In Pennsylvania, foreclosed properties, as well as those with accrued unpaid taxes can be auctioned through the sheriff’s office. In most counties in this state, the sheriff’s office organizes a sale for delinquent properties every month. For homeowners, this is a painful process. Losing a home is a traumatizing occurrence, and has dangerous effects including depression. Luckily, there are steps that one can take to avoid this type of a situation. For anyone facing the risk of losing their home, here is how to stop a sheriff sale in PA.
1. File for bankruptcy
Most poor people, the ones who usually suffer the brunt of foreclosures, suffer due to lack of knowledge. Many don’t know how to use bankruptcy laws in their favor. Bankruptcy is a tool that the rich constantly use to protect themselves and their assets. So, how does it apply to a sheriff sale in P.A? Well, when you file for bankruptcy, you automatically put a stay on all debts and their resultant actions. This includes cash demands by creditors as well as possible foreclosure on your home. This means that when you file for bankruptcy, it would be illegal to do a sheriff sale on your home. In fact, if you file for chapter 13 bankruptcy, you have the right to continue living in your home as you find ways to repay your debts.
2. File for tax sale redemption
Under the law, a homeowner who loses their home due to tax arrears has the right to get back their home if they file for redemption with 9 months. A redemption simply means that after paying their taxes, auction price and all related expenses, a homeowner should get back their home. However, there are restrictions to filing a redemption. The most important one is that the home should have been used as residence 90 days before the sale. Filing for a tax redemption can help you in that it gives you time to work, pay and keep your home. If you really value your home, you can work multiple jobs, or do side businesses that can help you get back your home.
3. Negotiate for a short sale
Rarely do sheriff sales reflect the true value of a property. Using this knowledge, a homeowner facing foreclosure can approach the lender and negotiate for a short sale. If the lender accepts it, the foreclosure process is automatically called off. Negotiating for a short sale is a good strategy. That’s because foreclosure is not a process that anyone wants to go through. It’s a lengthy legal process that leaves both the lender and the homeowner drained, and has no winners. It’s even harder for the homeowner who could be dealing with other issues such as job loss, sickness among other issues. In essence, if the homeowner can find a way to convince the lender to accept a short sale, it would be the best choice. The process is short, which gives the borrower the peace of mind needed to move on, and rebuild their lives.
