Georgia Foreclosures: Alternatives For Those In Default

In most states across the United States, more and more homeowners find that they are unable to meet their financial obligations. When the mortgage payment goes into default, the lender has the option of taking the property back under a process known as foreclosures. Georgia foreclosures are increasing at rates similar to the rest of the country.

When Defaults Occur

A failure to make the mortgage payment may be caused by one or a combination of many factors. Often, the loan is one that should not have been made in the first place. The dream of home ownership might have caused some unwise decisions about the amount of loan that could be managed by borrowers. When borrowers must make a choice between eating and living in less expensive lodgings, there may be a decision to let the mortgage payment lapse.

Because of the economic condition of the country, borrowers may be suffering from layoffs, reduced hours or lowered pay. The reduction in income can mean the loss of not only the home, but of everything. For someone with a family, the idea of being homeless can be overwhelming. Many homeowners faced with the prospect of foreclosure or loss of a home due to default simply do nothing because they are frozen by stress, panic, and uncertainty about which way to turn.

How Does Foreclosure Work?

The state of Georgia allows for either judicial or non-judicial foreclosure. In a judicial foreclosure, the lender starts the process by filing an official document with the court. The non-judicial foreclosure is more common, but can only be done when there is a clause in the mortgage contract or the trust deed to allow for foreclosure without a court ordered resolution. The notice papers must contain all the relevant information.

The borrower must catch up the past due balance within thirty days, or the next level of foreclosure is reached. Some mortgages are written so that default causes the full balance of the loan to become payable. If the default is not cured, the next step in the process is to publish a notice of sale. It must appear each week for the month preceding the sale. The foreclosure sale happens at the county courthouse on the first Tuesday of the month.

Borrower Choices

The borrower can either pay the amount of default, sell the property during the pre-foreclosure stage, or allow the property to go back to the lender. The important thing to do, regardless of which choice is made is to identify the options. Government and lender programs today may allow additional loan assistance so that there is time to work with the lender to restructure the loan.

In other instances, it may actually be better for the borrower to sell the property, thereby improving the entire financial picture. This is particularly true when the house price was too high and the mortgage too large to begin with. With the drop in housing prices, there may be additional housing choices at a much more manageable price. For those facing Georgia foreclosures, it’s important to be proactive as well as realistic about options.

Locate your Ga foreclosure now and buy it for a new home. There are a lot of Ga foreclosures that are offered at cheap prices. Head online now and begin your search.