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Authorizing joint hearings by the Committees on Public Safety and Housing, Neighborhood Development and Homelessness to conduct hearings on mortgage foreclosure notice procedures and requirements under Pennsylvania law that must be provided to residential homeowners, property occupants and all other parties of interest.
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WHEREAS, Under Act 6 of 1974 and Act 91 of 1983, Pennsylvania law requires notice to be provided to owners and other parties of interest of residential property at least 30 days prior to the filing of an action for mortgage foreclosure. In addition, many Pennsylvania mortgage documents such as the promissory note or the mortgage securing the note also require specific notice requirements prior to the acceleration of the loan; and
WHEREAS, During the Great Recession from 2008-2010 and the accompanying housing crises, many Philadelphians faced unprecedented residential mortgage foreclosures due to predatory lending, job loss and the overall instability of the nation's financial condition; and
WHEREAS, Many Philadelphia homeowners sought assistance to remain in their homes through PA Housing Finance Agency's (PHFA) Homeowner Emergency Assistance Program (HEMAP). HEMAP effectively delayed foreclosure proceedings for a minimum of 120 days which provided a great opportunity for homeowners suffering temporary economic setbacks to reverse and recover from their situations. Some homeowners also qualified for bridge loans that kept 85 percent of those who have received such loans in their homes; and
WHEREAS Compliance with Pennsylvania mortgage foreclosure notice requirements informs property owners and other interested parties of available consumer debt counseling, opportunities for conciliation with mortgagor, as well as provides time for homeowner to cure the debt or seek other provisions to avert homelessness; and
WHEREAS, Unfortunately, under the Corbett Administration, HEMAP was defunded in 2011 after providing appr...
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