Payment on account of increased mortgage costs - 26 Pa. Cons. Stat. § 711

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     § 711.  Payment on account of increased mortgage costs.
        (a)  Reimbursement of owner.--Whenever the acquisition of
     property by an acquiring agency results in the termination of an
     installment purchase contract, mortgage or other evidence of
     debt on the acquired property, requiring the legal or equitable
     owner to enter into another installment purchase contract,
     mortgage or other evidence of debt on the property purchased for
     the same use as the acquired property, a legal or equitable
     owner who does not qualify for a payment under section 903(a)(2)
     (relating to replacement housing for homeowners) shall be
     compensated for any increased interest and other debt service
     costs which the owner is required to pay for financing the
     acquisition of the replacement property.
        (b)  Determination of amount.--
            (1)  Compensation for any increased interest and other
        debt service costs shall be equal to the excess in the
        aggregate interest and other debt service costs of that
        amount on the principal of the installment purchase contract,
        mortgage or other evidence of debt on the replacement
        property which is equal to the unpaid balance of the
        installment purchase contract, mortgage or other evidence of
        debt on the acquired property over the remaining term of the
        installment purchase contract, mortgage or other evidence of
        debt on the acquired property reduced to present worth.
            (2)  The discount rate to be used in reducing to present
        worth shall be the prevailing interest rate paid on savings
        deposits by commercial banks in the general area in which the
        replacement property is located.
            (3)  The amount shall be paid only if the acquired
        property was subject to an installment purchase contract or
        encumbered by a bona fide mortgage or other evidence of debt
        secured by the property which was a valid lien on the
        property for not less than 180 days prior to the initiation
        of negotiations for the acquisition of the property.

Last modified: November 27, 2007