A Pennsylvania Act 6 Notice, 41 P.S. §101, is a notice that a lender must send to a residential mortgage borrower prior to filing a foreclosure action in Court and it must be sent by certified or registered mail. The Act 6 notice does not apply to all mortgagors. The Notice only applies to residential mortgagors whose mortgage is $221,540 or less. If your mortgage exceeds this amount, you are not legally required to receive a notice before a lender begins a foreclosure action. However, once a foreclosure action is filed, you’ll be served with the Complaint by the sheriff.
The Act 6 Notice gives the borrower a 30-day notice prior to the lender taking any action to foreclose on the home. The primary purpose of the Notice is to give the borrower 30 days to cure the default.
If you received an Act 6 Notice, you may be able to prevent foreclosure. The first option is to reinstate the loan by paying the full amount in arrears. If that is not a viable option, I would recommend applying for a HAMP loan modification. A lender cannot begin the foreclosure process if the lender participates in the HAMP program and a loan modification has been submitted. I would be happy to determine if you are eligible for a modification — call me at (610) 417-6345.
If you are ineligible for HAMP or were denied a modification, there are still options available to save your home such as foreclosure defense litigation or filing a Chapter 13 bankruptcy petition. A Chapter 13 petition would allow you to pay the arrears on your mortgage over a period of 5 years while you continue making your monthly mortgage payment.
If you would like a free consultation to discuss your options, please call me at (610) 417-6345.
Zachary Zawarski, Esq.