If you received a foreclosure notice in Philadelphia, you may worry about losing your home. You might also have questions about a conciliation conference and whether it could help you work out a solution with your lender.
A Philadelphia foreclosure conciliation conference gives you an opportunity to discuss possible solutions with your lender before the foreclosure case moves forward.
The foreclosure conciliation conference process may feel confusing, especially when bills keep piling up. However, understanding what happens during the conference can help you prepare. Here is what you need to know about eligibility, paperwork, possible outcomes, and your options if keeping your home becomes difficult.
Quick Summary
The foreclosure conciliation conference in Philadelphia is a local initiative for eligible homeowners to discuss ways to avoid mortgage foreclosure. The program generally serves homeowners who occupy the property as their primary residence. However, a mortgage foreclosure conciliation conference does not guarantee a loan modification or cancel a sheriff’s sale.
How Does Philadelphia’s Foreclosure Diversion Program Work?
The foreclosure diversion program in Philadelphia provides eligible homeowners with an opportunity to work toward a mortgage solution. As a resident, you can access it through the local courts.
When a lender files a residential mortgage foreclosure case in Philadelphia, the court may schedule a conciliation conference if the property and case meet the program’s requirements. The conference gives the homeowner and lender an opportunity to discuss possible ways to resolve the mortgage problem.
Here is a quick overview of what the Philadelphia foreclosure court process looks like in such a situation:
- You fall behind on mortgage payments and receive applicable notices.
- Then, your lender files a foreclosure complaint.
- The court schedules a conciliation conference for a qualifying case.
- You work with a housing counselor to prepare a financial proposal.
- The parties discuss solutions, and the court decides the next procedural steps.
Note: The actual timeline of the whole process depends entirely on court orders and the circumstances of your case.
Who Qualifies for a Conciliation Conference?
The program generally covers Philadelphia residential mortgage foreclosure cases that involve homes occupied by homeowners as their primary residence. Certain properties containing up to four residential units may qualify.
For example, a homeowner living in a rowhouse in Germantown may qualify even after falling several months behind on mortgage payments.
However, a landlord who lives elsewhere and rents out the property may face different rules. Tax foreclosure cases also follow separate procedures.
If you inherited a property or have questions about ownership, contact a housing counselor or foreclosure attorney to clarify your eligibility.
Quick Tip: Access free foreclosure counseling through the Save Your Home Philly Hotline at 215-334-4663.
What Happens at a Mortgage Foreclosure Conciliation Conference?
A mortgage foreclosure conciliation conference allows you and your lender to discuss your financial situation and find a possible way to resolve your mortgage problems.
It is not scheduled to decide your entire foreclosure case. Instead, both sides discuss whether they can agree on a solution that helps you avoid foreclosure.
Let’s look at who attends the meeting and what you typically discuss with the lender.
Who Attends the Meeting?
The following people usually attend the conference:
- You, the homeowner
- Your housing counselor
- Your lender’s attorney or representative
- Your attorney, if you have one
- Court staff who oversee the conference
Expert Note: Carefully read your conference notice to confirm the date, time, location, and any instructions from the court before attending the meeting.
What Do You Discuss With Your Lender?
During the conference, you and your lender may review your financial situation to see whether a mortgage payment arrangement is possible. The discussion may cover:
- Your current income and essential expenses
- How much you owe in missed mortgage payments
- What you can realistically afford each month
- Any documents or proposals the lender still needs
For example, you may have missed several payments after losing your job six months ago. However, if you have recently started working again, your housing counselor can explain your improved financial situation and help you discuss a more affordable payment plan.
Based on your circumstances, your lender may consider changing your loan terms, arranging a repayment plan, or exploring other options to avoid foreclosure.
Your court may schedule another conference to continue the discussion if your lender needs more financial documents.
Important Note: Homeowners should be clear that attending a conciliation conference does not guarantee that your lender will approve a new mortgage arrangement.
How Should You Prepare for Your Conciliation Conference?
Proper preparation can make your conciliation conference more productive. Having your financial documents ready will help you explain your situation to your lender and discuss possible solutions. It can also prevent delays if the lender needs more information.
- First of all, check the date, time, location, and any instructions in your conference notice. Also, keep a copy of your foreclosure complaint with your other documents.
- Then, call the Save Your Home Philly Hotline at 215-334-4663 if you need a Philadelphia housing counselor for foreclosure assistance.
- Next, you need to collect your recent pay stubs, mortgage statements, and bank statements. We also recommend keeping benefit records, letters from your lender, and monthly expense records.
- Then, calculate how much money you have left after paying for food, utilities, transportation, and other essential expenses. By doing so, you will know how much you can realistically afford to pay toward your mortgage.
Once you are prepared for the meeting, arrive on time and bring all the required documents. Also, do not forget to keep the copies of any paperwork you submit.
You can also visit the City of Philadelphia’s housing counseling program to find local agencies that help homeowners facing foreclosure.
Remember, a housing counselor can help you explore mortgage payment options and communicate with your lender. However, if you need help responding to a foreclosure lawsuit or handling court documents, you should also speak with an attorney.
Can a Conciliation Conference Stop Foreclosure or a Sheriff’s Sale?
A foreclosure conciliation conference may help you reach an agreement with your lender and avoid losing your home. However, attending the conference does not automatically stop foreclosure or cancel a scheduled sheriff’s sale.
