Due to increased property foreclosures, Lancaster County has developed a new Residential Mortgage Foreclosure Diversion Program (RMFD). The Program gives a separate pathway that residential mortgage foreclosures need to follow. Hopefully, the RMFD will allow homeowners to work out mortgage defaults without losing their homes through foreclosure. If so, the RMFD has the added bonus of taking some foreclosure cases out of the Court’s schedule.
A homeowner with a mortgage in default is eligible for the program if the home:
- is owner-occupied
- is the owner’s primary residence
- is part of a building with four or fewer residential units
- has a remaining balance on the Mortgage of $400,000 or less
- is not part of any bankruptcy, divorce or estate proceedings