Legal Question in Bankruptcy in Pennsylvania

Payments accepted post-judgment in foreclosure action

Matter concerns 9 yr improper foreclosure action against homeowner wherein Common Pleas court in 94 issued judgment for non-payment in 92-93. Court ignored violations of CFRs, HUD manual and directives. Jan '97, atty of record failed to appear for argument before Superior Court due to heart transplant, Court proceeded without any representation for homeowner. Homeowner unaware until served with judgment and notice of sherriff's sale of home. Unable to obtain any other representation, to stop sale, files Chap 13 in 97 with 1 debt, foreclosure judgment. Chap 13 Plan, homeowner to pay Trustee $600/mo while continuing Pro Se against mortgage company. Since '97, Trustee forwarded $27,000 to mortgage servicing company who applied $ against arrearage. In Aug '01, issued payment book showing next payment due date of Jul '95. As of today, sherriff's sale stayed since Aug '97, state foreclosure action open since '93, servicing company posted $27,000 retro '92-'95, foreclosure atty attempting to open stay for sale.

Q. Is foreclosure action still valid since that deliquency (92-93) has been cured? Q. Any case law anywhere about accepting of post-judgment payments? Q. Has homeowner alternatives concerning this foreclosure action?


Asked on 9/05/01, 8:55 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Payments accepted post-judgment in foreclosure action

You can cure a mortgage delinquency only by paying all accrued principal, interest, late charges, foreclosure costs, including the costs of suit and execution, and attorney's fees. The mortgage company is entitled to apply the payments received to the costs first, then interest, then principal. It may be that the payments you made were insufficient to cure the default.

You have the right to discover exactly what was charged, what was received and how it was applied. However, time is probably of the essence. You should speak to an attorney immediately to determine what, if anything, you can do to combat a motion for relief from stay.

I trust this has been helpful, but feel free to call or e-mail with further questions on a free initial basis.

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Answered on 10/25/01, 11:09 am


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