PA Underwriting Summary - Revision history

Josephdebarberie: /* Foreclosure Review */

2021-10-26T20:07:11Z

‎Foreclosure Review

Josephdebarberie at 14:27, 26 October 2021

2021-10-26T14:27:26Z

Josephdebarberie: /* Time Limitations */

2021-10-21T19:41:55Z

‎Time Limitations

Alanfields: /* Search/Exam */

2021-10-01T18:48:44Z

‎Search/Exam

Alanfields: /* Search/Exam */

2021-10-01T18:47:54Z

‎Search/Exam

Davidjenkins: /* Foreclosure Review */

2018-01-30T22:05:20Z

‎Foreclosure Review

Davidjenkins: /* Foreclosure Review */

2017-11-21T18:40:47Z

‎Foreclosure Review

Davidjenkins: /* Instrument Requirements */

2017-11-10T14:40:54Z

‎Instrument Requirements

Davidjenkins: /* Instrument Requirements */

2017-11-10T14:34:54Z

‎Instrument Requirements

Davidjenkins: /* Foreclosure Review */

2017-11-10T02:49:08Z

‎Foreclosure Review

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 ==Foreclosure Review==
-* Mortgages are the only form of security instrument recognized in Pennsylvania.
+See [[Foreclosures in Pennsylvania]]
 ==Instrument Requirements==

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 ** NOTE: This list does not cover all of the requirements to ensure a valid foreclosure, but the basics that should be reviewed by a title examiner.
 * Foreclosure is commenced with a Complaint filed at the county level in the Court of Common Pleas.
-** The Complaint must name as party defendants any parties liable under the note, any parties in title to the property at the time of foreclosure (if different than the makers of the note), and any other occupants of the property including tenants.
+** The Complaint must name as party defendants any parties who signed the mortgage as mortgagors and the record or real owners of the property. If the mortgagor is deceased, the personal representative, heir or devisee of the deceased party must be named. A mortgagor that is no longer a record owner may be left out as a defendant if the appropriate language is included in the Complaint releasing such person from liability. See [https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/231/chapter1000/s1144.html&d=reduce Pa. Rule of Civil Procedure 1144].
 ** The Complaint must name the IRS/USA or any branch of the federal government required to be named as a party defendant per federal law.
 ** Other junior lien holders do not need to be named as party defendants but must be served with notice of the foreclosure and sale (see below).

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 *Unemployment Comp Liens -- No expiration, attach to after acquired property.   43 P.S. 788.1.1
 *Estate Tax Lien -- Federal 10 years
-*State Inheritance Tax Liens -- 20 Years
+*State Inheritance Tax Liens -- 20 Years, 9 months (if an Estate was opened and the Property was reported '''or''' there are bonafide purchasers of the property). No expiration if an actual lien is filed. See [[Inheritance Taxes in Pennsylvania]]
 *Mechanics Liens -- 2 years-unless action to foreclose commenced
 *Financing Statements -- 5 years

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 * Survey Requirements  -- No
 * UPL Hot Button Issues -- No
 ==UPL==

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 * Survey Requirements  -- No
 * UPL Hot Button Issues -- No
 ==UPL==

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 * Mortgages are the only form of security instrument recognized in Pennsylvania.
 * Mortgages must be foreclosed judicially.
-* Judicial foreclosure of mortgage in Pennsylvania differs in several ways from judicial foreclosure in other states.
+* Judicial foreclosure of mortgages in Pennsylvania differs in several ways from judicial foreclosure in other states.
 * Review of a judicial foreclosure requires review of the docket of the foreclosure action and some of the filings.  Key documents are:
 ** The court docket

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 ** Other junior lien holders do not need to be named as party defendants but must be served with notice of the foreclosure and sale (see below).
 ** Senior liens cannot be discharged in a foreclosure.
-* Note that no Lis Pendens document is filed in the public records and Pennsylvania does not recognize the common law Doctrine of Lis Pendens.
+* Note that no Lis Pendens document is filed in the public records for a foreclosure even though it is commonly done with other lawsuits affecting real property in Pennsylvania.   Any Lis Pendens filed in a foreclosure action will not have any effect on third parties.
 ** Liens filed by other junior lien holders after the Complaint will still attach to the property.
 ** Foreclosure attorneys will need to obtain updated foreclosure searches in order to serve additional parties until the Writ of Execution is filed in the case.

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 ==Instrument Requirements==
-* Each county is different in the way it implements the written and unwritten rules of recording.  Most county recorder of deeds publish their formatting and content requirements on their office's web site.  What follows below applies to most counties, but nearly every rule has at least one county that is an exception.  '''It is highly recommended to consult a county's recorder of deeds web site prior to even <u>drafting</u> a document to ensure that it will conform to that county's recording requirements.'''
+* Each county is different in the way it implements the written and unwritten rules of recording.  Most county recorder of deeds publish their formatting and content requirements on their office's web site.  What follows below applies to most counties, but nearly every rule has at least one county that is an exception.  '''It is highly recommended to consult the county's recorder of deeds web site where your subject property is located prior to even <u>drafting</u> a document to ensure that it will conform to that county's recording requirements.'''
 * Documents be submitted on letter size (8.5" x 11") paper.
 * Print may only be on one side of each page.

