Facing Foreclosure in Philadelphia, What to Do Now

Pennsylvania requires a full court case before any property can be sold at a Philadelphia sheriff’s sale. The judicial foreclosure process in Philadelphia County typically takes 12 to 18 months from the first missed payment to the sheriff’s sale. There is no post-sale redemption period — once the sheriff’s deed records, ownership transfers permanently. While Pennsylvania’s judicial process gives Philadelphia homeowners more time than Tennessee or Missouri, a cash sale at any point before the sheriff’s sale resolves the mortgage entirely and stops the process.

If you have received any foreclosure notice on a Philadelphia property, this guide covers every realistic option with honest tradeoffs — including what Pennsylvania’s judicial process actually requires, what happens if you do nothing, and why a pre-sheriff’s-sale transaction is almost always better than letting the process complete.

Pennsylvania’s Judicial Foreclosure Process: How It Works in Philadelphia County

Pennsylvania requires a court action to foreclose on residential property. Your lender cannot schedule a foreclosure sale without first obtaining a judgment in the Philadelphia Court of Common Pleas. This is why Pennsylvania foreclosures take significantly longer than states like Tennessee (60 days, non-judicial) or Missouri (45–60 days, non-judicial).

Step 1: Federal pre-filing waiting period. Federal law requires mortgage servicers to wait 120 days from the first missed payment before filing a foreclosure complaint. During this window, the servicer is required to provide information about loss mitigation options. This is your best window to negotiate a workout.

Step 2: Act 91 Notice (Pennsylvania-specific). Before filing a foreclosure complaint in Pennsylvania, the lender must send an Act 91 Notice — a Pennsylvania-required notice informing you of your right to apply for the Homeowner Assistance Fund (HEMAP) through the Pennsylvania Housing Finance Agency. This notice must be sent at least 30 days before the complaint is filed. You then have 30 days to apply for HEMAP assistance if you choose.

Step 3: Foreclosure complaint filed. The lender files a complaint in the Philadelphia Court of Common Pleas. You have 20 days to respond and file an answer. If no answer is filed, the lender seeks a default judgment. If you contest, the case proceeds through the court system.

Step 4: Philadelphia Residential Mortgage Foreclosure Diversion Program. Philadelphia County operates a mandatory foreclosure diversion program. Before a judgment can be entered, the case is referred to a Residential Mortgage Foreclosure Conciliation Conference. Both the homeowner and the lender’s representative must appear. This conference provides an opportunity to negotiate a loan modification, repayment plan, or short sale — and it adds time to the process (typically 3 to 6 months of conferences and negotiations).

Step 5: Judgment and order of sale. If no agreement is reached, the court enters a judgment in favor of the lender and issues an order of sale authorizing the Philadelphia Sheriff’s Office to conduct the sale.

Step 6: Philadelphia Sheriff’s Sale. Sales are typically held on the first Tuesday of each month at the Philadelphia Sheriff’s Office (100 S. Broad St.). The property is advertised for three weeks before the sale date. The minimum bid is the amount of the judgment.

Step 7: No post-sale redemption. Unlike Michigan or Wisconsin, Pennsylvania provides no post-sale redemption period. Once the sheriff’s deed is recorded — usually within a few weeks of the sale — ownership transfers permanently to the buyer. The former owner has no legal right to reclaim the property.

Total timeline: From the end of the federal waiting period through the Act 91 Notice, foreclosure diversion conferences, complaint, judgment, and sheriff’s sale scheduling: Philadelphia County foreclosures typically complete in 12 to 18 months from the first missed payment. Some cases, particularly those caught up in the diversion program for extended periods, run 18 to 24 months.

Your Options If You Are Behind on a Philadelphia Mortgage

Option 1: Pennsylvania HEMAP (Homeowner Assistance)

Pennsylvania’s Homeowner Emergency Mortgage Assistance Program (HEMAP) provides emergency mortgage assistance loans to homeowners facing foreclosure due to involuntary circumstances (job loss, illness, divorce). HEMAP can pay all or part of your mortgage for up to 24 months while you recover financial stability.

HEMAP applications are submitted through the Pennsylvania Housing Finance Agency after receiving the Act 91 Notice. If approved, HEMAP creates a lien on your property that must be repaid when you sell or refinance. Approval is not guaranteed and depends on your income, the cause of default, and the likelihood that you can resume payments.

