HomeMy WebLinkAbout13-3281 Supreme CoupfofXennsylvania
Cour
For Prothonota Use On ly:
o�Ctimmo`Pleas y y:
C`il'C�V r Slleet Docket No:
CUM6RLANb County
f'
The irtforntation collected on this form is used solely for court administration purposes. This form does not
supplement or replace the filing and service of pleadings or other papers as required by lain or rules of court.
Commencement of Action:
S El Complaint 0 Writ of Summons 0 Petition
Q Transfer from Another Jurisdiction Declaration of Taking
E Lead Plaintiff's Name: Lead Defendant's Name:
C Elizabeth S. Voeas Ross E. Gahagan
T Dollar Amount Requested: R within arbitration limits
I Are money damages requested? Yes 0 No (check one) Ooutside arbitration limits
O
N Is this a Class Action Suit? ( Yes 0 No Is this an MDJAppeal? 0 Yes El No
A Name of Plaintiff /Appellant's Attorney: Christopher E. Rice, Esquire /Martson Law Offices
0 Check here if you have no attorney (are a Self - Represented IPro Sel Litigant)
Nature of the Case Place an "X" to the left of the ONE case category that most accurately describes your
PRIMARY CASE. If you are making more than one type of claim, check the one that
you consider most important.
TORT (do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS
0 Intentional 0 Buyer Plaintiff Administrative Agencies
0 Malicious Prosecution Debt Collection: Credit Card 0 Board of Assessment
0 Motor Vehicle 0 Debt Collection: Other 0 Board of Elections
0 Nuisance 0 Dept. of Transportation
0 Premises Liability 0 Statutory Appeal: Other
S 1 Product Liability (does not include
E nzass tort) Employment Dispute:
Discrimination
C F-1 O ther: her: Libel/ Defamation 0 Employment Dispute: Other 0 Zoning Board
O
Other:
T
j Q Other:
O MASS TORT
0 Asbestos
N 0 Tobacco
0 Toxic Tort - DES
[J Toxic Tort - Implant REAL PROPERTY MISCELLANEOUS
0 Toxic Waste 0 Ejectment ! Common Law /Statutory Arbitration
B 0 Other: Eminent Domain /Condemnation 0 Declaratory Judgment
Ground Rent Mandamus
Q Landlord/Tenant Dispute E_i Non- Domestic Relations
0 Mortgage Foreclosure: Residential Restraining Order
PROFESSIONAL LIABLITY 0 Mortgage Foreclosure: Commercial 0 Quo Warranto
0 Dental Partition 0 Replevin
0 Legal Quiet Title 0 Other:
0 Medical Other:
Other Professional:
Updated 1/112011
C T'IE t' OT f ;0110 A "i `tf
1;,I3 JUN -7 AN II. 47
Christopher E. Rice, Esquire C UM CS E i Z L A N D C 0 U;NI T Y
I.D. No. 990916 L N fr S Y LVA.'1 A
MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
(717) 243 -3341
Attorneys for Plaintiff
ELIZABETH S. VORAS, : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
V. : No. 13- CIVIL TERM
ROSS E. GAHAGAN,
Defendant : IN EJECTMENT
NOTICE
You have been sued in court. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this Complaint and Notice are
served, by entering a written appearance personally or by attorney and filing in writing with the court
your defenses or objections to the claims set forth against you. You are warned that if you fail to do
so, the case may proceed without you and a judgment may be entered against you by the court
without further notice for any money claimed in the Complaint or for any other claim or relief
requested by the Plaintiffs. You may lose money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT
HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS
OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO
PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL
SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE:
Cumberland County Bar Association
32 South Bedford Street
Carlisle, PA 17013
(717) 249 -3166
Christopher E. Rice, Esquire
I.D. No. 990916
MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
(717) 243 -3341
Attorneys for Plaintiff
ELIZABETH S. VORAS, : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
V. :No. 13- CIVIL TERM
ROSS E. GAHAGAN,
Defendant : IN EJECTMENT
COMPLAINT
AND NOW, comes the Plaintiff, Elizabeth S. Voras, by and through her attorneys,
MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, and hereby avers the
following:
1. Plaintiff, Elizabeth S. Voras, in an adult individual whose place of residence is 1009
Huntington Lane Elizabethtown, Lancaster County, Pennsylvania, 17022.
2. Defendant, Ross E. Gahagan, is an adult individual residing at 1708 Anna Street, New
Cumberland, Cumberland County, Pennsylvania.
COUNT I - BREACH OF CONTRACT
3. Paragraphs 1 and 2 are incorporated herein by reference as if fully set forth herein.
4. Plaintiff is the fee simple owner of Property located at 1708 Anna Street, New
Cumberland, Cumberland County, Pennsylvania (the "Property ") as recorded in the Office of
Recorder of Deeds in Cumberland County, Pennsylvania, at Instrument No: 200829342. A true and
correct copy of the deed for the Property is attached hereto as Exhibit "A," which sets forth the
complete legal description of the Property.
0
5. On August 27, 2009, Plaintiff and Defendant entered into a written agreement of sale
regarding the Property (the "Agreement "). A true and correct copy of the Agreement is attached
hereto as Exhibit `B ".
6. Pursuant to the terms of the Agreement, Defendant agreed to purchase the Property
and paid $7,000.00 upon the execution of the Agreement, along with interim monthly payments of
$1,365.50 on the balance of $200,00.00 with the first payment due on October 1, 2009.
7. Per the Agreement, on the last day of October, 2011, Defendant agreed to pay the
remaining balance of $194,215.36.
8. Defendant was permitted to take possession of the Property upon the execution of the
Agreement.
9. On October 27, 2011, Plaintiff and Defendant signed an addendum to the Agreement
(the "Addendum "), in which Defendant agreed to extend the payment terms through April 30, 2013,
and pay a new monthly payment to $1,393.80, due to increases in taxes and insurance. A true and
correct copy of the Addendum and payment schedule are attached hereto as Exhibit "C ".
10. In the Addendum, Defendant agreed to pay the final balloon payment of $189,621.00
on or before April 30, 2013.
11. Pursuant to Paragraph 2 of the Agreement, Defendant agreed to pay a late charge of
$100.00 for any monthly payment received by Plaintiff after the tenth (10f ") day of the month.
12. Pursuant to Paragraph 4 of the Agreement, Defendant agreed to pay all utilities for
the property, including, but not limited to electric, water, sewer and trash and oil or gas.
13. As per Paragraph 5 of the Agreement, delivery of deed was not to occur unless and
until Defendant made payments of all amounts due hereunder to Plaintiff.
14. Defendant last made a monthly payment on February 10, 2013.
15. Defendant has failed to make the monthly payments for March and April, 2013.
16. Per diem payments for April 1 through April 30, 2013 of $870.00 and final balloon
payment of $189,621.00 were not tendered by Defendant and to this date remain unpaid.
17. Required monthly payment total due from Defendant to Plaintiff is $5,272.60,
consisting of:
a. March 1 (plus $100 late penalty) $1,493.80;
b. April 1 (plus $ 100 late penalty) $1,493.80;
C. Payment for April 1-30,2013 (accrued at $29 /day) $870.00 plus $258.00 for
taxes /insurance; and
d. Additional payment for May l -31, 2013 (accrued at $29 /day) $899.00 plus
$258.00 for taxes /insurance.
18. Further, Defendant is in arrears in the payments due New Cumberland Borough for
sewer and trash to the amount of $261.80, which Defendant is obligated to pay. A copy of the
customer bill report from the Borough is attached as Exhibit "D ".
19. On April 1, 2013 Plaintiff sent a notice of default (the "Notice "), certified, pursuant
to Paragraph 20 of the Agreement, to both the Defendant and the Defendant's attorney. A true and
correct copy of the Notice is attached hereto as Exhibit "E ".
20. The Notice contained a termination provision and demand to vacate if default was
not cured within the 30 days as per Paragraph 21 of the Agreement.
21. The Notice was received on April 8, 2013, and April 4, 2013, respectively, by
Defendant and his attorney. A true and correct copy of the Certified Mail Receipts are attached
hereto as Exhibit "F ".
22. As of May 8, 2013, being the expiration date of the termination provision within the
Notice, Defendant has failed to vacate the Property or pay the outstanding balance owed to Plaintiff
under the Agreement.
23. Defendant is wrongfully in possession of the Property.
WHEREFORE, Plaintiffs request that this Honorable Court grant the following relief:
a. Declare the Agreement and Addendum to be terminated, award possession of the
Property to Plaintiff, and eject Defendant from the Property immediately; and
b. Award Plaintiff all outstanding balances due under the Agreement, including;
i. The unpaid balance of late fees;
ii. The costs of unpaid bills for sewer and trash;
iii. Interest; and
iv. Costs of suit.
COUNT II - UNJUST ENRICHMENT
24. Paragraphs 1- 23 are incorporated herein by reference as if fully set forth herein.
25. As of the date of this filing, Defendant owes Plaintiff $5,534.40.
26. Said damages are continuing in nature and Plaintiff reserves the right to seek the
amount of damages accrued up to the date of trial, including but not limited to, loss of potential rent
and ability to sell.
26. Plaintiff has reason to believe that defendant has caused damage beyond ordinary
wear and tear to the Property and Plaintiff demands the reasonable cost of placing the Property in
the same condition as it was at the time of entry into the Agreement with Defendant, as per
Paragraph 21 of the Agreement.
WHEREFORE, Plaintiff respectfully requests that this court enter judgment in favor of
Plaintiff and against Defendant, Ross E. Gahagan, for money damages in an amount not in excess
of $50,000.00, plus costs and interest, in addition to all other remedies the Court deems just in law
and equity.
