Stop Foreclosure Today!
Every month we are putting the breaks on the Georgia foreclosure process in the Cobb Area, Fulton Area or Gwinett Area! Sometimes it’s harder with certain lenders, but most of the time we can get it done.
Here in Georgia, today is the day that attorney’s line up at the court house to wrap up the GA foreclosure process and take back more properties than they know what to do with. The banks would have accepted a short sale on most of these properties, but the homeowners either gave up and moved out or they started the short sale process too late and a buyer never came around to start the process.
Please don’t wait until the last minute! We can still probably make it happen and stop the foreclosure process long enough to work out a deal, but we prefer to have some time to make sure we can get it suspended.
So, don’t lose hope! And, DON’T WALK AWAY! The GA foreclosure process can be suspended so we have time to work out a deal.
See if you qualify for a short sale now! - Short Sale Evaluation
FAQs
Frequently Asked Questions. This information is provided for general reference only and is not to be construed as tax or legal advice. Consult your income tax preparer and/or attorney for specific details on your individual situation.
What are the chances I can save my home from foreclosure?
Your chances are really good if you take a proactive step. You need to understand your options and if you choose to hire an experienced Realtor to help you with the possible sale (or short sale) YOU NEED TO ACT FAST! Do not wait before seeking assistance with a sale. In this depressed real estate market, local listings can take up to a year to sell so time is of the essence if you want to get out from under this home. Contact us today to get started!
What options do I have once I’ve received a foreclosure notice?
The most popular options are:
Special Forbearance:
Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. Your may qualify for this if:
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You have recently lost your job or source of income or
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You had an unexpected increase in living expenses or
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You have had serious medical issues
You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
Mortgage Modification
You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
Partial Claim
Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current.
You may qualify if:
· Your loan is at the least 4 months delinquent but no more than 12 months delinquent
· Your mortgage is not in foreclosure and
· You are able to begin making full mortgage payments
When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note and a lien will be placed on your property until the promissory note is paid in full. The promissory note is interest free and will be due if you sell or leave your property or when your mortgage matures.
Short Sale
This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure which damages your credit rating.
You may qualify if:
· The “as is” appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value
· The loan is at least 2 months delinquent prior to the pre-foreclosure sale closing date and
· You are able to sell your home within 3 to 5 months (depending on what your lender agrees to)
An additional benefit to this option is the assistance you will receive with the seller paid closing costs. You will need an experienced Short Sale Realtor to assist you with this option. We can help!
Deed-in-lieu of foreclosure
As a last resort, you may be able to voluntarily “give back” to your property to the lender. This won’t save your house, but if will help your chances of getting another mortgage loan in the future.
You can qualify if:
· You are in default and don’t qualify for any of the other options
· Your attempts at selling the house before foreclosure were unsuccessful and
· You don’t have another FHA mortgage in default
Bankruptcy
Consider this option very carefully with your attorney.
How long does the foreclosure process usually take?
It depends on your state however Georgia is one of the quickest states in the country. A foreclosure in Georgia can be completed in as little as three months.
Who gets the money when the house is sold at auction?
First all real estate taxes are paid. Then the next mortgages are paid (first, second, third, etc.) Next comes any lien holders or attaching creditors. Finally you would get any money left over after all debts are satisfied.
What does “merged debts” mean?
This applies only if you have a second, third or more mortgages! If the lender holding your first mortgage forecloses then the second, third and so forth lenders no longer hold any right or title to your home. Although you will probably still owe them money, they have no security interest in the home nor any right to foreclosure on home.
However, if you buy your own home back at the foreclosure auction, the debt may “merge” back (reattach) to the property, as if the foreclosure never happened.
Note: If you file chapter 7 bankruptcy prior to the foreclosure sale and receive a discharge (released from all debts) you will not owe any money and the lenders will no longer hold a security interest in your home however please contact a bankruptcy attorney for more information and counsel.
What is the redemption period for buying my house back?
This varies by state however Georgia does not have a redemption period once the foreclosure sale has completed.
What’s the difference between a foreclosure and a sheriff sale?
Foreclosure sales are auctions held by the mortgage holder while a sheriff’s sale is held by a lien holder or attaching creditor.
In Summary, these are the key points you need to know about Foreclosure:
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Don’t lose your home and damage your credit history if you can help it
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Call or write your mortgage lender immediately and maintain communication
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Stay in your home to make sure you qualify for assistance
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Arrange an appointment with a HUD approved housing counselor to explore your options
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Cooperate with the counselor or lender trying to help you
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Explore every alternative to losing your home
What is the foreclosure process?
Each state governs the foreclosure process differently. Georgia is a non-judicial state meaning the state does not require lenders to warn the borrower before starting the foreclosure process, although the mortgage or deed of trust might demand this.
What is the process of foreclosure in Georgia?
In quick summary it usually takes several missed payments for the proceedings to begin. If you do not contact your mortgage company and/or their attempts to contact you fail, they will accelerate your loan making the entire balance due within 30 days. When you are unable to meet their demands, first a notice of foreclosure will be sent by the Bank/Mortgage Company via certified mail. Four weeks prior to the foreclosure sale a notice must be published in a local newspaper of general circulation within the county where the sale will be held. The notice must be run for four consecutive weeks.
Then a foreclosure notice must be mailed by certified mail to the borrower no later than 15 days prior to the date of the foreclosure sale. The time period begins the day the letter is postmarked. The notice must be mailed to the address given to the lender by written notice from the borrower. No waiver or release of the rights to notice is valid if it was signed at the same time as the original documents.
The actual foreclosure sale must be made by public auction on the first Tuesday of the month between 10:00 am and 4:00 pm at the courthouse. The trustee open the bidding process, (in some states your lending institution may do this) then either someone purchases the property or reverts it back to the lending institution. Once the property is sold or reverts back to the lender, the eviction process beings. In the state of Georgia, lenders may seek a deficiency judgment.
I would rather sell my home than lose it to foreclosure… is this possible?
Absolutely! This is called a short sale or compromised sale. In certain situations your Bank or Mortgage Company may approve the sale of your property for less than what you owe on it. This is a complicated process and you need an experienced real estate professional to assist you. Yolanda Graham is a real estate professional who specialize in this kind of sale. Feel free to contact us at any time for questions you may have about the process.
What happens with the liens on the property?
In the state of Georgia, foreclosure sales extinguish all other liens insubordinate to the first lien (your first mortgage). The only exception is IRS liens which remain on the property for 120 days after the sale.
What happens if I simply abandoned my property?
Before you simply walk away from your home, we would suggest seeking legal counsel to educate yourself. The ramifications of simply abandoning and forfeiting your property can be severe.
What about the offers of help I receive in the mail?
Your delinquency becomes public record as soon as foreclosure documents are filed. While some offers may be legitimate, none of them have your best interest at heart as they are businesses who make profit off your misfortune. Please do your research on how to avoid scams such as these.
What are these foreclosure scams?
You can usually spot a scam because it sounds too simple or too good to be true.
If you’re selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.
Be especially alert for the following:
Equity skimming: In this type of scam, a “buyer” approaches you offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to them. The “buyer” then collects rent for a time, does not make any mortgage payments and allows the lender to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.
Phony counseling agencies: Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for a fee. Most of the time these services are things you can do for yourself at no cost such as negotiating a new payment plan with your lender or pursuing a pre-foreclosure sale.
The advertisers and publishers are not responsible or liable for misinformation, misprints, or other errors. All information provided is deemed reliable but is not guaranteed and should be independently verified. Information subject to changes and withdrawals without notice.