Facing Foreclosure in Philadelphia? Your Options Before a Sheriff Sale

Falling behind on your mortgage is stressful, and the letters and court papers that follow can be hard to read. The good news is that Philadelphia homeowners have free help and some important protections. This guide explains the Act 91 notice, Philadelphia’s Residential Mortgage Foreclosure Diversion Program, how sheriff sales work, and your main options, including selling before the sale if keeping the house isn’t realistic.

I’m Nick Maccini, a local Philadelphia investor and the founder of Nick Buys Houses. My team and I have done 400+ deals since 2020. I’m not an attorney or a housing counselor, so my first suggestion is the free help listed below. If selling turns out to be your best option, call (215) 792-3189.

Start here: free foreclosure help in Philadelphia

The City’s foreclosure prevention program provides housing counseling and legal aid to Philadelphia residents facing the loss of their homes due to mortgage or tax foreclosure. Any Philadelphia homeowner who lives in the at-risk property may participate. The way in is the Save Your Home Philly Hotline at (215) 334-4663 (City of Philadelphia). The Philadelphia Sheriff’s Office calls the hotline the only government-authorized foreclosure prevention program in Philadelphia and says it should be your first call (Philadelphia Sheriff).

You can also find a HUD-approved housing counseling agency through the CFPB or call the CFPB at (855) 411-2372 to be connected with a housing counselor. The CFPB stresses that you don’t have to pay anyone to help you avoid foreclosure (CFPB).

The Act 91 notice and HEMAP

Pennsylvania law requires mortgage lenders to send an Act 91 Notice to homeowners facing foreclosure. The notice explains the Homeowner’s Emergency Mortgage Assistance Program (HEMAP), run by the Pennsylvania Housing Finance Agency (PHFA) (Act 91 Notice).

The 33-day window

To apply for HEMAP, you must have a face-to-face meeting with a HEMAP-approved counseling agency within 33 days of the date of the notice. The meeting is free and is the only way to apply. If you apply on time, the counselor has 30 days to submit your application, HEMAP has 60 days to decide, and as long as the process stays timely, your lender can’t take foreclosure action (PHFA). You can still apply after the deadline, but a late application won’t stop the lender from foreclosing.

HEMAP’s main requirements include that the home is owner-occupied and that you fell behind because of circumstances beyond your control. Mortgages insured under FHA Title II are not eligible (PHFA HEMAP). For HEMAP questions, call 1-800-342-2397.

Curing the default

The Act 91 Notice also explains that you can save your home by curing the default, meaning paying the lender everything currently due, including reasonable late charges, attorney fees and other costs. You may cure the default up to one hour before a sheriff’s sale, up to three times in any calendar year (Act 91 Notice).

Philadelphia’s Residential Mortgage Foreclosure Diversion Program

Philadelphia’s Court of Common Pleas runs the Residential Mortgage Foreclosure Diversion Program under Joint General Court Regulation No. 2008-01. Under that regulation, mortgage foreclosure cases on owner-occupied residential properties must be scheduled for a conciliation conference before the property can be sold at sheriff sale. “Residential” here means a property in Philadelphia with no more than four units, including a condo or co-op unit, that the owner lives in as their principal residence (Joint General Court Regulation 2008-01).

The court’s order directs the homeowner to call the Save Your Home Philly Hotline right away, to be referred to a housing counseling agency, and to cooperate with that agency by providing financial and employment information and completing loan resolution proposals. The lender’s servicer has to attend the conference too, and may appear by phone.

Properties that aren’t owner-occupied or aren’t residential don’t get a conciliation conference and can go to sheriff sale as scheduled. The court has a form homeowners can use to certify the property is their owner-occupied home and request a conference (certification and request form).

How sheriff sales work in Philadelphia

When a homeowner can’t pay their mortgage or property taxes, the property can be sold at a public auction called a sheriff’s sale (City of Philadelphia). The Philadelphia Sheriff’s Office holds these auctions online through Bid4Assets, and you can look up a property’s sale date and status on the Sheriff’s mortgage foreclosure auction page.