MARTSON LAW OFFICES
By 2ZA r
Christopher E. Rice, Esquire
Attorney I.D. No. 90916
10 East High Street
Carlisle, PA 17013
(717) 243 -3341
Date: —7- /3 Attorneys for Plaintiff
EXHIBIT "A"
Parcel No. 26 -23- 0543 -335
THIS DEED,
MADE THE ZZ' day of in the year
of our Lord two thousand and eight (2008)
BETWEEN JOSEPH M. YOUCH and PAMELA M. YOUCH, his wife, of New
Cumberland, Pennsylvania,
Grantors,
and ELIZABETH VORAS, adult individual, of Elizabethtown,
Pennsylvania,
Grantee,
WITNESSETH, that in consideration of
-- -Two Hundred Three Thousand (5203,000.00)--- - - - - -- Dollars
in hand paid the receipt whereof is hereby acknowledged, the said
grantors do hereby grant and convey to the grantee,
ALL THAT CERTAIN piece or parcel of land situate in the Borough of New
Cumberland, Cumberland County, Pennsylvania, more particularly bounded
and described as follows:
BEGINNING at a point on the western side of Anna Street, two hundred
(200) feet north of the northwest corner of Anna and Bailey Street, at
the division line between Lots Nos. 68 and 69 on Plan hereinafter
mentioned; thence westwardly by said division line, at right angles to
Anna Street, one hundred fifty (150) feet to a twenty (20) foot wide
public alley; thence northwardly by the eastern line of said public
alley, fifty (50) feet to the division lines between Lots Nos. 67 and
68, on plan hereinafter mentioned; thence eastwardly by said division
line, at right angles to Anna Street, one hundred fifty (150) feet to
Anna Street; thence southwardly by the western line of Anna Street fifty
(50) feet to the place of BEGINNING.
BEING Lot No. 68, Plan of Haldeman Plot, recorded in the Cumberland
County Recorder's Office in Plan Book No. 2, Page 48.
BEING the same premises which Joseph M. Youch and Pamela M. Youch, his
wife, by deed dated November 30, 2007 and recorded in the Cumberland
County Recorder of Deeds Office in Book , )Page , granted and
conveyed unto Pamela M. Youch. Joseph M. Youch enters into the within
deed to grant and convey his interest in the premises by being the
spouse of Pamela M. Youch.
AND the said grantors hereby covenant and agree that they will warrant
specially the property hereby conveyed.
IN WITNESS WHEREOF, said grantors have hereunto set their hand and
seal the day and year first above written.
Signed, Sealed and Delivered
in the Presence of
/t* OS H CH
M
PAMELA M. YOUCH
State /Commonwealth of P►�
County of b, tJtA C,�"�' ((a�ss.
On this, the a,"'c�- day of A &" , 2008, before me,
the undersigned officer, personally appeared Joseph M. Youch and Pamela
M. Youch, his wife, known to me (or satisfactorily proven) to be the
persons whose names are subscribed to the within instrument, and
acknowledged that they executed same for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Camp: ''! ^rnr., Cumr,�:.... , :� ::•,:.�,r
Fd�yComr,, "�: �:r ..,... o Notary Public
h ,,...... r.
Title of Officer
State /Commonwealth of
County of
On this, the day of 2008, before me,
the undersigned officer, personally appeared
known to me (or satisfactorily proven) to be the person whose name
subscribed to the within instrument, and acknowledged that
executed same for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public
Title of Officer.
do hereby certify that the precise residence and complete
post office address of the within named grantee is
17 0 7 A
NP.�/ �� � �� A-- - ?o 70
Attorney for
COMMONWEALTH OF PENNSYLVANIA
ss.
County of
RECORDED on this day of
A. D. 2008, in the Recorder's office of the said County, in Deed Book
Vol. , Page
Given under my hand and the seal of the said office, the date
above written.
Recorder.
ROBERT P. ZIEGLER
RECORDER OF DEEDS
CUMBERLAND COUNTY
1 COURTHOUSE SQUARE - 1 '
CARLISLE, PA 17013
717 - 240 -6370 =
Instrument Number - 200829342
Recorded On 8/28/2008 At 2:09:45 PM * Total Pages - 4
* Instrument Type - DEED
Invoice Number - 27967 User ID - JM
* Grantor - YOUCH, PAMELA M
* Grantee - VORAS, ELIZABETH
* Customer - REAQGER
* FEES
STATE TRANSFER TAX $2,030.00 Certification Page
STATE WRIT TAX $0.50
STATE JCS /ACCESS TO $10.00 DO NOT DETACH
JUSTICE
RECORDING FEES - $12.50
RECORDER OF DEEDS This page is now part
AFFORDABLE HOUSING $11.50 of this legal document.
COUNTY ARCHIVES FEE $2.00
ROD ARCHIVES FEE $3.00
WEST SHORE SCHOOL $1,015.00
DISTRICT
NEW CUMBERLAND $1,015.00
BOROUGH
TOTAL PAID $4,099.50
I Certify this to be recorded
in Cumberland County PA
4 O� ouMB�
° RECORDER O D EDS
f7ti0
* - Information denoted by an asterisk may change during
the verification process and may not be reflected on this page.
00101G
IN III I I II I I II I I
EXHIBIT "B"
U P Y SALES AGREEMENT
THIS AGREEMENT, made the 27 day of August, 2009, by and between
Elizabeth S Voras, party of the first part, hereinafter called
"Seller ", and Ross E Gahagan, party of the second part, hereinafter
called "Buyer ",
W I T N E S S E T H:
The parties hereto, intending to be legally bound, hereby promise,
declare and agree as follows:
1. PROPERTY DESCRIPTION, PURCHASE PRICE AND PAYMENT. Seller
agrees to sell and convey to Buyer and Buyer agrees to purchase all
of the real estate and improvements thereon known as 1708 Anna St,
New Cumberland, Cumberland County, Pennsylvania, for the purchase
price of two hundred and f ±v- e� thousand and N0 1100 (.$20;r,000) Dollars
to be paid as follows: 4�
a. Seven thousand dollars ($7,000), the receipt of which is
hereby acknowledged at or before the signing of this agreement.
b. The balance of two hundred thousand and N01100
($200,000) Dollars shall be amortized over 360 months (30 years)
from the date hereof and in the interim payments on account of
principal, together with interest thereon at the rate of 5.5% per
annum in monthly installments of one thousand, one hundred and
thirty five and 50/100 ($1,135.50) Dollars principal and interest),
together with two hundred and thirty and N0 1100 ($230) Dollars.
Total monthly payment including principle, interest, taxes and
r �G
insurance being one thousand, three hundred and sixty five and
50/100 ($1,365.50) Dollars, the first payment being due on October
1 st , 2009 and continuing on the same day of each month thereafter
until fully paid.
c. The remaining principle balance of one hundred and
ninety four thousand, two hundred and fifteen and 36/100
($194,215.36) Dollars shall be due on the last day of October, 2011.
Buyer may prepay any or all of the balance due hereunder at any time
after October, 2010 without penalty and in accordance with the
amortized payment schedule attached as exhibit A.
2. LATE CHARGE. Buyer agrees to pay a late charge of $100 for
any monthly payment received by the Seller more than ten (10) days
after the due date.
3. ASSIGNMENT. Buyer agrees not to assign Buyer's interest in
this agreement, whether by deed, articles of agreement, lease, lease
with option to purchase, or otherwise, unless the written consent of
Seller is obtained, which consent will not be unreasonably withheld,
and any such assignment or attempted assignment will cause the
entire balance due under this agreement to be immediately due and
payable at the option of the Seller.
4. TAXES, INSURANCES AND UTILITIES. Seller agrees to pay all
taxes and assessments levied upon the said premises from and after
the date hereof and to keep any building thereon insured for fire,
storm and casualty coverage with any reputable company licensed to
do business in Pennsylvania in the amount of at least two hundred
and twenty five thousand and NO 1100 ($225,000) Dollars payable to
2
1
the parties hereto as their interest may appear. Buyer agrees to
provide insurance for his personal property with any reputable
company licensed to do business in Pennsylvania. Buyer shall pay
all utilities for the property, including but not limited to
electric, water, sewer and trash, and oil or gas, commencing from
the first day of possession.
5. DELIVERY OF DEED. Upon the payment all amounts due
hereunder, Seller will, at the law offices of Stone LaFaver &
Shekletski, 414 Bridge Street, New Cumberland, Pennsylvania, make,
execute and deliver to Buyer a good and sufficient deed for the
proper conveying and assuring of the said premises in fee simple and
containing a covenant of special warranty. Seller hereby represents
and warrants to Buyer that: 1)Seller has good and marketable title
to the property as of the date hereof and that the only mortgage
against the property is None - No Mortgage . Should Seller be
unable to deliver to Buyer a good and sufficient deed for the proper
conveying and assuring of the said premises, Buyer may elect to have
the payments referenced in paragraph 1(a) and 1(b) above immediately
returned to him by Seller or to otherwise pursue any other remedy at
law or in equity available to Buyer. A true and correct copies of
the Seller's deed for the property is attached hereto and
incorporated by reference herein. Seller represents and warrants to
Buyer that they are not aware of any issues affecting title to the
property.
6. POSSESSION. Possession of the said premises is to be
delivered on August 28th, 2009 by Seller to Buyer. Seller will have
q l?lu 3 � �Ix-7 a 17
the right to occasionally inspect premises until such time as title
transfers by providing 48 hours notice to buyer.
7. PERSONAL PROPERTY. The sale includes whatever electric,
heating, plumbing, fixtures, systems and equipment including but not
limited to the following: refrigerator
and all other fixtures permanently affixed as attached to the
premises, and all shrubbery and landscaping.
8. REALTY TRANSFER TAXES. All realty transfer taxes in effect
at the time of settlement and delivery of the deed to the premises
as required in paragraph 5 above and levied by the Commonwealth of
Pennsylvania or any political subdivision thereof shall be divided
equally between the Seller and the Buyer.
9. MAINTENANCE. Buyer shall maintain all buildings and im-
provements on the said premises in good and substantial repair.
