Save Your Home This May: Legal Options for Struggling Homeowners in PA

Every week, we sit down with Lancaster County homeowners who have been searching for foreclosure lawyers in Lancaster, PA, and are not sure what they are going to find. Most of them come in expecting bad news. What we tell them is this: you almost certainly have more options than you think. But time is the one thing we cannot get back, and waiting makes every option harder.

May is a particularly difficult month for families in this area. Spring property tax notices arrive. After a long winter of leaning on credit cards to keep things going, the balances have quietly grown into something that feels out of reach. That combination of mortgage pressure and consumer debt is exactly what we help people work through every day.

Here is what we want you to understand before you do anything else.

How Pennsylvania Foreclosure Works

Pennsylvania is a judicial foreclosure state. Your lender cannot simply take your home. They have to file a lawsuit, go through the courts, and obtain a judgment before a sheriff's sale can occur.

Under federal mortgage servicing rules at 12 C.F.R. Section 1024.41, lenders generally cannot initiate foreclosure until a borrower is more than 120 days behind. Before filing, they must send an Act 6 Notice giving you at least 30 days to cure the default. After a judgment is entered, the sheriff must give at least 30 days' notice before a sale.

The full process from the first missed payment to the sheriff's sale can take several months or well over a year. That timeline works in your favor, but only if you use it. Pennsylvania does not offer a redemption period after a foreclosure sale. Once that property is sold, it is gone. We have seen too many families wait too long, and we do not want that to happen to yours.

What Bankruptcy Can Do for Your Home

The moment we file a bankruptcy petition on your behalf, the automatic stay takes effect. It is a federal court order that immediately halts all collection activity, including a scheduled foreclosure or sheriff's sale. If your sale is set for next week and we file today, it stops. That is not a loophole. That is the law working exactly as it was designed.

Chapter 13: The Option That Saves Homes

Chapter 13 is the chapter we turn to most often when a client wants to keep their property. We propose a repayment plan, typically three to five years, that allows you to catch up on missed mortgage payments while resuming your regular monthly payment in the future. Pennsylvania Chapter 13 guidelines generally set plan confirmation within 2 to 3 months of filing, though your first payment is due within 30 days of filing.

Chapter 13 also discharges most unsecured debts, including credit card balances, upon successful completion of the plan. That matters because eliminating that debt frees up the cash flow you need to actually sustain your mortgage in the future.

Chapter 7: Temporary Relief, Limited Home Protection

Chapter 7 also triggers the automatic stay and can quickly discharge unsecured debts. But it does not include a plan to cure mortgage arrears, and the stay is eventually lifted if you cannot bring the mortgage current.

We recommend Chapter 7 for clients who are current or nearly current on their mortgage but are drowning in credit card or medical debt that is preventing them from staying current. It can also be the right path for someone who has decided to walk away from a property they can no longer afford and wants a clean discharge of the associated debt.

Lancaster County's Foreclosure Diversion Program

Not every client we meet needs to file for bankruptcy. Early in our practice, we served as Program Coordinator and Civil Staff Attorney at the Lancaster County Court of Common Pleas, where we helped create and run the county's Residential Mortgage Foreclosure Diversion Program. We also helped launch the Credit Card Diversion Program at the same courthouse.

We know how these programs work from the inside. If you are in early-stage foreclosure, we can tell you quickly whether diversion is a realistic option in your case and what to expect from the process.

When You Should Call Us

Please do not wait for the sheriff's sale notice. By then, our options are narrower, and the pressure is intense. Reach out when:

• You have missed two or more mortgage payments with no plan to catch up
• You have received an Act 6 Notice or a foreclosure complaint
• Credit card debt is the reason you cannot make the mortgage payment
• You are not sure whether Chapter 7 or Chapter 13 is the right fit

We serve Lancaster County and surrounding counties. Call our office at (717) 298-0852 or contact us through our website and let's talk through where you stand. There is no obligation, and there is no judgment. We have seen every kind of financial situation, and we are here to help you find a way through.

