PENNSYLVANIA

1. Understand Pennsylvania’s Foreclosure Process

Knowing the timeline helps you act before key deadlines pass.

• Act 6 Notice – Required for most residential loans; gives 30 days to cure default before a foreclosure lawsuit can start.

• Act 91 Notice – Triggers access to Pennsylvania’s HEMAP program (see below).

• Complaint Served – You have 20 days to respond; if you don’t, lender may get a default judgment.

• Judgment & Sheriff Sale – The court orders sale of your property; the date is advertised in advance.

• Key Point: Acting early — especially during the Act 91 window — keeps the most options open.

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2. Use the Homeowners’ Emergency Mortgage Assistance Program (HEMAP)

• What it is: A state-run loan program from the Pennsylvania Housing Finance Agency (PHFA) to help homeowners behind on mortgage payments due to circumstances beyond their control.

• How it works:

  • Can provide a one-time loan to cure the delinquency, or ongoing monthly assistance for up to 24–36 months (up to $60,000 total).

  • You repay over time, usually at low interest (often 1% or less).

  • While the HEMAP application is pending, foreclosure is legally paused.

• Eligibility: Must have received an Act 91 Notice; must show you can resume payments in the future.

• Apply through: PHFA or a HUD-approved housing counseling agency.

• Website: phfa.org

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3. Request Loss Mitigation from Your Lender

You have the right to apply for loan workouts such as:

• Loan modification – Extends term, lowers interest, or adds missed payments to the loan.

• Repayment plan – Catch up gradually in addition to your normal payment.

• Forbearance – Temporary payment reduction or suspension.

• Partial claim (for FHA loans) – Missed payments moved into a no-interest subordinate loan.

Tip:
Submit a complete loss mitigation application (hardship letter, income proof, bank statements) before a sheriff sale is scheduled. Federal rules require lenders to review and respond before proceeding with foreclosure if the application is timely.

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4. Participate in Philadelphia’s Residential Mortgage Foreclosure Diversion Program (if applicable)

• Who qualifies: Homeowners in Philadelphia County.

• What it offers: Free housing counseling + a court-supervised mediation session between homeowner and lender before a sheriff sale.

• Why it matters: Has saved thousands of homes since 2008.

• Contact: Philadelphia Court of Common Pleas or a housing counseling agency.

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5. Explore State & Local Assistance Beyond HEMAP

Some counties offer additional help:

• Emergency housing funds through county offices.

• Utility assistance programs that free up money for mortgage payments.

• Nonprofit grants for housing stabilization.

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6. Legal Protections & Representation

• Consult a foreclosure defense attorney or Legal Aid of Southeastern PA. Even if you can’t afford a lawyer, many nonprofits offer free or low-cost help.

• Filing an Answer to the foreclosure complaint forces the lender to prove its case and can buy time to work out a solution.

• Bankruptcy (Chapter 13) is still an option if you have income to cure arrears over 3–5 years — but see my earlier notes if affordability is an issue.

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7. Practical, Non-Legal Steps

• Prioritize the mortgage above unsecured debts if you want to keep the home.

• Cut or pause nonessential expenses temporarily to direct funds to housing.

• Consider selling before foreclosure if saving the home isn’t financially realistic — this can protect equity and credit.

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Quick-Reference Table — PA Foreclosure Avoidance Options

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NEW JERSEY

A. Foreclosure Mediation Program

• What it is: Statewide court-run mediation program offering free HUD-certified housing counseling and a court-appointed mediator to help negotiate a workout before foreclosure judgment.

• Eligibility: Available to any homeowner facing foreclosure on a primary residence.

• How to apply: File the mediation request promptly after receiving foreclosure papers.

• Website: njcourts.gov

B. Emergency Rescue Mortgage Assistance (ERMA)

• What it is: Administered by NJ Housing & Mortgage Finance Agency; offers up to $75,000 to cover arrears and reinstate loans for those affected by COVID-related hardship.

• Status: Funding status varies — check njerma.com.

C. NJ Foreclosure Timeline Advantages

• NJ has one of the longest foreclosure timelines in the U.S. (often 18–24 months), giving more time to seek workouts or mediation.

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MARYLAND

A. Foreclosure Mediation Program

• What it is: Required by state law before a lender can complete foreclosure on an owner-occupied home.

• Process: You receive a “Final Loss Mitigation Affidavit,” then have 25 days to request mediation.

• Website: dhcd.maryland.gov

B. Maryland HOPE Initiative

• Free housing counseling, help with loan modification paperwork, and advocacy with lenders.

• Hotline: 1-877-462-7555.

C. Local & State Grants

• While the Maryland Homeowner Assistance Fund closed to new applicants in 2023, some counties still run emergency mortgage assistance programs.