Unless Buyer and Seller otherwise agree in writing, insurance
proceeds shall be applied to restoration or repair of the property
damaged, if the repair is economically feasible and Seller's
security is not lessened. If the restoration or repair is not
economically feasible or if Seller's security would be lessened, the
insurance proceeds shall be applied to the sums secured by this
agreement, with any excess paid to Buyer. Any improvements, repairs,
or alterations may be made to the premises by buyer without the
prior written consent of the Seller.
10. MUNICIPAL ORDINANCES. Seller represents and warrants that
no notice from any governmental authority has been issued or served
upon the premises or any occupant thereof or upon Seller, calling
attention to any violation of any building, fire, safety or other
ordinances or requiring or calling attention to the need for any
curbing, requibing, paving, repaving or other construction or
improvements on or about the premises or the removal of any nuisance
therefrom..
i1.MUNICIPAL IMPROVEMENTS. Seller represents and warrants that
no municipal or other governmental improvements affecting the pre-
mises are, as of the date hereto, in the course of construction or
installation and to the best of Seller's knowledge no such
improvements have been ordered to be made.
12. MUNICIPAL ASSESSMENTS. Seller represents and warrants that
all street paving, curbing and other municipal or other governmental
improvements which have been constructed or installed have been paid
for and will not hereafter be assessed and all assessments
heretofore made have been paid in full.
13. STRICT PERFORMANCE. Failure of Seller to insist on strict
performance by Buyer of the terms of this agreement, shall not be
construed as a waiver, release or relinquishment thereof.
14 . DEFECTS IN TITLE. In the event that any defects exist that
would not make the title to the premises good and marketable as
herein provided, Seller shall have a reasonable time to correct same
after being apprised thereof by the Buyer.
15. NOTICES. All payments, notices and documents required by
this agreement shall be sufficiently delivered, if mailed by
certified mail, postage prepaid, return receipt requested or
7/ � a 5
J
personally delivered to one of the parties to this agreement as
follows:
a.To the Seller: 20 Creek Rd. Elizabethtown, PA. 17022
b.To the Buyer: 1708 Anna St. New Cumberland, PA. 17070
With a copy to Buyer's attorney:
Gerald J. Shekletski, Esq.
414 Bridge St.
New Cumberland, PA 17070
gshekletski @stonelaw.net
16.TAX RECEIPTS. Seller shall present to Buyer paid real
estate tax receipts or a photocopy thereof on or before the first
day of December of each year and shall pay any and all other utili-
ties that are lienable against the title to the premises prior to
the date of assessment of penalties, interest or late charges.
Buyer shall provide Seller with proof of payment upon request. All
taxes levied on the real estate shall be prorated as of the date of
this agreement, the county and municipal taxes being prorated on a
calendar year basis, and the school district taxes being prorated on
a July 1 fiscal year basis.
17. TENDER OF DEED. Formal tender of an executed deed and of
the purchase money is hereby waived.
18. CONSTRUCTION. Whenever used herein the singular number
shall include the plural and the plural shall include the singular
and the use of any gender shall include all genders and the words
Seller and Buyer wherever used shall include their heirs, executors,
administrators, successors and assigns, except where otherwise
herein provided. The obligations, responsibilities and liabilities
of the Buyer shall be both joint and several.
19. DELAY OR OMISSION. No delay or omission of either party
thereto to exercise any right or power accruing upon any non- compli-
ance or default by the other party with respect to any of the terms,
covenants or conditions of this agreement shall impair any such
right or power or be construed to be a waiver thereof.
20. NOTICE OF DEFAULT. In the event that Buyer defaults in the
performance of this agreement, the Seller shall give the Buyer
written notice of the default. The Buyer shall have thirty (30)
days after receipt of the mailing of the notice or refusal of
receipt of the mailing of the notice within which to cure the
default. In the event that the Buyer fails to either cure the
default within the said thirty (30) day period, the Seller may
exercise the remedies set forth below.
21.DEFAULT REMEDIES. In the event of default by the Buyer in
the payment of any sum of principal or interest herein agreed to be
paid after the same shall become due and payable by the terms
hereof, or in case of the breach of any other of the terms of this
agreement, after notice of default has been given as provided for
above, and if the default has not been cured within the thirty (30)
days provided for above, the Seller shall have the option to retain
all monies theretofore paid to Seller by Buyer as liquidated damages
and to terminate this agreement with the Buyer thereafter having no
interest whatsoever in this agreement, and the premises herein
described, including any and all lease agreements then in effect,
shall be the property of Seller and Buyer shall immediately pay to
Seller upon demand of Seller, the reasonable cost of placing the
premises in the same condition as they are at the time hereof except
for
ordinary wear and tear, and any improvements made by buyer, with
the right of possession to immediately vest in Seller.
22.DESCRIPTIVE HEADINGS. The descriptive headings used herein
are for convenience only and they are not intended to indicate all
of the matter in the sections which follow them. Accordingly, they
shall have no effect whatsoever in determining the rights or
obligations of the parties.
23.PROPERTY SOLD AS IS. The Seller and Buyer hereby agree that
the property is being sold to Buyer in "as is" condition subject to
the terms of this agreement.
24.COMMISSION. Buyer is a licensed realtor in the Commonwealth
of Pennsylvania. Seller and Buyer represent and warrant to each
other that no broker was instrumental or involved in any way in
negotiating this transaction and that no realtors' commission shall
be due on the subject sale.
25. RECORDING. Seller and Buyer agree that this agreement shall
not be recorded in the Office of the Recorder of Deeds of Cumberland
County, Pennsylvania.
26.AGREEMENT. This agreement contains the whole agreement
between the parties and there are no other terms, obligations, cove-
nants, representations, statements or conditions, oral or otherwise,
of any kind whatsoever and it may not be altered, amended or
modified other than in writing executed by the parties hereto.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals the day and year first above written.
I (SEAL)
Witness/ Sell4Vr
Witness Seller (SEAL)
& C, - AAA OUI &V (SEAL)
Witness g r
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF \\\\ : i . SS:
On this, the day of 20_�A, before me the
undersigned officer, a Notary Public, personally appeared
�t���. • �1o�t�� v,� �. 7�`c�i��bU known to me (or
satisfactorily proven) to be the persons whose names are subscribed
to the within instrument and acknowledged that they executed the
same for the purposes therein contained.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and
year first above written.
Notary Public
COMMONWEALTH Of PENNSYLVANIA
NOTARIAL_ SEAL
CAROL L. TROXELL, Notary Public
Now Cumberland Boro. Cumberland Co.
My Commission Expires Oac. 27, 2009
, .f `, : „u.....: t. .:•.i .. t t .,t-r Ir ti '" r > t. :r r i r , rYTr � - -.�
Fldoogle a _
Nome Alge
Loan Amortization
J U u
PMT No. Date Principal Interest Balance 1
1 9/2009 $218.91 $916.67 $199,781.09 QE / • l
2 10/2009 $219.91 $915.66 $199,561.17 v o ✓ �
3 11/2009 $220.92 $914.66 $199,340.25
4 12/2009 $221.94 $913,64 $199,118.32
Annual To -Date Totals:
Principal: $881,68 Interest: $3,660.63
PMT No. Date Principal Interest Balance
5 1 /2010 $222.95 $912.63 $198,895.36
6 2/2010 $223.97 $911,60 $198,671.39
7 3/2010 $225.00 $910.58 $198,446.39
8 4/2010 $226.03 $909.55 $198,220.36
9 5/2010 $227.07 $908.51 $197,993.29
10 6/2010 $228.11 $907.47 $197,765.18
11 7/2010 $229.15 $906.42 $197,536.03
12 8/2010 $230.20 $905.37 $197,305.82
13 9/2010 $231.26 $904.32 $197,074.56
14 10/2010 $232.32 $903.26 $196,842.24
15 11/2010 $233.38 $902.19 $196,608.86
16 12/2010 $234.45 $901.12 $196,374.40
Annual To -Date Totals:
Principal: $3,625.60 Interest: $14,543.65
PMT No, Date Principal Interest Balance
17 1/2011 $235.53 $900.05 $196,138.87
18 2/2011 $236.61 $898.97 $195,902.27
19 3/2011 $237.69 $897.89 $195,664.57
20 4/2011 $238.78 $896.80 $195,425.79
21 5/2011 $239.88 $895.70 $195,185.92
22 6/2011 $240.98 $894.60 $194,944.94
23 7/2011 $242.08 $893.50 $194,702.86
24 8/2011 $243.19 $892.39 $194,459.67
25 9/2011 $244.30 $891.27 $194,215.36
Annual To -Date Totals:
Principal: $5,784.64 Interest: $22,604.81
Balloon Payment Due of: $195,105.52 at the end of 10/2011.
($194,215.36 principal and $890.15 Interest)
EXHIBIT "C"
Addendum To Sales Agreement
In reference to the Sales Agreement for the property located at 170 h h11 ,S'f LewC'v,./ 7001,0 Av
between 2k `j eA .S. tze o SELLER(S), and g oSS
BUYER, Dated 7
the undersigned Buyer and Seller hereby agree to the following Changes:
1. The payment terms will continue through April 2013 with the final balloon payment being
due on or before, but no later than April 30, 2013.
2. The $230 amount for taxes and insurance will be raised from $230 per month to $258.30.
Total payment including principal, interest, taxes and insurance will be $1,393.8 per
month.
3. Buyer will be responsible for any increases in real estate taxes including assessments,
along with any increases in home owners insurance premiums. Seller will provide proof of
any increases in these fees and the increased amount will be due and included in the
following months payment.
4. Buyer will use the property only for uses permited by local odinances and municipal
authorties. Buyer accepts any and all responsibility and liability that may arise from any
use of the property other than as a single family residence
5. Buyer will make no significant repairs or changes to the property without prior written
acceptance of the Seller: Buyer further agrees the the exterior privacy fence will be
completed no later than November 6 2011.
6. Buyer agrees to include the exterior (including landscasping) in paragraph 9.
This addendum, upon its execution by both parties, is herewith made an integral part of the
aforementioned Sales Agreement.