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 * Mortgages must be foreclosed judicially.
 * Judicial foreclosure of mortgage in Pennsylvania differs in several ways from judicial foreclosure in other states.
-* Review of a judicial foreclosure requires review of the docket of the foreclosure action and several of the filings.
+* Review of a judicial foreclosure requires review of the docket of the foreclosure action and some of the filings.  Key documents are:
-* NOTE: This list does not cover all of the requirements, but the basics that should be reviewed by a title examiner.
+** The court docket
 * Foreclosure is commenced with a Complaint filed at the county level in the Court of Common Pleas.
 ** The Complaint must name as party defendants any parties liable under the note, any parties in title to the property at the time of foreclosure (if different than the makers of the note), and any other occupants of the property including tenants.
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 * Note that no Lis Pendens document is filed in the public records and Pennsylvania does not recognize the common law Doctrine of Lis Pendens.
 ** Liens filed by other junior lien holders after the Complaint will still attach to the property.
-** Foreclosure attorneys will need to obtain update foreclosure searches in order to serve additional parties until the Writ of Execution is filed in the case.
+** Foreclosure attorneys will need to obtain updated foreclosure searches in order to serve additional parties until the Writ of Execution is filed in the case.
 ** Once the Writ of Execution has been filed, any junior lien holders filing after that date are not entitled to service of any notices.
 * Initial service on any party defendants must be done personally unless otherwise allowed by the rules of civil procedure.
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 * Service on any junior lien holders who are not party defendants must be by certified mail.
 ** Service is typically handled by the foreclosure attorney.
-** Service can be verified by reviewing the "3129 Affidavit" filed by the foreclosure attorney which usually includes copies of the certified mail receipts.
+** Service can be verified by reviewing the 3129 Affidavit filed by the foreclosure attorney which usually includes copies of the certified mail receipts.
-** There may be multiple "3129 Affidavits" in each case file due to junior liens being filed against the property prior to the Writ of Execution (see above).
+** There may be multiple 3129 Affidavits in each case file due to junior liens being filed against the property prior to the Writ of Execution (see above).
 * Failure to name and serve any party defendants may invalidate the foreclosure.
 * Failure to serve any junior lien holders will result in their liens surviving the foreclosure.
-* NOTE ON 3129 AFFIDAVITS:  The Rules of Civil Procedure require notice on all junior lien holders including for liens that cannot be discharged by foreclosure such as real property taxes.  As a result, the "3129 Affidavit" will show service on these parties.  Do not assume that because a party was given service in the foreclosure does not mean that there lien will be discharged at the conclusion of the foreclosure.  In an abundance caution, many foreclosure firms will name all governmental and other entities that could potentially have liens on the property in order to avoid having to add them later or inadvertently missing them because they were note found in a title search.  Do not be surprised to see names of entities that do not have any liens showing in the public records.
+* NOTE ON 3129 AFFIDAVITS:  The Rules of Civil Procedure require notice on all junior lien holders including for liens that cannot be discharged by foreclosure such as real property taxes.  As a result, the 3129 Affidavit must show service on these parties.  Do not assume that because a party was given service in the foreclosure that the lien will be discharged at the conclusion of the foreclosure.  Also, in an abundance caution, many foreclosure firms will name all governmental and other entities that could potentially have liens on the property even if no liens are found in a title search.   Do no be surprised to find service on several branches of state and local government that do not have any liens of record.
 * Once a Judgment of Foreclosure has been entered by the court, a Writ of Execution can be issued.
 * Once the Writ of Execution has been issued, the property can be schedule for Sheriff Sale.
-* Properties are sold publicly at Sheriff Sale publicly in the county courthouse each month.  Anyone may bid including the "attorney on the writ" who represents the foreclosing lender.
+* Properties are sold publicly at Sheriff Sale in the county courthouse each month.  Anyone may bid including the "attorney on the writ" who represents the foreclosing lender.
 * There is no right of redemption in any parties once the sale has been completed except for those given for federal liens.
 * Once the sale is finalized, the Sheriff's office will prepare a deed, sometimes called a "Deed Poll" to convey the property to the winning bidder.
 * Title becomes vested in the purchaser at the foreclosure sale when the Sheriff's Deed is recorded.  This may take several months in some counties.
-* Actions to eject holdover tenants including the foreclosed borrowers must be pursued in a separate action from the foreclosure.  The civil court record (Prothonotary) indexes must be checked even after foreclosure has been completed to ensure that there are no pending ejection actions.
+* Actions to eject holdover tenants including the foreclosed borrowers must be pursued in a separate action from the foreclosure.  The civil court records in the Prothonotary or its equivalent must be checked even after foreclosure has been completed to ensure that there are no pending ejectment actions.
 ==Instrument Requirements==