Pennsylvania homeowners have the right to “cure” a mortgage loan (i.e., pay off all arrears and reinstate the loan) up to one hour before the Sheriff Sale. (41 Pennsylvania Statutes Section 404). Pennsylvania Law first created a statutory right to cure a mortgage default in 1974 by establishing Act 6, also known as the Loan Interest and Protection Law. By “cure,” the statute means a restoration of the mortgage “to the same position as if the default had not occurred.” Act 6 established the right to cure defaults up until one hour before a sheriff sale. (41 P.S. Section 404).
Pennsylvania law requires all banks to provide the home owner with a notice of default before a foreclosure action can be filed. Act 6 requires banks to send a notice of default 30 days prior to filing a mortgage foreclosure complaint. Act 6 only applies to home owners whose mortgage balance is less than $221,540.00. Another Pennsylvania law referred to as Act 91 also requires banks to send home owners information on Pennsylvania Homeowner’s Emergency Assistance Program (HEMAP). The Pennsylvania Housing Finance Agency (PHFA) administers the HEMAP program which provides home owners with cash assistance to cure the late payments on their mortgage.
Pennsylvania law protects homeowners by providing a statutory right to cure a defaulted mortgage through Act 6 and Act 91. Pennsylvania law allows homeowners to reinstate a mortgage that has defaulted up until one hour before a sheriff’s sale. Act 6 only applies to “owners of relatively modest homes” as the current jurisdictional limit for Act 6 is $221,540. Act 6 requires mortgage lenders in Pennsylvania to give written notice of its intention to foreclose at least thirty (30) days before it can bring a foreclosure. The notice of intention to foreclose must be sent by registered or certified mail to