Date: 7 /� Date: vC/' Z.II
Pur ser e ller
C
Purchaser Seller
Witness Witness
S140 T AND SUBS RIB D BEFOR ME THIS 27th DAY
VWFALTNWR I.'VA Q11.
Notarial Seal
Denise Plnamontl, Notary Public
0.tT p wal i C Lemoyne eoro, Cumberland County
My Commission Expires Jan. 12, 2014
Member, Pennsylvania Association of Notaries
Page 2 of 12
Tables:
Your annual schedule of payments
Month Monthly Remaining amount Principal Interest Cumulative interest
payment owed paid paid paid
1 $1,136 $199,781 $219 $917 $917
2 $1,136 $199,561 $220 $916 $1,832
3 $1,136 $199,340 $221 $915 $2,747
4 $1,136 $199,118 $222 $914 $3,661
5 $1,136 $198,895 $223 $913 $4,573
6 $1,136 $198,671 $224 $912 $5,485
7 $1,136 $198,446 $225 $911 $6,395
8 $1,136 $198,220 $225 $910 $7,305
9 $1,136 $197,993 $227 $909 $8,213
10 $1,136 $197,765 $228 $907 $9,121
11 $1,136 $197,536 $229 $906 $10,027
12 $1,136 $197,306 $230 $905 $10,933
13 $1,136 $197,075 $231 $904 $11,837
14 $1,136 $196,842 $232 $903 $12,740
15 $1,136 $196,609 $233 $902 $13,643
16 $1,136 $196,374 $234 $901 $14,544
17 $1,136 $196,139 $236 $900 $15,444
18 $1,136 $195,902 $237 $899 $16,343
19 $1,136 $195,665 $238 $898 $17,241
20 $1,136 $195,426 $239 $897 $18,137
21 $1,136 $195,186 $240 $896 $19,033..
22 $1,136 $194,945 $241 $895 $19,928
23 $1,136 $194,703 $242 $893 $20,821
24 $1,136 $194,460 $243 $892 $21,714
25 $1,136 $19x,215 $2 $891 $2260
26 $1,136 $193,970 $245 $890 $23,495
7L,Jt�hSGON 27
$1,136 $193,723 $247 $889 $24,384
28 $1,136 $193,476 $248 $888 $25,272
( V� 2 $1,136 $193,227 $249 $887 $26,159
}V � $1,136 $192,977 $250 $886 $27,044
+ V 31 $1,136 $192,726. $251 $884 $27,929
32 $1,136 $192,474 $252 $883 $28,812
33 $1,136 $192,220 $253 $882 $29,694
httn• / /nartnp.fc b-ndfi►jinn rim /tnnlc /naraann/homnO2/ tool. fcs? na ram = tWN *rXRxnGkNgm35tW1xrSPD.., 9/30/2011
Page 3 of 12
34 $1,136 $191,966 $255 $881 $30,575
35 $1,136 $191,710 $256 $880 $31,455
36 $1,136 $191,453 $257 1879 $32,334
37 $1,136 $191,195 $258 $877 $33,211
O-j 38 $1,136 $190,936 $259 $876 $34,088
39 $1,136 $190,675 $260 $875 $34,963
0 $1,136 $190,414 $262 $874 $35,837
41 $1,136 $190,151 $263 $673 $36,709
42 $1,136 $189,887 $264 $872 $37,581
43 $1,136 $189,621 $265 $670 $36,451
44 $1,136 $189,355 $266 $869 $39,320
45 $1,136 $189,087 $266 $868 $40,188
46 $1,136 $188,818 $269 $867 $41,055
47 $1,136 $188,548 $270 $865 $41,920
48 $1,136 $188,277 $271 $864 $42,784
49 $1,136 $188,004 $273 $863 $43,647
50 $1,136 $187,730 $274 $862 $44,509
51 $1,136 $187,455 $275 $860 $45,369
52, $1,136 $167,179 $276 $859 $46,229
53 $1,136 $186,901 $278 $858 $47,067
54 $1,136 $186,622 $279 $B57 $47,943
55 $1,136 $186,342 $280 $855 $48,799
56 $1,136 $186,060 $282 $854 $49,653
57 $1,136 $185,777 $283 $853 $50,505
58 $1,136 $185,493 $284 $851 $51,357
59 $1,136 $185,208 $285 $850 $52,207
60 $1,136 $184,921 $287 $849 $53,056
61 $1,136 $184,633 $288 $848 $53,903
62 $1,136 $184,344 $289 $846 $54,750
63 $1,136 $184,053 $291 $845 $55,595
64 $1,136 $183,761 $292 $844 $56,438
65 $1,136 $183,468 $293 $642 $57,280
66 $1,136 $183,173 $295 $641 $58,121
67 $1,136 $182,B77 $296 $840 $58,961
68 $1,136 $182,580 $297 $838 $59,799
69 $1,136 $182,281 $299 $837 $60,636
�'�'^•�� ^ ^- ti ^�r� ^ ^�1 �:•n�n.. ..i.+++�4nn�n /.vn rn nn+� n117 /fnnl frelttaram= tVJN'krXR X11C�r kNnm.TStWixrgnD... 9/30/2011
EXHIBIT "D"
Premise Accounts
r 23525 i A
customer Report i Premise
29 Apr -2013 23525 :
1708 ANNA 8T
Attached Consumers
Pending Invoices
M ELIZABETH VORAS
WWI
\ 138450 x
2073'
� �� mvairT' Acct � 04 $8.18 7a7D45
-'°` t)1 -Ma 2013 813205 1x1870 t
.23525
Services at this Premise --
SEWER M A M j 240386982
I i
e
c w t
Trans Code., igvalce ; Tfans_D81;e Statu$ Amount., Remaining � DesGttption� BalanceA
Bill 141870 01 -May -2013 O $132.05 $132.05 $261.88
Credit 27534 04•Mar -2013 C $0.00 $0.00 Crediilnvotce i'L9 8
__. _
PenS 04 -Mar -2013 C $4.25 $0.00 Penalty -Sewer 03(04! $129 83
PenT 04- Mar -2013 C $1 93 $0.00 Penalty- Trash 03104! : $125.58
Bill 141045 04-Mar-2013 O $0.00 $6.18 InternalBill _
_.......__......... - ...... ..... -
Bill 138050 01 -Feb -2013 O $123.65 $123.65 $123.65
UBPaym 12- Nov -2012 C ($142.86) $0.00 Utility Billing Paym•11/ $0.00
UBPaym 12- Nov -2012 C ($7.75) $0.00 Utility Billing
T .
aym -i1! $142.86
UBPaym 12- Nov -2012 C ($154.99) $0.00 Utility Billing Paym -11! $150.61
Bill 131057 01- Nov -2012 C $142.86 $0.00
_.... $305.
04- Sep -2012 C $5.82 $0.00 Y -
PenS Penalty Sewer - 09!041' 162.
PenT 04- Sep -2012 C $1.93 $0,00 Penalty - Trash - 09104/ $156.92
Bill 127092 04- Sep -2012 !v $0.00 $0.00 InternaiBill $154.99
Bill 124094 01 -Aug -2012 C $154.99 $ $154.99
UBPaym 18 -Jun -2012 C ($6.72) $0.00 Utility Bi lli n g Paym•06! $
UBPa y m 18 Jun -2012 C ($134.46) $0.00 Utility Billing Paym -061 $6.72
_
UBPaym 18 -Jun -2012 C ($8.06) $0.00 Utility Billing Paym•06/ $141.18
UBPaym 18- Jun -2012 C ($161.12) $0.00 Utility Billing Paym -061 $149.24
. ...........
Pens
04-Jun-2012 C $4.79 $0.00 Penalty - Sewer /0 4/ $3
PenT 04-Jun-2012 C $1.93 $0.00 Penalty Trash 06/041 $305.57
Bill 123263 04 -Jun 2012 C $0.00 {---�$ -0.00 ° InternalBiii $303.64
Will 120275 01 -May -2012 C $134.46 $0.00 $303.64
05-Mar-2012 C $1.93 $0.00 y • Trash-03/05/ $169.18
PenT
Penalty
PenS 05 -Mar -2012 C $6.13 $0.0 0 Penalty - Sewer- 031051 $167.25
_.. -
Bill 119490 65•Mar -2012 C $0.00 $0.00 Internal6111 $ 161.12
UBPaym 15- Feb -2012 C ($6.17) $0.00 Utility Billing Paym 021 $161.12
UBPaym 15-Feb-2012 C ($123.42) - $0.00 Utility Billing Paym -021 $167.29
UBPaym 15- Feb -2012 C ($5.34) $0.00 Utility Billing paym•02/ $290.71
UBPaym
15 -Feb -2012 C ($106.79) $0.00 Utility Bllling Paym -02/ : $296.05
B {II 116493 01 Feb -2012 C $161.12 $0.00 $402.84
PenS 02 -Dec -2011 1" $4.24 $0.00 Penaity - Sewer - 12/02/ $241.72
a
EXHIBIT "E"
a�
Elizabeth S. Voras
1009 Huntington Lane Elizabethtown PA 17022
April 1, 2013
Ross E. Gahagan
1708 Anna Street
New Cumberland PA 17070
VIA CERTIFIED MAIL
RE: 1708 ANNA STREET CONDITIONAL SALES AGREEMENT
NOTICE OF DEFAULT AND NOTICE TO VACATE PREMISES
Mr, Gahagan:
This letter is to follow up on the written default notice I gave to you via email dated March 11, 2013 that you are
in default of our conditional sales agreement dated August 27, 2009 (as amended October 27, 2011) due to
failure to pay the required payment for March, 2013, in the amount of $1,493.80 (which includes a $100.00 late
fee for any payments received after the 10 of each month), which was due by March 1, 2013.
Since the date of that email you have also failed to make the required payment for April 2013, in the amount of
$1,393.80 which was due by April 1, 2013. Total amount outstanding is $2887.60.
In addition, you have been in default of the agreement since November 7, 2011 for failure to complete the fence
around the property by November 6, 2011, as stipulated in the agreement addendum dated October 27, 2011.
