New Law for Pennsylvania Foreclosure Homes

Pennsylvania foreclosure homes saw a new high on 25th of this month with 10,407 properties listed in some stage of foreclosure activity in the second quarter of this year. As reported by RealtyTrac, Irvine based real estate data Collection Company; foreclosures in Pennsylvania ranked 31 amongst the states as far as the rate is concerned with one out of every 524 households facing foreclosures. Pennsylvania foreclosures have increased by 76.36% from the first quarter this year and 62.76% from the same period last year.

The June reports for foreclosures in Pennsylvania are even more shocking. There has been an 80% increase in number of monthly payment defaulters here when compared to June 2007. The number of payment default notices, auctions and bank owned homes of the Pennsylvania foreclosure homes has increased substantially and have caused a great concern amongst the government departments.

Lot of amendments has been made by the governor Mr. Ed Rendell to reduce the number of foreclosure homes in Pennsylvania even before the RealtyTrac report was released. Five bills have been passed by the governor to protect the homeowners from mortgage malpractices. The money lenders and home lenders will have to adhere to strict rules and regulations and will have to give maximum information to the homeowners.

To reduce the Pennsylvania foreclosures, the bill makes it mandatory for all mortgage brokers to undergo training and must be licensed by the state government before they start working. There have been cases here in which the money lenders have inflated the prices of the homes and took undue advantage of the homeowner’s ignorance. The law now can impose a cash fine up to $10,000 if the money lenders or mortgage brokers are found guilty by the Attorney General and the Banking Department.

The provisions in the law really create an impression of protecting the residents from losing their homes to Pennsylvania foreclosure homes. Now the homeowners will also be allowed to check the bank records to see what kind of penalties and fines were imposed on them. This wasn’t allowed in the previous law.

There is another regulation in the pipe line, which says that the mortgage companies will have to prove that the borrower can really pay back the loan. This will reduce future increase in Pennsylvania foreclosures.

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