Process After the Foreclosure in Athens and Georgia

Once the foreclosure is complete, the property’s new owner will contact you as the former owners. They do this to let you know how long you have in the home and will tell you when they want you to vacate. This isn’t the only option that they may offer, though. This overview will cover some of the other options a new owner may present you with after a foreclosure, as well as the ways an attorney can help you potentially stay in your home longer. One thing is for sure, though: the new owners are not allowed to show up one day and put you out on the street with no warning. There is no state in which this is legal.

 

What Happens If You Don’t Leave Your House in Athens, GA?

If you do not leave when asked by the new owner, you are referred to as a “tenant at sufferance,” and the new property owner can then begin the eviction process to remove you from the property.

Prior to eviction, there is a “demand for possession” usually sent by certified mail. There will be a deadline for you to move out by, which may be just a few days from when you got the letter. If you do not move out by that date, the new owner has the option to file for eviction with the local Magistrate court. A local law enforcement officer will serve the eviction papers to you. Once you have been served, you have seven days to file an answer with the court. If you file an answer, there will be a hearing set in the court within a few weeks. At the hearing, you will plead your case in front of a judge and they will make a decision. Remember, this is just about the eviction and not a time to talk about the foreclosure.

Finally, unless you’re able to show that you shouldn’t be evicted, the judge will enter a writ of possession and will send a Sheriff to come remove you and your belongings from the house. If you get to this point, it is best to go ahead and move out of the home because the movers will not care about your property and may simply throw it on the street.

It’s understandable that you may be reluctant to move out of your home after a foreclosure. However, it’s best to do all you can to avoid an eviction. An eviction will hurt your credit score, making it very difficult for you to secure a loan or find a landlord willing to rent to you in the future. Instead of biding your time and drawing the process out, consult with an attorney if you believe you have grounds to remain in your home. Depending on the circumstances, they may be able to help you reach an agreement with the new owner that satisfies all parties, or they may be able to otherwise demonstrate why you still should have the right to remain in your home.

 

Preparing to Move Out Prior to Foreclosure in Georgia

If your home’s new owner isn’t willing to grant you much time to stay in a home after the foreclosure process is complete, you may have to move out very soon to avoid being evicted. Again, although an attorney may be able to help you, it’s best to prepare for all potential outcomes.

During the eviction process, make sure you’re preparing to move out. Steps to take ahead of time include the following:

• Packing all necessary items
• Finding a new place to live
• Preparing to hire movers or rent a moving truck
• Financially preparing to pay rent, if necessary

Don’t skip these steps in the hopes that you won’t have to move out. If you do lose your home, you’ll need to be ready to move sooner rather than later. The new owner might be lenient, giving you a reasonable amount of time to make preparations to move, but no one can promise this will be the case.

 

Avoiding Foreclosure in Athens and Georgia

If you do lose your home to foreclosure, it can be difficult to justify staying in it past the deadline established in the demand for possession letter the new owner will send. In unique situations, there are defenses you and your attorney can potentially employ to show why you should be permitted to remain in your home longer, but those cases are somewhat rare.

You’re better off enlisting the help of an attorney before the foreclosure process is complete. An attorney may be able to help you avoid foreclosure in the following ways:

 

Negotiating With Lenders

Homeowners should understand that lenders don’t necessarily want to take their homes away from them. Lenders simply want to ensure they’re paid what they’re owed. If they can avoid the lengthy and costly foreclosure process, they will.

Thus, most lenders are willing to negotiate with homeowners in these circumstances. With the assistance of a qualified bankruptcy and foreclosure attorney, you can possibly convince a lender to reduce your mortgage payments. Or, if you can show that you will be receiving an influx of money in the near future, your lender may agree to let you stop making payments for a period of time.

 

Petitioning for a New Mortgage

A qualified and experienced lawyer can review your mortgage and determine whether you have grounds to petition for a new mortgage. With a new mortgage, you may be more capable of making payments, allowing you to keep your home as a result.

 

Refinancing

Refinancing your home can be another option to avoid foreclosure. However, it may also be a complex process that involves coordinating with a number of parties, filing paperwork, and more. An attorney can handle these tasks on your behalf.

