Navigating the Philadelphia Foreclosure Process: A Guide for PA Homeowners
Understand the First Judicial District's diversion programs and Pennsylvania's unique legal protections to make informed decisions about your property.
If you own a house in Philadelphia, PA and you are dealing with foreclosure, this page covers what actually happens next — the local timeline, what it costs, and the options that stay open to you. Everything below is specific to Philadelphia and how sales are handled in PA, not generic national advice.
Quick Answer
- Pennsylvania is a judicial foreclosure state requiring a court filing before a property can be sold at a Sheriff Sale.
- Philadelphia's Mortgage Foreclosure Diversion Program provides a mandatory court-supervised meeting for owner-occupied homes.
- The 'Save Your Home Philly' hotline (215-334-HOME) offers free housing counseling and legal assistance for city residents.
Mandatory Conciliation
Philadelphia law requires lenders to meet with homeowners in a court-supervised setting for owner-occupied properties.
State Financial Aid
The PA HEMAP program may provide emergency loans to eligible homeowners to bring their mortgage current.
Free Local Support
Access to the Save Your Home Philly Hotline ensures every resident can receive HUD-approved housing counseling at no cost.
The Detailed Answer
The Judicial Foreclosure Process in Philadelphia Courts
In Philadelphia, foreclosure is a strictly judicial process, meaning your lender must file a formal lawsuit in the Philadelphia Court of Common Pleas. This process typically begins after a homeowner has fallen significantly behind on payments, generally at the 120-day delinquency mark under federal guidelines. Before the lawsuit can be officially initiated in the First Judicial District of Pennsylvania, state law requires lenders to send specific notices, such as an Act 91 Notice. Once a complaint is filed, the court process begins, which includes a period where you must respond to the legal summons. If you do not respond, the court may enter a default judgment, which eventually leads to a Sheriff Sale. Homeowners in neighborhoods from Kensington to Overbrook should be aware that the local court system has specific rules designed to ensure lenders follow all procedural steps. Navigating these court proceedings requires careful attention to deadlines, and consulting a licensed professional is highly recommended to understand the implications of each filing.
Understanding Pennsylvania Act 6 and Act 91 Notices
Pennsylvania law provides unique protections through Act 6 and Act 91, which are mandatory notices that must be sent before a foreclosure can proceed. Act 6 of 1974 requires a 30-day 'Notice of Intent to Foreclose' for residential mortgages under a certain dollar limit, allowing the borrower an opportunity to cure the default. Act 91 involves the Homeowners' Emergency Mortgage Assistance Program (HEMAP), administered by the Pennsylvania Housing Finance Agency (PHFA). This notice informs you of your right to meet with a HUD-approved housing counseling agency, such as Clarifi or the Urban League of Philadelphia, within 33 days. If you successfully apply for HEMAP, the foreclosure process is typically stayed for up to 60 days while your eligibility for an emergency loan is reviewed. These state-specific statutes are designed to provide a 'breathing period' for PA homeowners to explore financial remedies before a lender can move to seize the property through the court system.
The Philadelphia Mortgage Foreclosure Diversion Program
Since 2008, the Philadelphia Mortgage Foreclosure Diversion Program has served as a critical resource for preventing homelessness within the city limits. This program mandates a conciliation conference for all owner-occupied residential foreclosure cases filed in Philadelphia. Once a foreclosure complaint is filed, the court automatically schedules a conference date, provided the homeowner participates in counseling. By calling the Save Your Home Philly Hotline, residents can be paired with a housing counselor who will help prepare a financial proposal for the lender. These conferences are held at the Philadelphia Civil Family Court or virtually, where a court-appointed mediator or judge pro tempore oversees negotiations. The goal is to reach a 'workout agreement' that may involve a loan modification or a repayment plan. This local program is one of the most robust in the country and provides a supervised environment where homeowners can speak directly with lender representatives to seek alternatives to a Sheriff Sale.