Option 2: Philadelphia Foreclosure Diversion Program

Philadelphia’s mandatory diversion program requires the lender to negotiate with you before a judgment can be entered. Even if you do not qualify for HEMAP, the diversion conferences are an opportunity to negotiate a loan modification, forbearance, repayment plan, or short sale directly with the lender’s representative.

Philadelphia’s diversion program is staffed by trained housing counselors. You can request housing counseling assistance from organizations like Philadelphia Legal Assistance or Community Legal Services. These services are free.

Option 3: Sell Before the Sheriff’s Sale

A pre-foreclosure sale — selling the Philadelphia property before the sheriff’s sale date — is the option that preserves the most equity when you cannot keep the home. As long as you sell before the sheriff’s sale, you receive the net proceeds after paying off the mortgage and closing costs.

In Philadelphia, the judicial timeline gives you more room than non-judicial states. However, a traditional listing still may not move fast enough if the process is advanced. Philadelphia MLS average days on market run 45 to 65 days, plus 30 to 45 days to close. If the sheriff’s sale is already scheduled, a cash sale that closes in 7 to 14 days may be the only realistic path.

A pre-foreclosure cash sale also avoids the Philadelphia Residential Mortgage Foreclosure Diversion Program costs, court scheduling uncertainty, and the credit consequences of a completed foreclosure.

Option 4: Short Sale

If you owe more than the property is worth, a short sale lets you sell for less than the loan balance with lender approval. Short sales in Philadelphia typically take 60 to 90 days for lender approval — which can work within the Pennsylvania timeline if you start early in the process.

Key short sale considerations in Pennsylvania: some lenders waive the deficiency balance (the difference between what you owe and what the sale netted); others pursue it. Get any deficiency waiver in writing before closing. A short sale also has less severe credit consequences than a completed foreclosure.

Option 5: Loan Modification or Forbearance

A loan modification permanently changes the terms of your mortgage. Forbearance temporarily suspends or reduces payments with a repayment plan added at the end. Both require the servicer’s cooperation.

The Philadelphia Foreclosure Diversion Program’s mandatory conferences are often the best venue to negotiate a modification directly with the servicer’s representative. If you have a government-backed loan (FHA, VA, USDA, Fannie Mae, Freddie Mac), specific hardship programs may apply.

Option 6: Bankruptcy (Automatic Stay)

Filing Chapter 13 bankruptcy triggers an automatic stay that immediately halts the foreclosure process, including canceling a scheduled sheriff’s sale. Chapter 13 allows you to cure the mortgage arrears over a 3-to-5-year repayment plan while keeping the home.

Chapter 7 also triggers an automatic stay, but the lender can petition for relief from the stay to resume foreclosure. Chapter 7 does not provide a long-term solution for keeping a Philadelphia property.

The Philadelphia Sheriff’s Sale: What Happens If You Do Nothing

If you take no action and the foreclosure completes, the Philadelphia Sheriff’s Office auctions the property. The minimum bid is typically the outstanding mortgage plus fees and court costs. Third-party bidders must pay a deposit at the sale and close within 30 days.

If no third-party bids above the lender’s minimum, the lender takes the property via a credit bid. You receive nothing from the sale — including any equity you had above the loan balance and costs.

After the sheriff’s sale, you must vacate the property. The new owner can initiate eviction through the Philadelphia Municipal Court if you remain.

The credit record consequence: A completed foreclosure stays on your credit report for seven years and prevents you from obtaining a new FHA mortgage for 3 years, a Fannie Mae/Freddie Mac mortgage for 7 years, or a VA mortgage for 2 years.

Why Philadelphia’s Timeline Requires Acting Early

The Philadelphia Foreclosure Diversion Program, while designed to help homeowners, also adds months of procedural delay. If you know you cannot keep the house, every month spent in diversion conferences is a month of mortgage interest, property taxes, and insurance accruing — costs that reduce the equity available to you in a eventual sale.

The optimal window to act is as soon as you know you cannot make payments sustainable — not after you have exhausted the legal process. Sellers who contact us 12 months before a sheriff’s sale have far more options than sellers who contact us 12 days before.

Get a cash offer on your Philadelphia home →

For the full overview of Philadelphia fast-sale options, see: Sell My House Fast Philadelphia PA: Every Real Option in 2026