You had previously, on several occasions, indicated to me that it was completed. Only upon my recent
inspection on March 30, 2013 did I find that this was not the case.
As per paragraphs 20 and 21 of the agreement, if you do not completely cure the defaults within the 30 day
time frame of the notice of the default which began on March 11, 2013, the agreement terminates, you forfeit
all monies previously paid and you must immediately vacate the premises. Failure to comply fully will result in
my pursuing any and all further legal remedies available to me.
Sincerely,
Elizabeth ' SVor
Enclosure
CC: Craig Diehl, Esq. (w /Enc.) via Certified Mail
Gerald J. Shekletski, Esq.( w/ Enc.) via US Mail
P
EXHIBIT "F"
•
. , c
• Complete Items 1, 2, and 3. Also complete A. nature
• Print t yourr Restricted meand address on the reverse
X >4rAgent
so that we can return the card to you, 0 Addressee
e Attach this card to the back of the mallplece, Rac d by (P ted Name) C. Data of Delivery
or on the front If space permits. d �
1. Article Addressed to; D. Is delivery a dress different from item 1? O Yes I
If YES, enter delivery address below: GK'O I
C�-d��
c d 1a /l 3. Service type
J O Certif[ed Mall O Express Mall f
13 Registered 1 3 Return Receipt for MerchandlsQ
1 0 Insured Mall D C.O.D. !
4. Restricted Dellvery? (Extra Fee)
2. Artlole Number '• - ❑Yes �
ranter groin service labeq ' 7012 2 9 2 11 0001 9 5 3
PS Form 3811, February 004 D 756
l
ry omestic Retum Receipt
- - -- - --- -� ---- ....:---- ..__.._. — 102 995.02- M•1640.�
r /
M Complete Items 1, 2, and 3. Also complete A. Slgnatur
Item 4 If Restricted Delivery Is desired.
■ Print your name and address on the reverse X - 13 Agent
so that we can return the card to you. 17 Addressee -
■ Attach this card.to the back of the mallplece, B. R d by (Pr/n eme) C. Date of Delivery
or on the front If space permits.
1. Article Addressed to: D. Is delivery address differ roan 1? ❑ Y i
If YES, enter del add e 0
Ga ha 9 an NO i
V e w C.44 be rla r? 3' $e Cert Type I
Q Certified Mail
/ fa Registered ❑ Rat r fP1 andise
l7 Insured Mail ❑ C.O.D. 7
4• Restricted Delive)y? (Extra Fee) O Yes !
2, Article Number — - - - - -- -
(Transfer from sen4ce labeg . 7-012 2 9 2 D 0001 9 513 7577
PS Form 3811; February 2004 Domestic Return Receipt l
- 102599.02- M•1540
U
I
VERIFICATION
I, Elizabeth S. Voras, certify the foregoing Complaint is based upon information which has
been gathered by my counsel in the preparation of the lawsuit. The language of this Complaint is
that of counsel and not my own. I have read the document and to the extent the Complaint is based
upon information which I have given to my counsel, it is true and correct to the best of my
knowledge, information and belief. To the extent the content of the Complaint is that of counsel,
I have relied upon counsel in making this Verification.
This statement and Verification are made subject to the penalties of 18 Pa. C.S. § 4904
relating to unsworn falsification to authorities, which provides that if I knowingly make false
averments, I may be subject to criminal penalties.
SHERIFF'S OFFICE OF CUMBERLAND COUNTY
Ronny R Anderson ELLED-OFL:NL.
Sheriff OF THE P OTHUNO l,i;
ow Di Comber,Jody S Smith
Chief Deputy 2013 JUN 21 AM 10: 31
� T
Richard W Stewart CUMBERLAND COUNTY
Solicitor °'p`` ` "° E. ;€ = PENNSYLVANIA
Elizabeth S Voras
Case Number
vs.
Ross E Gahagan 2013-3281
SHERIFF'S RETURN OF SERVICE
06/17/2013 07:18 PM - Deputy Tim Black, being duly sworn according to law, served the requested Complaint in
Ejectment by"personally" handing a true copy to a person representing themselves to be the Defendant,
to wit: Ross E Gahagan at 1708 Anna Stret, New Cumberland Borough, New Cumberland, PA 17070.
TIM C , DEPUTY
SHERIFF COST: $47.67 SO ANSWERS,
June 18, 2013 RONIr'R ANDERSON, SHERIFF
t Uili4 1 ::3nt' C.•9SCi4.
t ; 1,7/-_,I ,
V .1
^'221 'p.
- -'2151-RI
I'E-,y?1S, c 41 1U II I
John J. Baranski, Jr. Esquire `�
I D. No. 82585
BLAKEY, YOST, BUPP & RAUSCH, LLP
17 East Market Street
York, PA 17401
(717) 845-3674
Attorney for Defendant
ELIZABETH S. VORAS, : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
vs. : No. 13-3281 CIVIL TERM
ROSS E. GAHAGAN, : IN EJECTMENT
Defendant
PRELIMINARY OBJECTIONS OF DEFENDANT
S-\\E
AND NOW TO WIT, day of July, 2013 comes the Defendant, Ross E. Gahagan, by
his attorneys, Blakey, Yost, Bupp & Rausch, LLP, and in support of these Preliminary
Objections, avers as follows:
1. The matter sub judice involves an alleged Installment Agreement and breach
thereof.
2. Installment Agreements are considered mortgages under Pennsylvania law and as
such must be foreclosed on in a similar manner with all necessary statutory notices
delivered to the mortgage debtor. Blessing v. Foster, 2007 WL 5770077 (Pa. Com.
Pl., Cumberland County) citing Anderson Contracting Co. v. Daugherty, 274 Pa.
Super. 13 (1979).
3. On or about June 7, 2013, Plaintiff filed a lawsuit seeking ejectment against
Defendant for an alleged default in the terms of an Installment Sales Agreement.
4. An Act 6 Notice is a statutory required notice that must be given before any
residential mortgage lender may accelerate the maturity of any residential mortgage
obligation, commence any legal action including mortgage foreclosure to recover
under such obligation or take possession of any security of the residential mortgage
debtor for such residential mortgage obligation. (See 41. P.S. 403, known as the
Loan Interest and Protection Law, Act of 1974 No. 6 attached hereto as Exhibit
"A„)
5. The Plaintiff in this smatter is a"residential mortgage lender” as that term is defined
in Act 6.
6. The Defendant is a"residential mortgage debtor"as that term is defined in Act 6.
7. The Installment Sales Agreement between the parties is a "security interest" as that
term is defined in Act 6.
8. As a security interest,the Installment Sales Agreement is a"residential mortgage" as
that term is defined in Act 6.
9. Attached hereto as Exhibit `B" is a sample of the Act 6 Notice as promulgated by
the Pennsylvania Department of Banking.
10. The Plaintiff failed to delver the required Act 6 Notice to Defendant by certified
mailed prior to commencing the Action in Ejectment.
11. The Plaintiff, by filing its pleadings prior to the delivery of an Act 6 Notice to
Defendant as aforesaid, has failed to comply with the constraints of Act 6 and as
such, cannot proceed.
12. Pa.R.C.P. Rule 1028(a)(2)permits preliminary objections to a pleading for failure to
conform to law or rule of Court.
WHEREFORE, it is respectfully requested that this Court dismiss the Complaint for failure
to confirm to the rules and law related to Act 6.
Respectfully submitted,
BLAKEY, YOST, BU' ' & ' USCH, LLP
Date: 1 ll0. By: dri
Jo ►T'. Baranski,Jr., Esquire
S. t. I.D. #82585
East Market Street
'York,PA 17401
Telephone(717) 845-3674
Fax (717)854-7839
ELIZABETH S. VORAS, : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
vs. : No. 13-3281 CIVIL TERM
ROSS E. GAHAGAN, : IN EJECTMENT
Defendant
CERTIFICATE OF SERVICE
I hereby certify that I am this day causing a copy of the foregoing Preliminary Objections
to be served by First Class United States Mail, postage prepaid on the following person:
Christopher E. Rice, Esquire
Martson Deardorff Williams Otto Gilroy & Faller
10 East High Street
Carlisle, PA 17014
BLAKEY, T, : P & RAUSCH, LLP
Dated: By:
ski, Jr., Esquire
S t'. I.D. #82585
7 East Market Street
York, PA 17401
Telephone (717) 845-3674
Fax No. (717) 854-7839
LOAN INTEREST AND PROTECTION LAW
Act of Jan.30, 1974,P.L. 13,No. 6
AN ACT
Regulating agreements for the loan or use of money; establishing a maximum lawful interest rate in the
Commonwealth; providing for a legal rate of interest; detailing exceptions to the maximum lawful
interest rate for residential mortgages and for any loans in the principal amount of more than fifty
thousand dollars and Federally insured or guaranteed loans and unsecured, noncollateralized loans in
excess of thirty-five thousand dollars and business loans in excess of ten thousand dollars; providing
protections to debtors to whom loans are made including the provision for disclosure of facts relevant to
the making of residential mortgages,providing for notice of intention to foreclose and establishment of a
right to cure defaults on residential mortgage obligations, provision for the payment of attorney's fees
with regard to residential mortgage obligations and providing for certain interest rates by banks and
bank and trust companies; clarifying the substantive law on the filing of and execution on a confessed
judgment; prohibiting waiver of provisions of this act, specifying powers and duties of the Secretary of
Banking, and establishing remedies and providing penalties for violations of this act, further providing
for definitions, for maximum lawful interest rates, for residential mortgage interest rates, for penalties
and for enforcement.
TABLE OF CONTENTS
Article I. Preliminary Provisions
Section 101. Definitions.
Article II. Maximum Lawful Interest Rate
Section 201. Maximum Lawful Interest Rate.
Section 202. Legal Rate of Interest.
Article III.Exceptions to Maximum Lawful Interest Rate
Section 301. Residential Mortgage Interest Rates.
Section 302. Federally Guaranteed Loans.
