A settlement, or workout agreement does not change the terms of the loan, but allows the homeowner some time to get caught up on the loan. This is typically negotiated with the bank or its attorneys. Typically, they will ask for some money up front, and additional payments over a period of time, in addition to the regular payments. The bank’s attorney would need to agree to postpone the foreclosure sale while these payments are being made.
In Pennsylvania, the homeowner can cure the default – get caught up on their payments. Doing this will, except in unusual circumstances, avoid foreclosure. The amount needed can be obtained from the bank or their attorneys. The amount increases over time: not only are there additional monthly payments, but the court costs and attorney fees increase, particularly when the property is listed for sale.