Act 6/91 Update

The Pennsylvania Superior Court issued an opinion that sets forth a new interpretation of Act 6.  It may adversely impact some pending consumer foreclosure actions, and it changes the notice requirements on subsequent consumer foreclosure filings.  I have attached the case of Wells Fargo Bank, N.A. v. Louis Spivak, 2014 Pa.Super. 250 (2014) (See link below) in which the appellate court held, “… when a residential mortgagee delivers an Act 6 notice prior to a residential foreclosure, commences a foreclosure action against a mortgagor (“first action”), discontinues that foreclosure action, and re-files another foreclosure action against a mortgagor for the same premises (“second action”), the lack of a new notice prior to the second action is fatal to the second action.”  In other words, you will now need to send a new Act 6 notice if you are filing a new foreclosure case.  You can no longer use the previous letter.   So, prior to restarting a residential foreclosure action in Pennsylvania, if Act 6 applies to the case, a new Act 6 notice is now required.  Importantly, please note that attorney fees and costs cannot be included in these Act 6 letters.  See 41 P.S. §406(3).

Wells Fargo v Spivak 2014 Pa Super 250