In Pennsylvania, mortgages on real estate aren’t always held by banks or mortgage companies. Individuals who sell real estate sometimes “take back paper” from their buyers to, in effect, finance the purchase price. The “paper taken back” from the buyer frequently includes a mortgage on the real estate which is satisfied when the buyer pays back the purchase price of the real estate to the seller.
Like “institutional” mortgages, privately-held mortgages can go into default if mortgage payments are not made. The preferred remedy would be the same as any bank or mortgage company would have—foreclosure of the mortgage and sheriff’s sale of the real estate. However, while banks and mortgage companies may have counsel with whom they deal on a regular basis for their foreclosure work, individuals holding mortgages may find themselves not knowing how to proceed when payments stop coming.
At Stark & Stark, we assist both lenders and private mortgage holders with foreclosures in all counties of Pennsylvania. If you are a private mortgage holder with a mortgage in default, contact us for expert guidance through the foreclosure process.