Being familiar with the Georgia foreclosure process is critical to successfully managing your own home foreclosure situation.
Before we get started…
Obtaining an Understanding of the Georgia Foreclosure Process
So, what exactly is foreclosure?
Foreclosure is the legal procedure that lenders employ to reclaim the property that serves as collateral for a loan, usually after the borrower fails to make payments on the loan.
Foreclosure is not a pleasant experience. However, keep in mind that it is not the end of the world.
When you understand how foreclosure in Georgia works, you will be better equipped to navigate the process and come out on the other side as successfully as possible.
The Fundamental Stages of the Foreclosure Procedure
There are a few stages that are critical to the success of any foreclosure proceeding.
Foreclosure procedures varies from one state to the next across the United States.
Property foreclosure can be accomplished through either a judicial sale or a power of sale, which differ from state to state.
Connect with us by calling (404) 855-0944 or submitting a contact form on our website to have us lead you thru the specific foreclosure procedure here in Georgia.
In either circumstance, a foreclosure normally does not go to the courthouse until 3-6 months have elapsed since the last late payment was made. A lender will typically (but not always) send out a large number of reminders to you if you are in arrears — that is, if your payment is overdue or behind schedule.
In the case of judicial foreclosure:
- If you default on your mortgage, your mortgage lender must file a lawsuit in court.
- You’ll receive a notice from the court requesting that you pay the fine.
- Foreclosure will not be avoided if the debt is legal, and you will have 30 days to make payment to court to avert it (and sometimes that can be extended).
- If you do not make your payments throughout the payment period, a judgment may be recorded against you, and the lender may request that your property be sold – usually at an auction.
- Once the property has been sold, the sheriff will serve you with an eviction notice, which will require you to evacuate the premises immediately.
Power of Sale (sometimes known as non-judicial foreclosure) entails the following:
- Mortgage lenders issue you with documents seeking payment; the courts are not obligated to intervene – though the process may be open to judicial review.
- After the prescribed waiting period has elapsed, a deed of trust is created and control of your property is transferred to a trustee, who manages the property.
- Once your property has been sold to the lender at a public auction, the trustee can collect the money from you (notice must be given).
When a property is put into foreclosure, it is necessary to notify anybody who has an interest in the property.
To give an example, any contractors or banks that have mortgages or liens on a foreclosed property are eligible to receive payment from the auction’s proceeds.
What Takes Place Following A Foreclosure Auction?
Following the completion of a foreclosure, the loan amount is repaid from the proceeds of the sale.
If the proceeds from the sale of the property at auction are insufficient to pay off the loan, a deficiency judgment against the borrower may be entered against him or her.
An example of a deficiency judgment is when the bank obtains a judgment against you, the borrower, for the amount of money that is outstanding to the bank on your loan balance after the foreclosure sale.
Some states limit the amount owing in a deficiency judgment to the fair market value of the property at the time of sale, whilst other states allow the borrower to be assessed the whole loan amount as a result of the deficiency judgment.
Due to the fact that every state has its own set of deficiency judgment statutes, here is an excellent resource that lists them by state.
For the most part, it’s preferable to avoid going to a foreclosure auction. You should instead contact the bank or hire an experienced real estate firm such as Georgia Fair Offer to assist you in negotiating discounts off the amount owing in order to prevent having to go through with a foreclosure.
Experienced investors can assist you by negotiating directly with banks to reduce the amount of money you owe in a sale—or perhaps erase it entirely—even if your house is worth less than the amount you owe in the first place.
If you are looking to sell a property in the Atlanta area, we can assist you.
We buy houses in Atlanta, Georgia like yours from customers that need to sell quickly and have a good credit score.
Give us a call anytime (404) 855-0944 or
fill out the form on this website today! >>
Another Foreclosure Resource For Atlanta Georgia HomeOwners: