PNC Foreclosure fees and process


LoanSafe Member
Nov 20, 2013

I lost my job in January 2018 and stopped paying my 1st and 2nd mortgage. I got ahead of this and told the bank I was going to sell the house and applied for hardship. They gave me 6 months and didn't bother me and held off any foreclosure stuff. We spent savings fixing up the house, thought we had an offer in May, it dragged out, and in the end they changed their mind. So no sale and my "grace period" is up.

Good news is I finally secured a good job, getting ready to start at the end of July. We want to stay in the house and are re-applying for assistance under the new circumstances (income).

When the original "file" (PNC terminology) expired July 1st I was told to re-submit. I have no savings other than 401k to immediately try and catch up on my back payments. within a week I also got letters from a law firm re: foreclosure, but no sale date had been set.

My questions and concerns:
1. Legal Fees: I would like to avoid this, but it appears the firm has been engaged and I will be on the hook. The letter I got was basically auto-generated, so I can't believe any real work has been done. Even still, I am sure they will find a way to stick me with 1000s of $$ of fees for this.
2. Timeline. I want to get approval for a modified loan. how long does it take usually?
3. I could "catch up" on my back payments using 401k money to get out of the foreclosure I am in, wondering if doing this will save me legal fees at this stage. the timing of the new job, the end of my first grace period to sell, foreclosure process, now a law firm engaged has the timing of this on the hairy edge.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Hi Lancer,
I can't say whether or not the legal fees will be waived, they could be if you tell them you're willing to pay the entire past due to current. The question you want to ask yourself is - are you going to inevitably fall into default again even after pulling funds from your 401k? You can always get a loan against your 401K and avoid the tax consequences of pulling a withdrawal.

I would suggest contacting your servicer and asking them for forgiveness of legal fees if they have been assessed. If you owe more than the home is worth maybe it's best to let it go into foreclosure and purchase a new home through one of our programs 1 day out of foreclosure. Many different things to think about in this case....