Foreclosure is the process of repossession and sale of a home from the borrower by the lender, i.e. a bank or mortgage company. When a lender files a foreclosure complaint against your home, they do so in hopes of gaining money from the sale of your house.
In Pennsylvania, the Court of Common Pleas has the ability to take possession of your home and sell it on behalf of the mortgage company. This action is called a sheriff sale.
Once the sale of the property has been made, in Pennsylvania, there is no right of redemption of the property by debt payment in full. Furthermore, if a deficiency occurs on the property, meaning after the sheriff sale of the house that a balance still remains on the loan, the lender can file for a deficiency judgement against the debtor, requiring them to pay the remaining loan balance.
When does foreclosure happen?
For foreclosure to occur, the borrower must miss a payment on his or her mortgage, causing the loan to become delinquent. Once a loan is delinquent for so long, it will enter a state of "default".
However, before entering into default, during delinquency, the borrower must receive a notice of intent to foreclose, from the mortgage company, within 60 days of loan default. If the letter of intent to foreclose is not sent by the lender within the required time frame the foreclosure proceedings by the mortgage company can be found faulty and thus rejected.