Legal Question in Credit and Debt Law in Pennsylvania

Re: Bank Foreclosure

When a Bank forecloses on your home, there has to be some deficiency in value in order for you to be responsible. Assuming that there is no equity in your home (ie. the property will be sold at a loss by the Bank after foreclosure) the Bank must within six month after the Sheriff sale file a Petition with the Court seeking a deficiency judgement. A failure to file within that period will prevent the Bank from asserting any deficiency againstyou. The time limitation must be watched very carefully and you should consult an attorney on this issue. As long as there is sufficient equity to pay the balance of the loan the Bank will not proceed against you. However, if there is sufficient equity you should sell the property rather than allowing a sale to take place. The Bank may even be willing to take a loss if you have it sold. Nothing in this note should be considered as establishing an attorney client relationship and the information contained herein is base on limited information. The statement are merely presented as informative discussion.