Section 303. Commitments to Enter Into Residential Mortgages.
Article IV. Protective Provisions
Section 401. Disclosure Requirements.
Section 401.1.Photocopies of Security Documents.
Section 402. Discount Points Prohibited.
Section 403.Notice of Intention to Foreclose.
Section 404. Right to Cure a Default.
Section 405. Prepayment Penalty Prohibited.
Section 406. Attorney's Fees Payable.
DEFENDANT'S
g EXHIBIT
4
Section 407. Confession of Judgment.
Section 408. Waivers.
Article V.Remedies and Penalties
Section 501. Excessive Interest Need Not Be Paid.
Section 502. Usuary and Excess Charges Recoverable.
Section 503. Reasonable Attorney's Fees Recoverable.
Section 504. Individual Actions Permitted.
Section 505. Penalties.
Section 506. Enforcement.
Section 507. Effect on Other Acts.
Article VI. General Provisions
Section 601. Regulations.
Section 602. Construction; Title of Purchaser.
Section 603. Repeals.
Section 604. Effect on Inconsistent Acts.
Section 605. Effective Date.
ARTICLE I
Preliminary Provisions
Section 101. Definitions.--As used in this act:
"Actual settlement costs" means reasonable sums paid for:
(a) Any insurance premiums which have been approved by the Insurance Commissioner of the
Commonwealth.
(b)Title examination and search, and examination of public records.
(c)The preparation and recording of any or all documents required by law or custom for settlement.
(d)Appraisal and/or survey of property securing the loan.
(e) A single service charge, which shall include any consideration paid by the residential mortgage
debtor and received and retained by the residential mortgage lender for or related to the acquisition,
making, refinancing or modification of a residential mortgage loan,plus any consideration received by
the residential mortgage lender for making a mortgage commitment, whether or not an actual loan
follows such commitment. The service charge shall not exceed one per cent of the original bona fide
principal amount of the loan, except that in the case of a construction loan, the service charge shall not
exceed two per cent of the original bona fide principal amount of the loan.
(f) Charges and fees necessary for or related to the transfer of the property or the closing of the
residential mortgage loan, paid by the residential mortgage debtor and received by any party other than
the residential mortgage lender, whether or not paid by the residential mortgage debtor directly to the
third party or to the residential mortgage lender for payment to the third party.
"Base figure"means two hundred seventeen thousand eight hundred seventy-three dollars($217,873), as
adjusted annually for inflation by the department through notice published in the Pennsylvania Bulletin.
2
"Department"means the Department of Banking of the Commonwealth.
"Discount points" means any charges, whether or not actually denominated as "discount points," which
are paid by the seller of residential real property to a residential mortgage lender which directly or
indirectly affects the ability of the buyer of the real estate to secure a residential mortgage.
"Finance charge"means the total cost of a loan or charge for the use of money, including any extensions
or grant of credit regardless of the characterization of the same and includes any interest, time price
differential, points, premiums, finder's fees, and other charges levied by the residential mortgage lender
directly or indirectly against the person obtaining the loan or against the seller, lender, mortgagee or any
other party to the transaction except any actual settlement costs. The finance charges plus the actual
settlement costs charged by the residential mortgage lender shall include all charges made by the
residential mortgage lender to the residential mortgage debtor other than the principal of the loan. In
computing finance charge on any mortgage which does not require the full amount of the first year's
interest to be paid during the first year and on a variable interest rate mortgage interest shall be
calculated at the rate applicable to the first year of the loan.
"Loan yield" means the annual rate of return obtained by a residential mortgage lender from a residential
mortgage debtor over the term of the loan and shall be determined in accordance with regulations issued
by the Secretary of Banking. Such regulations shall establish the method for calculating such rate of
return and shall provide that the finance charge be amortized over the contract term of the loan. In
computing loan yield on any mortgage which does not require the full amount of the first year's interest
to be paid during the first year and on a variable interest rate mortgage interest shall be calculated at the
rate applicable to the first year of the mortgage.
"Monthly Index of Long Term United States Government Bond Yields" means the monthly unweighted
average of the daily unweighted average' of the closing bid yield quotations in the over the counter
market for all outstanding United States Treasury Bond issues, based on available statistics, which are
either maturing or callable in ten years or more. This index is expressed in terms of percentage interest
per annum.
"Mortgage commitment" means a legally binding obligation to lend money on the security of a
residential mortgage.
"Person" means an individual, corporation, business trust, estate trust, partnership or association or any
other legal entity, and shall include but not be limited to residential mortgage lenders.
"Residential mortgage" means an obligation to pay a sum of money in an original bona fide principal
amount of the base figure or less, evidenced by a security document and secured by a lien upon real
property located within this Commonwealth containing two or fewer residential units or on which two or
fewer residential units are to be constructed and shall include such an obligation on a residential
condominium unit.
"Residential mortgage debtor" means a non-corporate borrower who is obligated to a residential
mortgage lender to repay in whole or in part a residential mortgage and a successor record owner of the
property, if any,who gives notice thereof to the residential mortgage lender.
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"Residential mortgage intermediary" means a real estate broker, mortgage broker or other person
receiving directly or indirectly from a residential mortgage lender a finder's fee, commission,placement
fee, service charge or other similar compensation other than actual settlement costs in conjunction with
the issuance of a residential mortgage or mortgage commitment. Residential mortgage intermediary
shall not mean an employee of a residential mortgage lender.
"Residential mortgage lender" means any person who lends money or extends or grants credit and
obtains a residential mortgage to assure payment of the debt. The term shall also include the holder at
any time of a residential mortgage obligation.
"Residential real property" means real property located within this Commonwealth containing not more
than two residential units or on which not more than two residential units are to be constructed and
includes a residential condominium unit.
"Security document" means a mortgage, deed of trust, real estate sales contract or other document
creating upon recordation a lien upon real estate.
ARTICLE II
Maximum Lawful Interest Rate
Section 201. Maximum Lawful Interest Rate.—(a) Except as provided in Article III of this act, the
maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars
($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six
per cent per annum.
(b)The maximum lawful rate of interest set forth in this section shall not apply to:
(i) an obligation to pay a sum of money in an original bona fide principal amount of more than
fifty thousand dollars($ 50,000);
(ii)an unsecured, noncollateralized loan in excess of thirty-five thousand dollars($ 35,000); or
(iii) business loans of any principal amount.
Section 202. Legal Rate of Interest.--Reference in any law or document enacted or executed heretofore
or hereafter to "legal rate of interest" and reference in any document to an obligation to pay a sum of
money "with interest" without specification of the applicable rate shall be construed to refer to the rate
of interest of six per cent per annum.
ARTICLE III
Exceptions to Maximum Lawful Interest Rate
Section 301. Residential Mortgage Interest Rates.--(a) The General Assembly hereby finds that it is
necessary and appropriate to establish a flexible maximum lawful interest rate for residential mortgages,
as defined in this act, and further finds that the Monthly Index of Long Term United States Government
Bond Yields is the appropriate basis on which such a maximum rate of interest may be established.
(b) The maximum lawful rate of interest for residential mortgages, as defined in this act, entered into or
contracted for during any calendar month shall be equal to the Monthly Index of Long Term United
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States Government Bond Yields for the second preceding calendar month plus an additional two and
one-half per cent per annum rounded off to the nearest quarter of one per cent per annum.
(c) On or before the twentieth day of each month,the Secretary of Banking(i) shall determine, based on
available statistics, the Monthly Index of Long Term United States Government Bond Yields for the
preceding calendar month; and (ii) shall determine the maximum lawful rate of interest for residential
mortgages for the next succeeding month, as defined in subsection (b) of this section, and shall cause
such maximum lawful rate of interest to be filed with the Legislative Reference Bureau for publication
in the Pennsylvania Bulletin; such maximum lawful rate of interest to be effective on the first day of the
next succeeding month.
(d) The loan yield obtained by a residential mortgage lender from the residential mortgage debtor shall
not exceed the maximum lawful rate of interest for residential mortgages established in section 301(b).
A contract rate within the maximum lawful interest rate applicable to a residential mortgage at the time
of the loan settlement shall be the maximum lawful interest rate for the term of the residential mortgage,
except variable interest rate mortgages as set forth in section 301(e).
(e) In all proceedings and in all legal actions, the maximum lawful rate of interest for all residential
mortgages, as defined in this act, as published in the Pennsylvania Bulletin by the Secretary of Banking
shall be the maximum lawful rate of interest for residential mortgages, as defined in this act, except that
variable interest rate mortgages may be written provided no increase in interest provided for in any
provision for a variable interest rate contained in a security document, or evidence of debt issued in
connection therewith shall be lawful unless such provision is set forth in such security document, or in
any evidence of debt issued in connection therewith, or both, and such document or documents contain
the following provisions:
(1) That the index for determining increase or decrease in interest rate shall be the lawful rate of
interest as determined under subsections(a), (b)and(c)for residential mortgages.
(2) A requirement that when an increase in the interest rate is required by a movement in a
particular direction of the prescribed standard an identical decrease is required in the interest rate
by a movement in the opposite direction of the prescribed standard.
(3) The rate of interest shall change not more often than once during any semiannual period and
at least six months shall elapse between any two such changes.
(4) The change in the interest rate shall be one-fourth of one per cent in any semiannual period,
and shall not result in a rate more or less than two and five-tenths percentage points greater or
less than the rate for the first loan payment due after the closing of the loan.
(5) The rate of interest shall not change during the first annual period of the loan.
(6) Subject to the provisions of paragraphs (3), (4) and (5), an increase or decrease in the interest
rate shall be effected when the index moves in such percentage that the difference between the
present index rate and present mortgage rate varies not less than one-fourth of a percentage point
from the difference between the index and mortgage rates at the date of the first contracted loan
repayment.
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(7) The contracted periodic payment may at the option of the borrower be increased or decreased
in dollar amount equal to any periodic increase or decrease in interest requirement, or the
contracted periodic payment may at the option of the borrower be retained constant provided the
maturity of the mortgage is not extended beyond forty years from the date of said mortgage or
five years beyond the original maturity date for which said mortgage was written, whichever is
the shorter.
