Behind on Your Mortgage in Philadelphia? You Have More Options Than You Think

If you’ve fallen behind on your mortgage, you’re probably dealing with stacks of letters, calls from your lender, and maybe a notice with a sheriff sale date on it. It’s stressful, and it’s easy to freeze up. The most important thing you can do is act early, because the more time you have, the more options you have.

We’re As Is Home Buyers, a Philadelphia company at 1110 Pine St that buys houses as-is. Selling is one option, but it isn’t the only one, and it may not be the best one for you. This page lays out the general picture and the free resources available to Philadelphia homeowners. It’s general information, not legal advice.

Start with free help

Before you talk to any buyer, including us, call the Save Your Home Philly Hotline at 215-334-HOME (4663). It’s a free service run by Philadelphia Legal Assistance with the City of Philadelphia. It can answer questions about mortgage and tax foreclosure and connect you with a housing counselor, and in some cases with free legal help.

Philadelphia also has a Residential Mortgage Foreclosure Diversion Program in the Court of Common Pleas. For owner-occupied homes (generally up to four units), the court schedules a “conciliation conference” before the house can go to sheriff sale. That’s a chance to sit down with your lender, with a housing counselor’s help, and try to work out a loan modification or another alternative. If you don’t show up, the case usually moves forward without you, so take any court notice seriously.

How foreclosure generally works in Pennsylvania

Here’s a simplified overview:

1. Missed payments. After a few missed payments, the lender usually starts sending formal notices.
2. Pre-foreclosure notice. For many owner-occupied homes in Pennsylvania, lenders must send a notice (often called an “Act 91 notice”) before filing. It explains your rights and points you to housing counseling and the state’s Homeowners’ Emergency Mortgage Assistance Program (HEMAP), run by the Pennsylvania Housing Finance Agency.
3. Foreclosure complaint. The lender files a lawsuit in the Philadelphia Court of Common Pleas. Don’t ignore court papers. Respond, and get help right away.
4. Sheriff sale. If the case moves forward, the property can be listed for sheriff sale. Philadelphia mortgage foreclosure sales are currently held online through the Sheriff’s Office, and listings can be looked up on its website.
5. Postponements. Sales are sometimes postponed, for example by agreement with the lender or by court order. Don’t count on one. Ask a counselor or attorney about your situation.

Your possible options

Depending on your situation, these may include:

• Loan modification or repayment plan with your lender
• Forbearance if your hardship is temporary
• Assistance programs, if you qualify
• Refinancing, if your credit and equity allow it
• Selling the house before the sheriff sale, on the open market or to a direct buyer
• Short sale, if you owe more than the house is worth and the lender agrees
• Deed in lieu of foreclosure, where the lender agrees to take the house back

A housing counselor or attorney can help you compare these.

When selling makes sense

If keeping the home isn’t realistic, selling before the sheriff sale can let you:

• Pay off the mortgage and keep any remaining equity, instead of leaving the price up to an auction
• Move on your own terms and timeline
• Avoid having a completed foreclosure

If you have time and the house is in good shape, listing with an agent may bring a better price. If time is short or the house needs work, a direct sale can move faster. We’ll be honest about which makes more sense. You can read how our process works on our How It Works page.

How we work with homeowners facing foreclosure

• We’ll review your timeline with you and be realistic about what’s possible before your sale date.
• We buy as-is: no repairs, no clean-out, no showings.
• We give you a written offer, and you’re free to review it with a counselor or attorney.
• We can sometimes advance part of the cash before closing.
• We can assist with relocation and moving.
• A title company requests the payoff from your lender so the loan is paid at closing.
• We don’t charge upfront fees, and the sale closes through a title company. Be cautious of anyone who asks for money upfront or asks you to sign over your deed outside a proper closing.

Selling a house that also has an estate or tenant situation? See our pages on selling an inherited house in Pennsylvania and selling a Philadelphia house as-is.

Frequently Asked Questions

Can I still sell my house if a sheriff sale date has been set?

Often, yes, as long as the sale closes and the lender is paid before the sheriff sale, or the lender agrees to postpone. The closer the date, the tighter the timeline, so call as early as you can.

What happens to my equity if the house goes to sheriff sale?

At a sheriff sale, you lose control over the price. Selling beforehand gives you a better chance of keeping any equity left after the mortgage and liens are paid. A counselor or attorney can explain how this applies to you.

Should I talk to a housing counselor first?

Yes. Counseling through the Save Your Home Philly Hotline (215-334-4663) is free, and it may help you find a way to keep your home. We’re happy to talk with you either way.

How can I spot a foreclosure rescue scam?

Be wary of anyone who charges upfront fees to “save” your home, tells you to stop talking to your lender or counselor, or asks you to sign your deed over before a real closing. If something feels off, call the hotline before you sign anything.

Do you charge anything to make an offer?

No. Our offer is free and there’s no obligation.

Let’s look at your options together

If you’re behind on your mortgage in Philadelphia and want a straight answer about selling, call (215) 515-0702 or email info@asishomebuyersphilly.com. You can also request an offer on our Sell My House Fast page. We’ll listen, respect your timeline, and encourage you to get free counseling too.

As Is Home Buyers · 1110 Pine St, Philadelphia · (215) 515-0702 · info@asishomebuyersphilly.com · See or leave a Google review