How to Stop Foreclosure in Philadelphia

If you’re behind on your mortgage in Philadelphia and the letters have started, the most useful thing to know first is this: you almost certainly have more time than you think, and more free help available than you’ve been told.

Pennsylvania makes lenders work for it

Pennsylvania is a judicial foreclosure state. Your lender cannot simply schedule a sale — it has to file a lawsuit against you in the Court of Common Pleas, serve you, and win a judgment before your house can go to sheriff sale. There is no quick “power of sale” shortcut like the one that exists in many other states.

That matters because every step in a court case takes time, and several of those steps come with rights attached. People lose houses in Philadelphia far more often by not opening the mail than by running out of legal options.

Your Act 91 notice is a 33-day clock — and an opening

Before a Pennsylvania lender can foreclose on an owner-occupied home, it generally has to send you an Act 91 notice. It’s easy to mistake for another collection letter. It isn’t. That notice has to tell you why you’re in default, how to cure it, and that you may qualify for state mortgage assistance.

The important part: it starts a 33-day window. If you meet face-to-face with an approved housing counseling agency within those 33 days and apply, your lender generally cannot move forward while the application is pending. That single meeting — free — is often what buys a homeowner the months they need.

The assistance it points to is HEMAP, Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program, run by the Pennsylvania Housing Finance Agency. It’s a loan, not a grant, and not everyone qualifies — but it can cover arrears and in some cases help with monthly payments. PHFA: 1-800-342-2397.

Philadelphia’s Diversion Program — the part most people don’t know about

This is the piece that makes Philadelphia different from the rest of Pennsylvania. If a foreclosure complaint is filed against your owner-occupied Philadelphia home, you are automatically enrolled in the Residential Mortgage Foreclosure Diversion Program.

Before a judgment can be entered, the court requires a conciliation conference — a supervised sit-down where you and the mortgage company have to actually attempt an agreement, usually overseen by a court-appointed attorney. You don’t walk in alone: roughly 25 nonprofit agencies across the city provide housing counselors under contract with the City’s Division of Housing and Community Development, and a counselor prepares your case and attends with you.

Three things can come out of that conference — the case moves forward, it gets stayed to give you more time, or you reach a settlement and the foreclosure ends. The program has helped save nearly 18,000 Philadelphia homes since 2008. Showing up matters enormously. Not showing up is how the program stops helping you.

Free help that actually exists in Philadelphia

• Save Your Home Philly Hotline — (215) 334-HOME (4663), weekdays 9am to 5pm. The city’s front door for mortgage foreclosure, tax foreclosure, and tangled title. Start here.
• PHFA / HEMAP — 1-800-342-2397. For the Act 91 clock and state mortgage assistance.
• Community Legal Services — (215) 981-3700. Free legal representation for lower-income Philadelphia homeowners.

None of these cost anything, and it’s worth knowing what’s on the table before you decide. Most homeowners we talk to are weighing two questions at once — can I keep this house, and what happens if I can’t. It’s easier to answer the second one calmly once you’ve answered the first.

What your options actually look like

• Reinstate. Pay the arrears plus costs and the case goes away. Best outcome if the hardship was temporary and it’s behind you.
• Loan modification. The most common result of a successful conciliation conference — the arrears get folded in and the payment is reset.
• HEMAP. State assistance to cover the gap, if you qualify.
• Forbearance or a repayment plan. Useful when income is returning but hasn’t yet.
• Sell before judgment. If the payment was never going to be affordable again, selling while you still control the timing protects your equity and your credit far better than a sheriff sale does.
• Bankruptcy. A Chapter 13 filing can stop a sale and restructure arrears. Talk to an attorney — this is a real tool, not a last resort, but it has consequences.

When selling is the honest answer

Sometimes the math doesn’t work. The payment is beyond reach, the arrears keep growing, and a modification only postpones the same problem. If that’s your situation, the worst outcome is riding it all the way to the sheriff’s steps — you lose the house and whatever equity was in it.

Selling before judgment lets you pay off the loan, walk away with what’s left, and avoid a foreclosure on your record. We buy Philadelphia houses as-is — no repairs, no cleanout, no fees or commissions — and we can work to your closing date, including coordinating with your lender’s payoff. Knowing the number early is useful even if you end up keeping the house: here’s how cash offers are actually calculated, and here’s how to vet any buyer who contacts you — foreclosure filings are public record, so expect the calls to start.

Earlier in the process? Start with what to do when you’re behind on your mortgage. Already have a sale date? Go straight to how to stop a Philadelphia sheriff sale — timing changes what’s possible.

This page is general information about the Pennsylvania and Philadelphia foreclosure process — it is not legal advice. Your rights depend on your specific loan and case. Talk to a housing counselor or an attorney.

Need to know what your house would bring, with no pressure and no obligation? Get your fair cash offer today, or call or text us at (215) 515-7799.

Frequently Asked Questions