(8) When a change in the interest rate is required or permitted by a movement in the prescribed
index, the lender shall give notice to the borrower by mail, addressed to the borrower's last
known post office address, not less than thirty days prior to any change in interest rate, which
notice shall clearly and concisely disclose:
(i)the effective date of the interest rate change;
(ii) the interest rate change, and if an increase, the extent to which the increased rate will exceed
the rate in effect immediately before the increase;
(iii)the changes in the index which caused the interest rate change;
(iv) the amount of the borrower's contractual monthly principal and interest payments before and
after the effective date of the change in the interest rate, any change in the term of the mortgage
and any option that the mortgage debtor may have to extend or reduce the mortgage term and
retain constant periodic payments.
(9) A statement attached to the mortgage and to any evidence of debt issued in connection
therewith printed or written in a size equal to at least 10-point bold type, consisting of the
following language:
Notice to borrower:this document contains provisions for a variable interest rate.
(10) No residential mortgage lender may take a residential mortgage providing for a variable
interest rate unless it has clearly and conspicuously disclosed to the mortgage debtor in the
mortgage application:
(i)That the mortgage rate is subject to change in the future.
(ii)An explanation of the effect of changes in the index on the rate and term of the mortgage.
(iii)An explanation of the index.
(iv)A statement in 10-point bold type containing the following language:
If the mortgage lender offers to give you a mortgage with a variable interest rate, you are entitled
by law to also be offered a mortgage with an interest rate which will not change. By law, this
fixed interest rate mortgage must be offered to you at reasonably competitive terms and rate.
(11) The Secretary of Banking may by regulation prescribe language and forms which shall be
deemed to comply with these disclosure requirements with the exception of the language
contained in subsection(e)(9)and 10(iv).
(f) The maximum lawful rate of interest set forth in this section shall not apply to(i) an obligation to pay
a sum of money in an original bona fide principal amount of more than the base figure; (ii) an obligation
to pay a sum of money in an original bona fide principal amount of the base figure or less, evidenced by
a security document and secured by a lien upon real property, other than residential real property as
defined in this act; [(iii)and (iv) deleted] or(v)business loans of any principal amount.
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Section 302. Federally Guaranteed Loans.--The maximum lawful rate of interest prescribed in sections ,.
201 and 301 of this act shall not apply to any loan insured or guaranteed in whole or in part by the
Federal Housing Administration, the Veterans Administration or any other department or agency of the
United States Government: Provided, That any such loan is subject to a maximum rate of interest
established by law or by such department or agency.
Section 303. Commitments to Enter Into Residential Mortgages.--A residential mortgage commitment
which provides for consummation within some future time following the issuance of the mortgage
commitment may be consummated pursuant to the provisions, including interest rate, of such
commitment notwithstanding the fact that the maximum lawful rate of interest at the time the residential
mortgage is entered into is less than the commitment rate of interest,provided:
(1) The commitment rate of interest does not exceed the maximum lawful interest rate in effect
on the date the mortgage commitment was issued;
(2) The mortgage commitment when agreed to by the borrower shall constitute a legally binding
obligation on the part of the residential mortgage lender to make a residential mortgage loan
within a specified time period in the future at a rate of interest not exceeding the maximum
lawful rate of interest effective as of the date of commitment offer.
ARTICLE IV
Protective Provisions
Section 401. Disclosure Requirements.--A residential mortgage lender shall provide to the residential
mortgage debtor disclosures required by the "Truth in Lending Act,"Title I, Public Law 90-321, 82 Stat.
146, and the "Real Estate Settlement Procedures Act of 1974," Public Law 93-533, 88 Stat. 1724, and
regulations adopted pursuant thereto.
Section 401.1. Photocopies of Security Documents.--The copy of any security document required to be
furnished to a residential mortgage debtor by the provisions of this act or any regulation promulgated
pursuant thereto may be a photocopy thereof.
Section 402. Discount Points Prohibited.--With the exception of those residential mortgages guaranteed
or insured in whole or in part by the Federal Government, or agency thereof, as enumerated in section
302 of this act, and with the exception of any actual settlement costs(but not discount points, as defined
in this act)paid by a seller of real estate, it shall be unlawful for a residential mortgage lender to charge
to or receive from a seller of real estate directly or indirectly any discount points.
Section 403. Notice of Intention to Foreclose.--(a) Before any residential mortgage lender may
accelerate the maturity of any residential mortgage obligation, commence any legal action including
mortgage foreclosure to recover under such obligation, or take possession of any security of the
residential mortgage debtor for such residential mortgage obligation, such person shall give the
residential mortgage debtor notice of such intention at least thirty days in advance as provided in this
section.
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(b)Notice of intention to take action as specified in subsection (a) of this section shall be in writing, sent
to the residential mortgage debtor by registered or certified mail at his last known address and, if
different, at the residence which is the subject of the residential mortgage.
(c)The written notice shall clearly and conspicuously state:
(1)The particular obligation or real estate security interest;
(2)The nature of the default claimed;
(3) The right of the debtor to cure the default as provided in section 404 of this act and exactly
what performance including what sum of money, if any,must be tendered to cure the default;
(4) The time within which the debtor must cure the default;
(5) The method or methods by which the debtor's ownership or possession of the real estate may
be terminated; and
(6) The right of the debtor, if any, to transfer the real estate to another person subject to the
security interest or to refinance the obligation and of the transferee's right, if any, to cure the
default.
(d) The notice of intention to foreclose provided in this section shall not be required where the
residential mortgage debtor, has abandoned or voluntarily surrendered the property which is the subject
of a residential mortgage.
Section 404. Right to Cure a Default.--(a)Notwithstanding the provisions of any other law, after a notice
of intention to foreclose has been given pursuant to section 403 of this act, at any time at least one hour
prior to the commencement of bidding at a sheriff sale or other judicial sale on a residential mortgage
obligation, the residential mortgage debtor or anyone in his behalf, not more than three times in any
calendar year, may cure his default and prevent sale or other disposition of the real estate and avoid
acceleration, if any, by tendering the amount or performance specified in subsection(b)of this section.
(b)To cure a default under this section,a residential mortgage debtor shall:
(1) Pay or tender in the form of cash, cashier's check or certified check, all sums which would
have been due at the time of payment or tender in the absence of default and the exercise of an
acceleration clause, if any;
(2) Perform any other obligation which he would have been bound to perform in the absence of
default or the exercise of an acceleration clause, if any;
(3) Pay or tender any reasonable fees allowed under section 406 and the reasonable costs of
proceeding to foreclosure as specified in writing by the residential mortgage lender actually
incurred to the date of payment.
(4)Pay any reasonable late penalty, if provided for in the security document.
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(c) Cure of a default pursuant to this section restores the residential mortgage debtor to the same position
as if the default had not occurred.
Section 405. Prepayment Penalty Prohibited.—Residential mortgage obligations contracted for on or
after the effective date of this act may be prepaid without any penalty or other charge for such
prepayment at any time before the end of the period of the loan.
Section 406. Attorney's Fees Payable.--With regard to residential mortgages, no residential mortgage
lender shall contract for or receive attorney's fees from a residential mortgage debtor except as follows:
(1)Reasonable fees for services included in actual settlement costs.
(2) Upon commencement of foreclosure or other legal action with respect to a residential
mortgage, attorney's fees which are reasonable and actually incurred by the residential mortgage
lender may be charged to the residential mortgage debtor.
(3) Prior to commencement of foreclosure or other legal action attorneys' fees which are
reasonable and actually incurred not in excess of fifty dollars ($50) provided that no attorneys'
fees may be charged for legal expenses incurred prior to or during the thirty-day notice period
provided in section 403 of this act.
Section 407. Confession of Judgment.--(a) As to any residential real property, a plaintiff shall not have
the right to levy, execute or garnish on the basis of any judgment or decree on confession, whether by
amicable action or otherwise, or on a note, bond or other instrument in writing confessing judgment until
plaintiff, utilizing such procedures as may be provided in the Pennsylvania Rules of Civil Procedure,
files an appropriate action and proceeds to judgment or decree against defendant as in any original
action. The judgment by confession shall be changed as may be appropriate by a judgment, order or
decree entered by the court in the action. After the above mentioned original action has been prosecuted
and a judgment obtained, that judgment shall merge with the confessed judgment and the confessed
judgment shall be conformed as to amount and execution shall be had on the confessed judgment. The
parties to the action shall have the same rights as parties to other original proceedings. Nothing in this
act shall prohibit a residential mortgage lender from proceeding by action in mortgage foreclosure in
lieu of judgment by confession if the residential mortgage lender so desires.
(b) Any debtor who prevails in any action to remove, suspend or enforce a judgment entered by
confession shall be entitled to recover reasonable attorney's fees and costs as determined by the court.
(c) Hereafter when any plaintiff has received payment in full for any judgment entered by confession he
shall order the record in the proceeding marked satisfied within thirty days of the receipt thereof, and
shall not require any action on the part of the defendant or any payment by him to cover the cost of
satisfying the judgment.
Section 408. Waivers.--Notwithstanding any other law, the provisions of this act may not be waived by
any oral or written agreement executed by any person.
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•
ARTICLE V
Remedies and Penalties
Section 501. Excessive Interest Need Not Be Paid.--When a rate of interest for the loan or use of money,
exceeding that provided by this act or otherwise by law shall have been reserved or contracted for, the
borrower or debtor shall not be required to pay to the creditor the excess over such maximum interest
rate and it shall be lawful for such borrower or debtor, at his option, to retain and deduct such excess
from the amount of such debt providing the borrower or debtor gives notice of the asserted excess to the
creditor.
