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38 A REVIEW OF CONTESTED FORECLOSURE APPEALS IN PENNSYLVANIA As we move into 2023, questions abound about what foreclosure volumes will look like in 2023. In Pennsylvania, the volume of foreclosures increased in 2022 over 2021, and the number of contested fore- closure cases likewise also increased. However, the number of cases decided on appeal by the Superior Court of Pennsylvania in foreclosure matters has continued to decline since the time of COVID-19. is article examines several legal issues decided on the appellate level, as well as an outlook for the new year as to what issues are likely to make their way to the appellate courts in 2023. In Pennsylvania, mortgage foreclosure appeals in 2022 declined from 2021. In 2022, there were only 15 opinions issued by the Superior Court of Pennsylvania about mortgage foreclosure issues, and of the 15 opinions, only two were deemed "precedential." is stands in contrast to pre- COVID-19, when the appellate court routinely issued between 30-40 foreclosure opinions per year. Between September and December of 2022, zero appellate opinions were issued by the Supe- rior Court relating to foreclosures. Amongst the issues that continued to arise in 2022, contested foreclosures are standard defenses related to standing or issues on motion for sum- mary judgment, where there are allegations that questions of fact exist. is article touches on a few other issues of note. ere has been continuing discussion in var- ious cases on the effect of a prior open mortgage foreclosure under the same mortgage. Based upon this developing area of case law, a lender must ensure that any prior open foreclosure cases on the docket are dismissed prior to initiation of a new case, as a trial court may hold that it lacks the jurisdiction to hear the new case. ere was a key case relating to collection of claimed sale costs by a Sheriff from an executing creditor before the Sheriff would issue the deed to the lender. e Sheriff collected these funds in error, and the funds should not have been paid out by the Sheriff to the junior third-party creditor, the Commonwealth of Pennsylvania. is case dealt with the ability of the bank (the executing creditor) to recover those funds that were erroneously paid over to the state. In Bank of New York Mellon v. Cabrera, 412 EDA 2021 (Pa. Super. 2022), decided April 5, 2022, the appellate court ruled that the trial court in the foreclosure lacked the subject-matter jurisdiction over the bank's attempt to recoup the funds. A significant published case was related to a reverse mortgage and the applicability of various FHA regulations and loss mitigation options. e case known as Bank of America v. Scott, 2022 Pa. Super. 39 (2022), was decided on March 3, 2022, and it dealt with some significant issues in trial practice related to trial motions in limine, as well as the overall effect of the federal regulations that guide FHA reverse mortgages. While the foreclosure volume in 2022 is still below that of the pre-COVID-19 level, it appears that the level will continue to rise in 2023, though not yet achieve the pre-COVID-19 level. With more foreclosures, there is a likelihood of more contested matters and more appeals. It would appear that there should be more decisions ren- dered by the appellate courts affecting mortgage foreclosures in 2023. Issues that are expected to arise relate to: further evidentiary issues, business record issues, continual standing issues, and a fur- ther discussion of the effects of prior open fore- closures. Cases may focus on the effects of federal regulation and loss mitigation requirements prior to the initiation of foreclosure cases. Stephen M. Hladik is a Partner at Hladik, Onorato & Federman, LLP. Formerly a Deputy Attorney General in charge of the Harrisburg office of the Pennsylvania Bureau of Consumer Protection, Hladik brings a broad range of experience to his mortgage foreclosure, bankruptcy, tax sale, and UDAP legal practice. A graduate of the Pennsylvania State University, Hladik obtained his law degree from Widener University, with honors, where he served as Internal Managing Editor of the Law Review. Hladik gained significant expertise in lending law enforcement while serving in the Pennsylvania Attorney General's Bureau of Consumer Protection, handling UDAP, FDCPA, RESPA, and TILA cases. Legal Industry Update By: Stephen M. Hladik