PITTSBURGH — Foreclosure rates in Pittsburgh recorded a 162% increase year-over-year, placing the city among the highest in the nation. The surge in foreclosure threats has left hundreds of property owners across Allegheny County searching for financial relief.
Real estate professionals report fielding an increasing number of inquiries from homeowners seeking to sell quickly before facing property loss. Hardships stem from a variety of financial pressures.
Mark Schinzel, a real estate consultant and founder of the company We Buy Property, LLC, noted that changing economic conditions are driving the spike in inquiries.
“The cost of living, job loss, a lot of different things, including local taxes going up significantly over the past couple of years,” Schinzel said.
Kellie Schork and her husband, Scott Schork, raised four children in their White Oak home, where they planned to retire. Almost a year ago, they received notice of a lien and foreclosure threat regarding a debt consolidation loan they thought had been settled years earlier. With outstanding principal, interest and legal fees, the amount totaled over $48,000.
“We didn’t know where we were going to come up with that amount of money,” said Kellie.
Financial experts advise homeowners facing hardship not to ignore the issue and to contact their lender to review available options. Homeowners can ask lenders to temporarily pause or reduce payments, establish a mortgage repayment plan to spread missed payments over installments following short-term setbacks like medical emergencies, or apply for a loan modification to adjust loan terms and lower monthly rates.
To address their situation, the Schorks sought help through the “Save Your Home” program, which is administered by the Allegheny County Sheriff’s Department. The initiative halts legal action against properties while homeowners work out payment arrangements.
“It stops all the foreclosure proceedings, so you don’t have the stress of the bank while you’re trying to figure out a solution,” Schork said. Describing the toll of the ordeal, she said, “It’s extremely stressful when you feel the loss of your security, you know, your home.”
The program gave the couple the necessary time to find the funds to pay their lender, ultimately saving their home.
To reach the “Save Your Home” Hotline, call 1-866-298-8020.
The Allegheny County Sheriff’s Office also lists other local resources for homeowners on their website.
Click here for additional resources.
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