Philadelphia Sheriff Sales and Post-Sale Reality
If a resolution is not reached through the diversion program or other legal means, the property may be scheduled for a Philadelphia Sheriff Sale. These auctions are managed by the Office of the Sheriff of Philadelphia and are currently conducted online via Bid4Assets. The Sheriff's Office publishes a list of properties slated for sale, and the process is governed by specific local rules regarding bidding and deposit requirements. It is important to note that once a property is sold at a mortgage foreclosure Sheriff Sale in Pennsylvania, there is typically no right of redemption, meaning you cannot buy the property back after the gavel falls. This differs from tax foreclosures, which may have different redemption rules. Homeowners facing this stage might consider a private sale or a short sale to potentially satisfy the debt before the auction occurs. Because the timeline from judgment to sale can vary, residents in high-growth areas like Fishtown or Brewerytown should monitor court dockets closely.
Key Data Points
Visual Data
Estimated Philadelphia Foreclosure Timeline (Months)
Side-by-Side Comparison
| Feature | Cash Sale | Traditional Listing | Foreclosure |
|---|---|---|---|
| Court Involvement | No | No | Yes (Mandatory) |
| Timeline | 1-3 Weeks | 3-6 Months | 6-18 Months |
| Sheriff Sale Risk | None | Low | High |
| Closing Costs | $0 | 8-10% | High Legal Fees |
| Credit Impact | Minimal | Minimal | Severe |
| Diversion Program Eligible | N/A | N/A | Yes |
Cost Breakdown
Estimated Potential Costs of Foreclosure in PA
Source: PA PHFA / Philadelphia Sheriff's Office
The Process
Receipt of Act 6/91 Notice
You receive a formal notice in the mail explaining your delinquency and your right to seek counseling or emergency assistance within 30-33 days. This is the first critical window to contact a HUD-approved agency.
Foreclosure Complaint Filing
If the default isn't cured, the lender files a lawsuit in the Philadelphia Court of Common Pleas. You will be served with a summons and have 20 days to file a formal response with the court.
Enrollment in Diversion Program
Philadelphia residents with owner-occupied homes are typically scheduled for a conciliation conference. You must work with a housing counselor to prepare a financial package for the court mediator.
Conciliation Conferences
You attend one or more court-supervised meetings with your lender's attorney to discuss loan modifications or other settlements. The court may stay the foreclosure as long as you are making a good-faith effort.
Sheriff Sale Auction
If no agreement is reached and a judgment is granted, the property is scheduled for a public auction. In Philadelphia, these are held monthly and represent the final transfer of property ownership.
Local Context — Philadelphia
Philadelphia homeowners benefit from the First Judicial District’s dedicated foreclosure court, which operates out of City Hall and the Civil Family Court building. The city’s unique 'Save Your Home Philly' hotline acts as a central hub for navigating local housing crises. Unlike many other counties in PA, Philadelphia has a high volume of rowhomes and specific neighborhood-based resources that focus on preserving the city's historic housing stock during financial hardship.
Frequently Asked Questions
Sources & Citations
Philadelphia Court of Common Pleas - Foreclosure Program
https://www.courts.phila.gov/common-pleas/trial/civil/foreclosure-program.dot
PA Housing Finance Agency (PHFA) - HEMAP Guidelines
https://www.phfa.org/hsgcounseling/hemap.aspx
Community Legal Services of Philadelphia
https://clsphila.org/housing/foreclosure/
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Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal, financial, or tax advice. Laws, timelines, and market conditions vary by state and change over time. Always consult a licensed attorney, financial advisor, or tax professional about your specific situation before making any decisions. Any cash offer is subject to a property evaluation, and closing timelines depend on title, occupancy, and other factors. Results described on this site are not a guarantee of any particular outcome. Black Girls Buy Houses LLC is a real estate investment company that purchases properties directly; we are not licensed real estate agents or brokers and do not provide brokerage services. We are committed to the letter and spirit of the Fair Housing Act and conduct business in accordance with all federal, state, and local fair housing laws.
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