Facing Foreclosure · Philadelphia, PA

Facing Foreclosure on a Philadelphia Home: Your Options

Philadelphia's court runs a Residential Mortgage Foreclosure Diversion Program. When a lender files a foreclosure case and says the home is residential and owner-occupied, a conciliation conference is scheduled. If you think your case should have been included, you can file a certification and ask for one. For many owners this is the first chance to talk to the lender's attorney face to face. Bring the paperwork you have, because the lender's attorney will be working from a file.

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Modest New Jersey split-level during a mortgage foreclosure

If you decide selling beats the alternatives, Kaizen Home Buyers can buy for cash, as-is. You make no repairs and pay no agent commission, and the offer arrives within 24 hours. Closing takes 14 to 30 days or happens on your date. We cannot stop a case and we do not give legal advice, so see a housing counselor or foreclosure attorney first. The hotline counselor can also tell you what the lender needs to see before any workout.

What’s different in Philadelphia

The Thursday conference

Conciliation conferences are held every Thursday in Courtroom 676 of City Hall, with sessions at 9:00 A.M. and 1:00 P.M. Homeowners meet lender attorneys to talk about workout options. The court points owners to the Save Your Home Philly Hotline before the conference, where a housing counselor gives free advice on retention options and paperwork. Legal help is listed from Community Legal Services, Philadelphia Legal Assistance and SeniorLAW Center. A counselor can help you prepare the paperwork the lender will ask about, so the conference is not your first look at it.

Money and counseling from the city

The city's program offers housing counseling and legal aid for mortgage or tax foreclosure. The hotline number is (215) 334-4663. A separate Foreclosure Prevention Grant Program offers up to $5,000 to homeowners who are three or more months behind on the mortgage. Ask a counselor whether you qualify, because a catch-up grant may change whether selling is necessary. The grant is for catching up on missed payments, so it fits owners who can keep the loan current afterward. If you cannot, ask the counselor what that means for selling.

Act 91 and the 33-day window

The Pennsylvania Housing Finance Agency tells homeowners to contact the servicer and a housing counselor as soon as possible. It says a timely HEMAP application, within 33 days of an Act 91 notice, can pause further lender action while the application stays timely. Philadelphia describes a sheriff's sale as a public auction of the property. Read each notice for its date. The dates on your notices matter more than any calendar we could publish. Keep each envelope and note the day it arrived.

Checklist before you sell

  • The Act 91 notice and every letter from the servicer
  • The foreclosure complaint and docket number, if you were served
  • Notice of your conciliation conference date
  • A recent mortgage statement and payoff request
  • The deed and any second mortgage or lien paperwork
  • Name of your housing counselor or attorney
  • Photos and a list of repairs the house needs

How Kaizen can help

If you choose to sell, send the address and your timeline. We look at the home as it stands and give a cash offer. A rowhome with deferred repairs does not need work first. You can compare our number with the mortgage payoff, the 4.578 percent Philadelphia transfer tax and what an agent says the house could net. We do not promise to beat a mortgage payoff. If the number does not cover what is owed, tell your counselor and attorney before you sign.

Accepting an offer does not stop the foreclosure. The lender's attorney, the court or the sheriff must confirm any change. Keep going to the conference and answering every notice. We can aim for a closing date that fits your case calendar. If a conference or court date falls inside our timeline, we plan around it instead of asking you to skip it. Call or text Kaizen Home Buyers at 267-329-0084.

Facing Foreclosure in Philadelphia: questions

What happens at the diversion conference?

Homeowners meet lender attorneys to discuss workout options for the mortgage delinquency. A judge pro tem can be requested to help. A counselor from the hotline can help you prepare.

Do I have to live in the house to take part?

The program applies to residential owner-occupied property. If you do not live there, ask the hotline or an attorney what other options exist.

Will a cash offer stop the foreclosure?

No. A contract does not change the case. The lender, court or sheriff has to confirm a postponement or payoff in writing.

How much equity could I have?

Equity is the sale price minus the payoff and costs. Our cash offer is below retail, because we price repairs and risk. Get a payoff figure first, then compare.

Keep reading

We buy houses in PhiladelphiaFacing Foreclosure: full guideHow to Sell an Inherited House in Philadelphia County (Probate Guide)Facing Foreclosure in Philadelphia County: Diversion Program and Sheriff Sale GuideSelling an Inherited House in PhiladelphiaSelling a Philadelphia House With L&I Code ViolationsSelling a Philadelphia House With Back Property TaxesFacing Foreclosure in Upper Darby: Your OptionsFacing Foreclosure in Chester, PA: Your OptionsFacing Foreclosure in Norristown: Your OptionsFacing Foreclosure in Abington Township: Your OptionsFacing Foreclosure in Plymouth Meeting: Your OptionsFacing Foreclosure in Levittown, PA: Your Options

Sources

General information, not legal or tax advice. Rules change; confirm details with the office or a professional.

  1. Kaizen process steps (Kaizen Home Buyers, 2026-10-23)
  2. Information on Foreclosure Prevention (Pennsylvania Housing Finance Agency, 2026-07)
  3. Residential Mortgage Foreclosure Diversion Program (First Judicial District of Pennsylvania, 2026-10)
  4. Save your home from mortgage and tax foreclosure (City of Philadelphia, 2026-10)
  5. Sheriff and lien sales (City of Philadelphia, 2026-10)
  6. Philly's realty transfer tax rate is now 4.578% (City of Philadelphia, 2025-07-28)

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