Frequently Asked Questions

How do I find foreclosure lawyers near me in Lancaster, PA?

Look for attorneys admitted to the Middle District of Pennsylvania bankruptcy court who regularly handle Chapter 7, Chapter 13, and foreclosure cases for local families. Our office is based in Lancaster and serves Lancaster County and the surrounding region. Call (717) 298-0852 to schedule a free consultation.

Can bankruptcy stop a scheduled sheriff's sale in Pennsylvania?

Yes. Filing bankruptcy triggers the automatic stay, which immediately halts all foreclosure activity, including a scheduled sheriff's sale, as long as we file before the sale is finalized. Timing is everything. Even filing the day before the sale can stop it.

What is the difference between Chapter 7 and Chapter 13 for homeowners?

Chapter 13 allows you to keep your home by catching up on missed mortgage payments through a court-approved repayment plan over three to five years. Chapter 7 triggers the automatic stay and discharges unsecured debts but does not include a plan to cure mortgage arrears. If keeping the home is the priority, Chapter 13 is almost always the better fit.

How long does the foreclosure process take in Pennsylvania?

Federal law requires lenders to wait at least 120 days after a missed payment before initiating foreclosure. The Act 6 Notice must be sent at least 30 days before the complaint is filed. After judgment, there is at least 30 days' notice before a sheriff's sale. The full process often takes several months to more than a year, but acting early gives us the most to work with.

Does Lancaster County have a foreclosure diversion program?

Yes. We helped create and run Lancaster County's Residential Mortgage Foreclosure Diversion Program through the Court of Common Pleas. Eligibility depends on your specific circumstances and whether your lender participates. We can tell you quickly in a consultation whether it is a viable path for your case.

Can I keep my home if I file Chapter 13 in Pennsylvania?

In most cases, yes. Chapter 13 allows you to cure your mortgage arrears over time while resuming regular monthly payments. As long as you complete the plan and stay current going forward, you keep the property. We will review your income, debts, and equity in our first meeting to confirm whether you qualify.

Is it too late to stop foreclosure if a sale date is already set?

Not necessarily. In Pennsylvania, we can stop a foreclosure up to the point the sale is finalized. Filing bankruptcy before bidding begins triggers the automatic stay and halts the proceedings. That said, last-minute filings leave very little margin for error. The sooner you call, the more options we have. Reach out to our office at (717) 298-0852, and let's figure out the next steps together.

About the Author:

Matthew Lazarus | Attorney, Debt Relief & Bankruptcy Law
Lancaster, PA | Chapter 7 & Chapter 13 Bankruptcy Specialist

Matthew Lazarus is a dedicated bankruptcy attorney focused on helping individuals and families navigate financial hardship with clarity and confidence. With over a decade of experience, he previously oversaw operations at one of the largest bankruptcy filing law firms in Eastern Pennsylvania, where he regularly handled complex cases and represented clients in Federal Bankruptcy Court. After returning to Lancaster County, Matt played a key role in developing impactful local programs, including the Residential Mortgage Foreclosure Diversion Program and the Credit Card Diversion Program, both designed to help residents avoid foreclosure and manage debt through structured solutions. His work reflects a deep commitment to guiding people through some of the most challenging financial situations with practical, results-driven support.

Matt has served clients from all walks of life, from business owners and professionals to public servants and self-employed individuals, giving him a broad understanding of how financial strain can affect anyone. He earned his Juris Doctor from Roger Williams University Law School and a Bachelor of Arts in Political Science and Business from Virginia Tech, graduating Cum Laude. Licensed to practice in Pennsylvania and admitted to multiple federal courts, Matt remains actively involved in the legal community. He lives in Lancaster with his wife and son and enjoys cycling, fitness, and outdoor activities including hiking and skiing.