For more information regarding the Homeowner Assistance Fund launched in February 2022, see the resources below:
Governor’s press release: https://www.governor.pa.gov/newsroom/wolf-administration-launches-350-million-pa-homeowner-assistance-fund/
PHFA information: https://pahaf.org/
PPHAF FAQS: https://pahaf.org/faqs/
What is mortgage foreclosure?
If a homeowner does not make a mortgage payment, the mortgage company can sell the house at a public auction called a “sheriff’s sale” to recover what is owed. This is called “foreclosure.”
In Pennsylvania, mortgage companies must file a lawsuit against the homeowner to start the foreclosure process. This lawsuit is called a mortgage foreclosure action. The court will make a judgment either in favor of the mortgage company or in favor of the homeowner. The mortgage company cannot ask the sheriff to sell a home unless it has a judgment from the court.
What does the Diversion Program do?
The Diversion Program requires that before the court makes a judgment, there must be a “conciliation conference” where the homeowner and the mortgage company can have a chance to work out an agreement. It is called a “diversion program” because the normal lawsuit process is “diverted,” or turned away from its ordinary course, for this conciliation conference to happen.
Who is eligible for the Diversion Program?
To be eligible for participation in this Program, the homeowner must meet the following criteria:
- A complaint for mortgage foreclosure has been filed in the Lancaster County Court of Common Pleas on or after August 1, 2021
- The property is owner-occupied
- The property is the homeowner’s primary residence
- The property contains four or fewer units
- The remaining mortgage balance is less than $400,000
Commercial properties and those which are the subject of bankruptcy, divorce, or estates proceedings are ineligible for the Program.
Participation in this Program begins with the filing of the complaint against the homeowner. At this time, if the case meets the eligibility requirements, it will be automatically entered into the Program.
How does the Diversion Program work?
Upon the filing of the foreclosure complaint, the Court will issue a Case Management Order (1) placing a hold on the foreclosure proceedings, (2) directing the homeowner to attend a housing counseling session FREE OF CHARGE, and (3) scheduling a conciliation conference. The Sheriff’s Office will serve the homeowner with this Order attached to the complaint. Also included with the complaint will be an “Urgent Notice” advising the homeowner of the Diversion Program and of the need to call the Program Coordinator at 717-209-3290 to initiate the process.
The homeowner calls the Program Coordinator at 717-209-3290 within ten days of receipt of the complaint and Case Management Order.
The Program Coordinator explains the Program, does an initial intake interview, and refers the homeowner to a participating nonprofit HUD/PHFA certified housing counseling agency. Presently, the housing counseling agencies in Lancaster County are:
Tenfold (formerly Tabor and LHOP)
308 East King Street
Lancaster, PA 17602
Tel: 717-397-5182
BASE, Inc. (Building And Supporting Entrepreneurship of Southeast Lancaster)
447 South Prince Street, #14
Lancaster, PA 17603
Tel: 717-392-5467
When the homeowner calls the counseling agency, a group and/or individual counseling session will be scheduled within the next 30 days. The homeowner will be told what financial and employment documentation will be needed for the counseling appointment. The housing counseling agency works with the homeowner to prepare a budget and a workout proposal to resolve the loan default in a way that is affordable and realistic for the homeowner. Until the scheduled conciliation conference occurs, the homeowner will continue to work with the housing counselor and the lender to reach an agreement.
If no workout agreement is reached, the homeowner must attend the conciliation conference at the Lancaster County Courthouse. A conciliation conference is a face-to-face meeting between the lender, the homeowner, and the housing counselor to reach a workout solution, before a neutral, court-appointed representative, and to avoid foreclosure.
If the case is not settled before or at the conciliation conference, the Court may remove the case from the Program and authorize the foreclosure action to continue to judgment and possibly to sheriff’s sale or continue the case for another conference allowing enough time to reach an agreement between the parties.
Homeowners in the Diversion Program have access to legal advocates to assist them through this process.
What happens if the Homeowner fails to appear?
If the homeowner fails to follow through with appointments with the housing counseling agency or fails to appear at the conciliation conference, the automatic stay will be lifted, and the case will proceed through the normal course of litigation and the mortgage company can get a judgment in its favor and foreclose on the property.
What are the lenders’ responsibilities?
The lenders must provide certain documentation to the homeowner and the Program Coordinator, as required by the Program, and must participate in meaningful negotiations with the housing counselor and/or legal counsel to resolve the mortgage delinquency.
The lender’s counsel must attend the scheduled conciliation conference with knowledge of the case and a willingness to attempt to reach a resolution. Lenders who fail to follow the requirements of the Program or fail to appear at the scheduled conference will be sanctioned by the Court and may have the case dismissed. Lender FAQs Click Here
Contact Information
Diversion Program Coordinator: Janis I. Jeffreys, Esq.
Lancaster County Courthouse
50 North Duke Street
Lancaster, PA 17608
Tel: 717-209-3290
E-mail: consumerdebtdiversionprograms@co.lancaster.pa.us
The Honorable Leonard G. Brown, III will be overseeing the Program and can be reached at (717) 293-7288.
Residential Mortgage Foreclosure Diversion Partners
Tenfold (formerly Tabor and LHOP)
308 East King Street
Lancaster, PA 17602
Tel: 717-397-5182
BASE, Inc. (Building And Supporting Entrepreneurship of Southeast Lancaster)
447 South Prince Street, #14
Lancaster, PA 17603
Tel: 717-392-5467
Lancaster Bar Association
28 East Orange Street
Lancaster, PA 17602
Tel: 717-393-0737
MidPenn Legal Services
38 North Christian Street
Lancaster, PA 17602
Tel: 717-299-0971
Lancaster County Prothonotary’s Office
50 North Duke Street
Lancaster, PA 17602
Tel: 717-299-8282
Lancaster County Sheriff’s Office
50 North Duke Street
Lancaster, PA 17602
Tel: 717-299-8200
Documents and Forms
Amended Administrative Order (effective March 7, 2022)
Administrative Order No. 27-2021 (effective August 1, 2021)
Urgent Notice – Eligible Property
Aviso Urgente - Propiedad Elegible
Urgent Notice – Ineligible Property
Aviso Urgente - Propiedad no Elegible
Lender FAQs
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Exhibit 10
Exhibit 11
Exhibit 12
Required Forms (effective August 1, 2021)
Certification Cover Sheet
Certificate of Service
Amount Due Schedule
Defendant’s Objection to Plaintiff’s Certification Cover Sheet and Request for Stay
Affidavit of Compliance by Plaintiff
Praecipe for Entry of Limited Appearance
Praecipe for Withdrawal of Limited Appearance
Notice that Plaintiff’s Representative will Appear through the Use of Advanced Communication Technology and Designation of Authority to Sign Settlement Agreement
Certificate of Settlement Authority
Certification Regarding Eligibility of Residential Foreclosed Premises and Notice of RMFD Program
Application for Entry into RMFD Program
Application for Entry into RMFD Program and Request for Stay of Sheriff’s Sale
Application for Re-Entry into RMFD Program
Next Steps for Non Eligible Properties