During the foreclosure diversion process, certain court protections may prevent your lender from moving forward with the case. However, these protections depend on your situation and the court’s orders.
If you and your lender cannot reach an agreement, the lender may continue the foreclosure process.
What if Your Sheriff’s Sale Is Already Scheduled?
If you are wondering how to stop a sheriff sale in Philadelphia, the first step is to confirm your auction date. Then, contact a foreclosure attorney or legal aid organization as soon as possible.
Depending on your situation, you may be able to ask the court to postpone the sale.
According to Philadelphia Legal Assistance, homeowners may have the option to file a petition to postpone a mortgage sheriff’s sale.
Some homeowners may be able to request a conciliation conference by filing a CERDO, which stands for Certification of Premises as Residential, Owner-Occupied and Request for Conciliation Conference. This form tells the court that you live in the property and want to participate in the foreclosure diversion program.
If a sheriff’s sale is already scheduled, ask a foreclosure attorney or legal aid organization about the filing requirements and deadlines immediately. Filing the form too late may not delay the sale.
Important: Applying for a loan modification, planning to sell your home, or requesting a cash offer does not automatically stop a sheriff’s sale. Always confirm that the court has approved any postponement before assuming the auction will not take place.
What Are Your Options After the Conference?
There are several factors that decide your next steps after the conferece. For example,
- How much you owe on your mortgage
- Your current income
- Whether you can afford future payments
If your financial situation has improved, you may be able to keep your home with a new payment arrangement. However, if you can no longer afford your mortgage, selling your property may be another option to consider. Here is a detailed explanation of both options:
If You Want to Keep Your Home
If you want to stay in your home, you can discuss these 4 options with your lender to ensure that your ownership stays intact:
- Loan modification: Ask the lender to change your mortgage terms to make your monthly payments more affordable.
- Repayment plan: If your lender agrees to this option, you can pay off your missed payments while continuing your regular mortgage payments.
- HEMAP assistance: Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program (HEMAP) offers repayable loans to eligible homeowners who are struggling with mortgage payments because of financial hardship. A housing counselor can help you check your eligibility and apply.
- Further negotiations: If you need more time to provide documents or discuss a proposal, request the court to schedule another conference.
Quick Tip: Visit the Pennsylvania Housing Finance Agency’s foreclosure prevention page to learn more about available assistance and eligibility requirements.
If Keeping Your Home Is No Longer Affordable
If you cannot afford to keep your home, selling it before foreclosure may be worth considering.
However, before making a decision, find out exactly how much you owe. This includes your
- Remaining mortgage balance
- Missed payments
- Legal fees
- Any other debts
- Liens against the property
When it comes to selling your home as-is, you generally have 2 main options. The table below compares them based on their potential benefits:
| No | Option | Potential Benefit | What to Consider |
| 1 | Direct cash sale | You sell without making repairs or paying agent commissions | You must resolve the mortgage balance and any title issues. |
| 2 | Short sale | It may allow you to sell for less than you owe | Your lender generally needs to approve the sale. |
However, if you owe more than your home is worth, you may need to discuss a short sale with your lender. In that case, you should also seek advice about whether you will still owe any money after the sale.
Can You Sell Your Philadelphia House During Foreclosure?
Yes, you may be able to sell your Philadelphia home while foreclosure proceedings are underway. However, you need enough time to complete the sale before a scheduled sheriff’s sale, unless the court postpones it.
You should also find out how much you owe on the mortgage and whether any liens or title problems could affect closing. If you want to sell quickly, a cash offer may be worth comparing with other options.
At We Buy Any Philly Home, we buy houses as-is, without repairs, cleaning, showings, or agent commissions. You just need to share your property details. From there, we can prepare a fair, no-obligation cash offer within 24 hours.
We also help address liens and title issues where possible. However, closing depends on required approvals, and selling does not automatically stop foreclosure.
The Final Words
In short, the Philadelphia foreclosure conciliation conference gives a valuable opportunity for homeowners to discuss their mortgage problems.
To benefit from this conference, you simply need to prepare your financial paperwork and attend. You may also use the free counseling services that Philadelphia offers to its residents. If you have a sheriff’s sale approaching, it’s also important that you seek legal assistance immediately.
If keeping your home no longer works financially, we can help you consider a different option. At We Buy Any Philly Home, we offer fair all-cash offers for Philadelphia properties in any condition, with no pressure and no obligation. Contact us for your free cash offer and see whether selling fits your situation.
FAQs
Is a Philadelphia foreclosure conciliation conference free?
Yes, it is completely free because it is a court-arranged program. It provides access to foreclosure discussions, and city-supported housing counseling offers free assistance. If you hire private attorneys for this purpose, they may charge fees, and certain court filings may have separate costs.
Can I attend without a foreclosure lawyer?
Yes, you can because there is no such legal requirement. However, it is better to have a lawyer who can help you understand legal defenses, filing requirements, and court deadlines. A housing counselor may not handle all these tasks.
What if I miss my foreclosure conciliation conference?
The court may remove your case from the diversion program and allow your lender to continue the foreclosure lawsuit. If you come across such a situation by chance, you must contact the court and a foreclosure attorney immediately.
Can I get another conference if my lender needs more documents?
Yes, you can. The court may schedule another conference if your lender requests additional financial documents. The same option may also be available if negotiations require more time. It is recommended to follow the instructions and deadlines in your latest court order.