temporary and the payment can become sustainable, keeping the home may be the best outcome. Selling should not be presented as the only solution before the homeowner has had a fair chance to understand official assistance.

When selling becomes part of the plan

A voluntary sale may be worth considering when the payment is no longer affordable, the property has usable equity, or the owner wants to avoid the uncertainty and cost of a completed foreclosure. The critical question is whether the sale can close in time and produce enough money to satisfy the mortgage and other settlement charges.

Ask a title company or attorney to help identify:

• The current mortgage payoff, including arrears and fees.
• Real estate tax, water, utility, judgment, or municipal liens.
• Ownership or probate issues that could delay settlement.
• The scheduled legal events and the time realistically available.
• Estimated commissions, transfer taxes, title charges, and other selling costs.

Do not estimate equity by subtracting an old mortgage balance from an online home value. Use a current payoff and a realistic net sheet.

Direct cash sale or as-is listing?

A direct cash sale may reduce financing and inspection uncertainty and can sometimes close faster. That certainty normally comes with a lower price because the buyer is absorbing repair, resale, and timing risk.

An as-is market listing can expose the property to multiple buyers, including cash investors. Competition may improve price and terms, but marketing, access, buyer due diligence, title work, and closing still require time.

The right comparison is not simply “fast versus slow.” Ask what each path is likely to put in your hands after the mortgage, liens, and selling costs are paid—and whether the proposed closing date is credible.

Protect yourself from pressure

Foreclosure notices are public or discoverable in ways that can attract aggressive solicitations. Be wary of anyone who guarantees they can stop the foreclosure, asks you to sign immediately, discourages you from speaking with a counselor or attorney, or refuses to put the full offer and costs in writing.

Sean can prepare a no-pressure comparison between a direct offer and an as-is listing. That comparison should supplement—not replace—advice from the hotline, housing counselor, mortgage servicer, attorney, and title professional.

This is general information, not legal advice. Rules, deadlines and the condition of each property can differ. Read your notice carefully and contact the issuing agency, a qualified attorney, licensed contractor or other appropriate professional when needed.