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TENNESSEE

A. Tennessee Housing Development Agency (THDA)

• TN Homeowner Assistance Fund (TNHAF): Provided up to $40,000 in forgivable grants to cover arrears. Closed to new applications in Aug 2023, but check for reopening or successor funds.

• Website: thda.org

B. Loss Mitigation with Servicers

• Tennessee has non-judicial foreclosure in many cases, so timelines are fast — sometimes under 60 days from notice to sale.

• Immediate communication with your lender and filing a complete loss mitigation application is critical.

C. HUD Counseling Agencies

• THDA partners with local agencies to help with modification requests, budgeting, and avoiding scams.

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FLORIDA

A. Court-Run Foreclosure Mediation

• Florida is a judicial foreclosure state, meaning all foreclosures go through court — this can give homeowners months to negotiate.

• Some counties (e.g., Miami-Dade, Palm Beach) offer court-based mediation programs.

B. Florida Housing Finance Corporation

• Runs foreclosure prevention resources and connects homeowners to HUD-certified housing counselors.

• Website: floridahousing.org

C. Local Assistance

• Counties sometimes have Emergency Mortgage Assistance Programs, especially after hurricanes or economic downturns.

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5. Universal Steps That Apply in All States

Regardless of location:

1. Contact Your Lender’s Loss Mitigation Department Early

   • Ask about loan modification, repayment plans, forbearance, or partial claim options.

2. Work with a HUD-Certified Housing Counselor

   • Free help with paperwork and negotiation.

   • HUD hotline: 1-800-569-4287.

3. Respond to Court Papers & Notices

   • Filing an Answer prevents default judgment and buys time.

4. Apply for State or County Housing Assistance

   • Even if main programs are closed, local funds may be available.

5. Avoid Scams

   • Only work with nonprofit counselors, your lender, or your attorney — not “foreclosure rescue” cold callers.

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Quick-Reference Table

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TEXAS

A. Foreclosure Process Basics

• Type: Primarily non-judicial foreclosure (no court case required).

• Timeline: Very fast — a home can go from notice of default to sale in as little as 41 days.

• Key Dates:

  • Notice of Default: Usually gives 20 days to cure.

  • Notice of Sale: Must be sent at least 21 days before auction.

  • Sales occur first Tuesday of each month.

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B. Options to Stop Foreclosure in TX

1. Texas Homeowner Assistance Fund (TXHAF)

   • What it offered: Up to $40,000 for mortgage arrears + $25,000 for property-related expenses.

   • Status: Still accepting applications as of late 2023 — check tdhca.texas.gov.

   • Applying can pause foreclosure while reviewed.

2. Loss Mitigation Directly with Servicer

   • Apply for loan modification, repayment plan, or forbearance.

   • Tip: Send a complete application ASAP to invoke federal foreclosure review rules.

3. Refinance or Reverse Mortgage (for seniors)

   • Can pay off arrears without moving.

   • Reverse mortgage stops monthly payments for homeowners 62+.

4. Chapter 13 Bankruptcy

   • Stops foreclosure immediately via automatic stay.

   • Repays arrears over 3–5 years.

5. Texas Foreclosure Prevention Counseling

   • HUD-approved agencies offer free help with lender negotiations.

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ARIZONA

A. Foreclosure Process Basics

• Type: Mostly non-judicial trustee sales.

• Timeline: Minimum 91 days from recording of Notice of Trustee Sale to auction.

• Key Points:

  • Borrower can reinstate loan by paying arrears up to 5:00 p.m. the day before sale.

  • Arizona has no statutory right of redemption after the trustee sale for most mortgages.

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B. Options to Stop Foreclosure in AZ

1. Arizona Foreclosure Prevention Assistance

   • Some county-based programs (e.g., Maricopa County) offer emergency mortgage assistance for qualified homeowners.

2. Loss Mitigation / Loan Modification

   • As in TX, federal mortgage servicing rules require review of complete applications before a sale can occur.

3. Arizona Homeowner Assistance Fund

   • Funded by the American Rescue Plan Act; offered mortgage reinstatement and other aid.

   • Status: Many states have closed HAF programs, but check housing.az.gov for updates.

4. Mediation Programs

   • Arizona does not have a statewide mandatory foreclosure mediation program.

   • Some judges may encourage settlement conferences in judicial cases.

5. Bankruptcy

   • Chapter 13 filing will stop the sale and allow arrears to be paid over time.

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3. Shared Urgency in TX and AZ

Because both states are fast-track foreclosure states, the homeowner’s window to act is short.
Key advice:

• Immediately request a loss mitigation package from the lender.

• Work with a HUD-certified housing counselor for free help.

• If foreclosure sale is imminent, Chapter 13 bankruptcy is the most reliable legal stop.

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Quick Reference Table