How To Avoid Foreclosure In Georgia

Are you dealing with a foreclosure situation in Georgia and would like to learn more about the foreclosure process? This article walks through the steps of the foreclosure process and the associated timelines. The foreclosure process can be very scary and confusing, particularly in Georgia where the process can occur very quickly.

One of the most important things to remember is that if you are behind on mortgage payments, the lender will not simply evict you because you miss one payment. In most cases, the lender will not initiate foreclosure proceedings until you are 60-90 days delinquent on payments.

However, this can often be avoided if the borrower reaches out to the lender to discuss loss mitigation options such as a loan modification, forbearance agreement or extended repayment plan. If those options are not available, other options like a short sale or deed-in-lieu of foreclosure, allow a borrower to move on without going through the official foreclosure process.

What Is Non-Judicial Foreclosure?

Georgia, unlike some other states, permits non-judicial foreclosure. This means that the lender may foreclose without appearing in court or filing suit. This allows the process to move quickly, and in some cases is faster than a tenant eviction. Georgia law requires that a borrower be provided notice at least 30 days before the foreclosure sale date, making it very important that the borrower take steps to remedy the situation. The lender will publish a notice of foreclosure in the local paper for four consecutive weeks, sell the home at a public auction on the first Tuesday of the month, and the homeowners will be subject to the foreclosure eviction process.

Another thing to keep in mind is that if the foreclosure sale does not cover the remaining balance on the loan, the lender may pursue a judgement against the borrow for the difference. We’ve seen several borrowers have to contend with that situation following a foreclosure action which just creates additional hassles and headaches.

What Happens After The Foreclosure Sale?

Following the foreclosure sale, the new homeowner will begin the eviction process to force the borrower out of property. This process can take anywhere from 10-30 days depending on the county. Once the borrower has been served an eviction notice, the tenant must vacate the property and remove all personal belongings by that date or they will removed by the sheriff.

How to Stop Foreclosure in Georgia?

To summarize, here are a few tips on how to stop the foreclosure process.

Delay Notice of the Filing

When you receive the notice of default, contact the lender immediately to discuss what loss mitigation options might be available.

Deed-in-Lieu of Foreclosure

A deed in lieu agreement is an arrangement where you give your mortgage lender the deed to your home. This may help you avoid having a foreclosure show up on your credit report, however all lenders don’t offer this option and some will not consider it if it is in their best interest to foreclose on the property.

Bankruptcy

Reach out to a reputable local attorney to see if a chapter 7 or chapter 13 bankruptcy is appropriate for your situation. The downside of bankruptcy is that it can stay on your credit history for up to ten years.

Sell your house fast to a local investor

At Blue Arrow Capital, we can help in these situations by buying the home outright, taking over payments or even bringing the mortgage current and allowing you to move on with your life. Call us at (678) 400-0883.