A few points from the Sheriff’s mortgage foreclosure conditions of sale (Philadelphia Sheriff):

• The sale will not be stopped unless the Sheriff’s Office is contacted by the attorney on the writ, by court order, or at the Sheriff’s discretion.
• After the sale, the Sheriff files a schedule of distribution, and any balance beyond what’s paid out under it goes to the homeowner.
• Once the Sheriff’s deed is issued, the buyer becomes the owner. If the property is occupied, the new owner must start a court ejectment process.

Your options if you’re behind on your mortgage

Talk to your servicer about a loan modification

The CFPB recommends calling your mortgage servicer right away and asking about options such as a loan modification, a repayment plan, forbearance, or refinancing (CFPB). A loan modification changes your loan terms and may lower your monthly payment, for example by extending the term or reducing the interest rate. Make sure you understand how it changes what you’ll owe (CFPB).

Ask about City assistance

The City’s Division of Housing and Community Development offers a Mortgage Retention Grant for income-eligible homeowners who have fallen behind and can keep up with payments afterward (City of Philadelphia). A housing counselor can help you apply.

Sell before the sheriff sale

If keeping the house isn’t realistic, selling before the sale is one option. The Act 91 Notice itself lists selling or transferring the property as a way to avoid foreclosure. In a typical sale, your mortgage payoff and other liens are paid at settlement, and anything left over goes to you. If you owe more than the house is worth, ask your servicer and a counselor about a short sale, which the CFPB lists as one option a servicer might offer.

Watch out for foreclosure rescue scams

The CFPB lists warning signs, including being asked to pay upfront, guarantees that you won’t lose your home, being told to stop paying your mortgage, and being asked to sign over the title to your home or sign documents you don’t understand (CFPB). If you sell your house to anyone, including us, get a written offer, close through a normal settlement, and have an attorney or counselor review anything you’re unsure about.

How a fast cash sale can help

When the numbers don’t work for keeping the house, a direct cash sale can give you a firm timeline. Here’s how it works with us (full details on How We Buy Houses):

• We buy as-is, with no repairs.
• We pay the settlement costs.
• We can help with moving costs when needed.
• We can close within 7 days of clear title, and most sales close within 30 days from start to finish.

We buy throughout Philadelphia and in nearby Pennsylvania, New Jersey, and Delaware counties. Our Stop Foreclosure page explains more.

Nick was amazing to work with! Process was very smooth and quick. I definitely recommend selling a home to him!

Ewens Lizima, Google review

Philadelphia foreclosure FAQ

What is an Act 91 notice?

It’s a notice Pennsylvania law requires mortgage lenders to send to homeowners facing foreclosure. It explains HEMAP, PHFA’s emergency mortgage assistance program. To apply, you must meet with a HEMAP-approved counseling agency within 33 days of the date of the notice.

What is the Philadelphia Mortgage Foreclosure Diversion Program?

It’s a Court of Common Pleas program that requires a conciliation conference before an owner-occupied residential property can be sold at sheriff sale in a mortgage foreclosure. Homeowners are directed to call the Save Your Home Philly Hotline at (215) 334-4663 and work with a housing counselor.

Where are Philadelphia sheriff sales held?

The Philadelphia Sheriff’s Office holds them as online auctions through Bid4Assets. You can check a property’s sale date and status on the Sheriff’s website.

Can I still keep my house after a sheriff sale is scheduled?

Possibly. The Act 91 Notice says you may cure the default up to one hour before a sheriff’s sale, up to three times in a calendar year. Call the Save Your Home Philly Hotline or a HUD-approved housing counselor as early as you can.

Can I sell my house if it’s in foreclosure?

Selling before the sheriff sale is one option. Your mortgage payoff and other liens are paid at settlement. If you owe more than the house is worth, ask your servicer and a housing counselor about a short sale. We pay the settlement costs and can close within 7 days of clear title.

This article is general information, not legal or financial advice. Talk to an attorney or a HUD-approved housing counselor about your situation. Program details were checked on November 2, 2026, from the official sources linked above, and they can change.

Talk to us about your options

If you’ve talked with a counselor and want to know what a sale could look like, call (215) 792-3189 or request a no-obligation offer online. You can also learn more about me.

Related pages

• Stop foreclosure · How we buy houses · Get a cash offer
• We buy houses in Philadelphia · All areas we serve