Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 7 - RESIDENTIAL REAL ESTATE TRANSACTIONS › Section 7.4 - Notice of intention to foreclose mortgage

Current through Register Vol. 54, No. 28, July 13, 2024
Before a residential mortgage lender, as defined by the act,
				  may accelerate the maturity of a residential mortgage obligation, as defined by
				  the act; commence a legal action including mortgage foreclosure to recover
				  under the obligation; or take possession of a security of the residential
				  debtor, as defined by the act, for the residential mortgage obligation-the
				  person shall give a residential mortgage debtor notice of the intention which
				  may be in the following form:
NOTICE OF INTENTION TO FORECLOSE
				  MORTGAGE
The MORTGAGE held by ____________ (hereinafter we, us or
				  ours) on your property located at _________________________ , IS IN SERIOUS
				  DEFAULT [
because you have not made the monthly payments of
for the months of , , and , and/or because
______________________________________ _________________________ ]. Late
				  charges and other charges have also accrued to this date in the amount of . The
				  total amount now required to cure this default, or in other words, get caught
				  up in your payments, as of the date of this letter, is .
You may cure this default within THIRTY (30) DAYS of
				  the date of this letter, by paying to us the above amount of , plus any
				  additional monthly payments and late charge which may fall due during this
				  period.
Such payment must be made either by cash, cashier's check,
				  certified check or money order, and made at ____________.
If you do not cure the default within THIRTY (30) DAYS,
we intend to exercise our right to accelerate the mortgage
				  payments
. This means that whatever is owing on the original amount
				  borrowed will be considered due immediately and you may lose the chance to pay
				  off the original mortgage in monthly installments. If full payment of the
				  amount of default is not made within THIRTY (30) DAYS,
we also intend
				  to instruct our attorneys to start a lawsuit to foreclose your mortgaged
				  property. If the mortgage is foreclosed your mortgaged property will be sold by
				  the Sheriff to pay off the mortgage debt.
If we refer your case to our
				  attorneys, but you cure the default before they begin legal proceedings against
				  you, you will still have to pay the reasonable attorney's fees, actually
				  incurred, up to $50.00. However, if legal proceedings are started against you,
				  you will have to pay the reasonable attorney's fees even if they are over
				  $50.00. Any attorney's fees will be added to whatever you owe us, which may
				  also include our reasonable costs.
If you cure the default within the
				  thirty day period, you will not be required to pay attorney's
				  fees.
We may also sue you personally for the unpaid principal
				  balance and all other sums due under the mortgage.
If you have not cured the default within the thirty day
				  period and foreclosure proceedings have begun,
you still have the right
				  to cure the default and prevent the sale at any time up to one hour before the
				  Sheriff's foreclosure sale. You may do so by paying the total amount of the
				  unpaid monthly payments plus any late or other charges then due, as well as the
				  reasonable attorney's fees and costs connected with the foreclosure
				  sale
[
and perform any other requirements under the
				  mortgage
]. It is estimated that the earliest date that such a
				  Sheriff's sale could be held would be approximately . A notice of the date of
				  the Sheriff sale will be sent to you before the sale. Of course, the amount
				  needed to cure the default will increase the longer you wait. You may find out
				  at any time exactly what the required payment will be by calling us at the
				  following number: . This payment must be in cash, cashier's check, certified
				  check or money order and made payable to us at the address stated above.
You should realize that a Sheriff's sale will end your
				  ownership of the mortgaged property and your right to remain in it. If you
				  continue to live in the property after the Sheriff's sale, a lawsuit could be
				  started to evict you.
You have additional rights to help protect your interest in
				  the property. YOU HAVE THE RIGHT TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY
				  OFF THE MORTGAGE DEBT, OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO
				  PAY OFF THIS DEBT. [YOU MAY HAVE THE RIGHT TO SELL OR TRANSFER THE PROPERTY
				  SUBJECT TO THE MORTGAGE TO A BUYER OR TRANSFEREE WHO WILL ASSUME THE MORTGAGE
				  DEBT, PROVIDED THAT ALL THE OUTSTANDING PAYMENTS, CHARGES AND ATTORNEY'S FEES
				  AND COSTS ARE PAID PRIOR TO OR AT THE SALE, [AND THAT THE OTHER REQUIREMENTS
				  UNDER THE MORTGAGE ARE SATISFIED]. CONTACT US TO DETERMINE UNDER WHAT
				  CIRCUMSTANCES THIS RIGHT MIGHT EXIST]. YOU HAVE THE RIGHT TO HAVE THIS DEFAULT
				  CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF.
If you cure the default, the mortgage will be
				  restored to the same position as if no default had occurred.
However,
				  you are not entitled to this right to cure your default more than three times
				  in any calendar year.
The provisions of this §
											7.4 issued under section 14 of the
					 Savings Association Code of 1967 (7 P. S. §
												6020-166).
This section cited in 10 Pa. Code §
											59.15 (relating to additional
					 notices).