Section 502. Usury and Excess Charges Recoverable.--A person who has paid a rate of interest for the
loan or use of money at a rate in excess of that provided for by this act or otherwise by law or has paid
charges prohibited or in excess of those allowed by this act or otherwise by law may recover triple the
amount of such excess interest or charges in a suit at law against the person who has collected such
excess interest or charges: Provided, That no action to recover such excess shall be sustained in any
court of this Commonwealth unless the same shall have been commenced within four years from and
after the time of such payment. Recovery of triple the amount of such excess interest or charges, but not
the actual amount of such excess interest or charges, shall be limited to a four-year period of the
contract.
Section 503. Reasonable Attorney's Fees Recoverable.--(a) If a borrower or debtor, including but not
limited to a residential mortgage debtor, prevails in an action arising under this act, he shall recover the
aggregate amount of costs and expenses determined by the court to have been reasonably incurred on his
behalf in connection with the prosecution of such action, together with a reasonable amount for
attorney's fee.
(b) The award of attorney's fees shall be in an amount sufficient to compensate attorneys representing
debtors in actions arising under this act as provided in subsection (a) of this section. In determining the
amount of the fee,the court may consider:
(1) The time and labor required, the novelty and difficulty of the questions involved and the skill
requisite properly to conduct the case.
(2) The customary charges of the members of the bar for similar services.
(3) The amount involved in the controversy and the benefits resulting to the client or clients from
the services.
(4)The contingency or the certainty of the compensation.
(c) Any time attorneys' fees are awarded pursuant to any provision of this act, a borrower or debtor shall
not be entitled to duplicate recovery of attorneys' fees under this section, sections 407 or 504 or any
other provision of this act.
Section 504. Individual Actions Permitted.--Any person affected by a violation of the act shall have the
substantive right to bring an action on behalf of himself individually for damages by reason of such
10
conduct or violation, together with costs including reasonable attorney's fees and such other relief to
which such person may be entitled under law.
Section 505. Penalties.—(a) Any person who knowingly and intentionally violates the provisions of this
act shall be guilty of a misdemeanor of the third degree.
(b) Any person who violates a provision of this act shall be subject to a fine levied by the department of
ten thousand dollars ($ 10,000)per offense.
Section 506. Enforcement.—(a) When the Attorney General has reason to believe that any person has
violated the provisions of this act, or the regulations promulgated hereunder, he shall have standing to
bring a civil action for injunctive relief and such other relief as may be appropriate to secure compliance
with this act or the regulations promulgated hereunder.
(b) The department may examine any instrument, document, account, book, record, electronic data or
file of any person, or make such other investigation as may be necessary to administer the provisions of
this act. Any person subject to such examination or investigation shall pay the department any costs
associated with such examination or investigation. In connection with any examination or investigation
authorized by this act, the department shall have the power to issue subpoenas requiring the attendance
of, or the production of pertinent books, papers, electronic data or information of any kind which is in
any form by, the officers, directors, agents, employees, or members, respectively, of any person which
the department is authorized, under the provisions of this act, to examine. The department shall have
power to issue subpoenas to any other person or entity of any kind whatsoever provided that the
information from such person or entity is necessary for the enforcement of this act. The department
shall also have the power to question such witnesses under oath or affirmation, and to examine such
books and papers. Any witness who refuses to obey a subpoena issued under this section, or who
refuses to be sworn or affirmed, or to testify, or who is guilty of any contempt after summons to appear,
may be found in contempt of court. For this purpose, an application may be made to Commonwealth
Court or any court of common pleas within whose territorial jurisdiction the offense was committed, for
which purpose such court is hereby given jurisdiction.
(c)If the department determines that a person has violated the provisions of this act,the department may
do any of the following:
(1) Suspend, revoke or refuse to renew any license issued to the person by the department.
(2) Prohibit or permanently remove an individual responsible for a violation of this act from
working in his or her present capacity or in any other capacity related to activities regulated by
the department.
(3) Order the person to cease and desist any violation of this act and to make restitution for actual
damages to any aggrieved person.
(4) Require the person to pay costs associated with any department enforcement action initiated
under the provisions of this act.
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(5)Impose such other conditions by order or otherwise as the department deems appropriate.
Section 507. Effect on Other Acts.--The remedies and penalties provided in this act shall be
supplementary to and shall not repeal or otherwise effect the remedies and penalties provided in any
other act.
ARTICLE VI
General Provisions
Section 601. Regulations.--The Secretary of Banking shall prescribe regulations to carry out the
purposes of this act. These regulations may contain such classifications, differentiations, or other
provisions, and may provide for such adjustments for any class of transactions, as in the judgment of the
department are necessary or proper to effectuate the purposes of this act, to prevent circumvention or
evasion thereof, to facilitate compliance therewith, to insure meaningful disclosure to the user of
residential mortgage credit, and to insure their being supplemental to and not inconsistent with
regulations under the Federal Consumer Credit Protection Act.
Section 602. Construction; Title of Purchaser.--No provision of this act shall be construed to adversely
affect the title of a bona fide purchaser of real estate who purchases such real estate in good faith
without notice of any deficiency in the procedures provided herein.
Section 603. Repeals.--The act of May 28, 1858 (P.L.622,No.557), entitled "An act Regulating the Rate
of Interest," is hereby repealed.
Section 604. Effect on Inconsistent Acts.--If any maximum lawful rate of interest provided for in this act
is inconsistent with the provision of any other act establishing, permitting or removing a maximum
interest rate, or prohibiting the use of usury as a defense, then the provision of such other act shall
prevail. This shall include but not be limited to the provisions of the act of April 8, 1937 (P.L.262,
No.66). Banks and bank and trust companies, subject to the act of November 30, 1965 (P.L.847,
No.356), may charge a maximum rate of interest not in excess of the maximum lawful interest rate
permitted to be charged by a national bank located in Pennsylvania under 12 U.S.C. §85.
(604 amended Oct. 5, 1978, P.L.I 100,No.258)
Section 605. Effective Date.--This act shall take effect immediately except that sections 401, 403 and
404 shall take effect in sixty days. Notwithstanding any other provision of this act, the Secretary of
Banking, immediately upon final enactment of this act, shall determine the maximum lawful rate of
interest for residential mortgages as provided in section 301 of this act, for the month in which this act
becomes effective and for the next succeeding month. Such rates shall be immediately published in the
Pennsylvania Bulletin and shall become effective upon such publication for the respective months.
Thereafter the secretary shall determine and publish the maximum lawful rate of interest for residential
mortgages in conformity with the other provisions of this act.
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NOTICE OF INTENTION TO FORECLOSE MORTGAGE
The MORTGAGE held by (hereinafter we,us or ours)on your property located at ,IS IN SERIOUS
DEFAULT[because you have not made the monthly payments of for the months of, , and, and/or because ].Late
charges and other charges have also accrued to this date in the amount of.The total amount now required to cure
this default,or in other words,get caught up in your payments,as of the date of this letter,is
You may cure this default within THIRTY(30)DAYS of the date of this letter, by paying to us the above amount of,
plus any additional monthly payments and late charge which may fall due during this period Such payment must be
made either by cash,cashier's check,certified check or money order,and made at .
If you do not cure the default within THIRTY(30)DAYS,we intend to exercise our right to accelerate the
mortgage payments. This means that whatever is owing on the original amount borrowed will be considered due
immediately and you may lose the chance to pay off the original mortgage in monthly installments.If full payment
of the amount of default is not made within THIRTY(30)DAYS,we also intend to instruct our attorneys to start a
lawsuit to foreclose your mortgaged property. If the mortgage is foreclosed your mortgaged property will be sold by
the Sheriff to pay off the mortgage debt. If we refer your case to our attorneys,but you cure the default before they
begin legal proceedings against you,you will still have to pay the reasonable attorney's fees,actually incurred,up to
$50.00.However,if legal proceedings are started against you,you will have to pay the reasonable attorney's fees
even if they are over$50.00.Any attorney's fees will be added to whatever you owe us,which may also include our
reasonable costs.If you cure the default within the thirty day period,you will not be required to pay attorney's fees.
We may also sue you personally for the unpaid principal balance and all other sums due under the mortgage.If you
have not cured the default within the thirty day period and foreclosure proceedings have begun,you still have the
right to cure the default and prevent the sale at any time up to one hour before the Sheriff's foreclosure sale. You
may do so by paying the total amount of the unpaid monthly payments plus any late or other charges then due, as
well as the reasonable attorney's fees and costs connected with the foreclosure sale[and perform any other
requirements under the mortgage].It is estimated that the earliest date that such a Sheriffs sale could be held would
be approximately.A notice of the date of the Sheriff sale will be sent to you before the sale.Of course,the amount
needed to cure the default will increase the longer you wait.You may fmd out at any time exactly what the required
payment will be by calling us at the following number: .This payment must be in cash,cashier's check,certified
check or money order and made payable to us at the address stated above.
You should realize that a Sheriffs sale will end your ownership of the mortgaged property and your right to remain
in it.If you continue to live in the property after the Sheriffs sale,a lawsuit could be started to evict you.
You have additional rights to help protect your interest in the property.YOU HAVE THE RIGHT TO SELL THE
PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT,OR TO BORROW MONEY FROM
ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT.[YOU MAY HAVE THE RIGHT TO SELL
OR TRANSFER THE PROPERTY SUBJECT TO THE MORTGAGE TO A BUYER OR TRANSFEREE WHO
WILL ASSUME THE MORTGAGE DEBT,PROVIDED THAT ALL THE OUTSTANDING PAYMENTS,
CHARGES AND ATTORNEY'S FEES AND COSTS ARE PAID PRIOR TO OR AT THE SALE,[AND THAT
THE OTHER REQUIREMENTS UNDER THE MORTGAGE ARE SATISFIED].CONTACT US TO
DETERMINE UNDER WHAT CIRCUMSTANCES THIS RIGHT MIGHT EXIST].YOU HAVE THE RIGHT
TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF.
If you cure the default, the mortgage will be restored to the same position as if no default had occurred However,
you are not entitled to this right to cure your default more than three times in any calendar year.
DEFENDANTS
y EXHIBIT
4 -43--