 

Citing the Truth in Lending Act

The Truth in Lending Act is a Federal law that requires creditors and lenders to provide accurate and thorough information to those entering into credit transactions with them. In some cases, when a lender attempts to foreclose on a home, they’re doing so in violation of this law. If this is happening to you, an attorney can help prove it.

 

Filing for Bankruptcy

Filing for bankruptcy may not seem ideal to a homeowner, but sometimes, it’s the best way to stop a foreclosure. Your attorney can review the details of your case and advise you on this topic.

 

Selling Your House

Selling your house fast is another option to consider when facing foreclosure. Naturally, you’ll still have to move out of your home if you go this route, but doing so can potentially help you avoid future consequences that may negatively impact your credit, such as being evicted. Once more, if you’re not certain whether this is the right option for you, an attorney can discuss it to help you better understand why you should or shouldn’t consider selling your home before the foreclosure process is complete.

If the foreclosure proceeds and the lender sells your home, you could be entitled to proceeds from the sale. So, if your $200,000 home sells for $300,000, you could be due some money. The lender isn’t entitled to keep any funds above the balance owed other than the fees associated with the actual foreclosure process. Speak to your Athens foreclosure attorney to learn your rights in this case.

Of course, if the house sells for less than you owe, the lender can file a judgment against you that requests you pay the remainder of the loan amount. This is another instance where your foreclosure attorney can help you determine your rights and responsibilities.

 

Factors Influencing How Long You Can Stay in a Home After Foreclosure in GA

If you lose your home to foreclosure in Georgia, a variety of factors may influence how long you can stay in it. They include the following:

 

Your Relationship With the New Owner

Hiring an attorney when facing foreclosure is wise for many reasons. One is the simple fact that an attorney may help you preserve a relatively civil and positive relationship with a lender throughout the process. Homeowners facing foreclosure are naturally frightened of losing their homes, and thus can sometimes react to lenders in a manner that damages their relationship with them.

Maintain a reasonably positive and professional relationship with a lender throughout the foreclosure process. They may be more inclined to essentially “give you a break” after the process is complete. No promises can be made, but it might be possible to negotiate with them, reaching an agreement that allows you to stay in your home long enough to establish a new living arrangement.

 

The Foreclosure Rate

When foreclosure rates are high, lenders may be foreclosing on numerous homes. This can create a backlog that slows down the process. When this happens, they may simply be too busy to proceed with sending a demand for possession letter or evicting you right away. However, because there’s no way to determine whether this will happen, it’s not something you should count on. Instead, protect yourself by assuming that you will need to leave your home sooner rather than later if you lose it to foreclosure.

 

Bankruptcy

In addition to potentially helping you avoid foreclosure altogether, filing for bankruptcy can sometimes allow you to stay in your home for a little bit longer if you’ve been served with an eviction notice after a foreclosure. Again, because you may not be sure whether filing for bankruptcy is a good idea or not, it’s best to consult with an attorney. Their familiarity with the nuances of these cases will help you make the best possible decision.

 

What You Should Know About Loan Modification

When you negotiate with your lender, you can request a loan modification. If your lender is receptive to creating a modified loan, you should be aware that a modification can negatively affect your credit scores. A modification doesn’t pay off your mortgage. It changes the terms and conditions of your current mortgage.

Loan modification can only be obtained through your current lender because they have to approve any changes. The things that can be adjusted include:

• Changes in loan terms—an extension of your term will lower your monthly payment while giving you longer to repay the loan
• Reduction in interest rates—interest rates fluctuate, and if they are lower now than when you originally got your loan, you could modify your loan to get the lower rate which could lower your monthly payments
• Changes in loan structure—if you have an adjustable interest rate, you could negotiate a new fixed rate. Fixed-rate structures give you a more predictable monthly payment.
• Forbearance of principal—the lender could agree to push some of the principal back for you to repay at a later date. This might reduce your payments or make it, so you can better pay your mortgage. Principal forbearance modifications are rare.

Lenders do not have to accept your modification request. Getting a modification is often more complicated than refinancing the mortgage entirely. In order to qualify for a modification, you must show that you have a hardship, and every lender has different standards for qualifying for a modification.

 

When Should You Consider A Loan Modification?

Sometimes a refinance makes sense, and other times a loan modification makes sense. When does a loan modification make sense?

• An underwater loan—if you owe more than your home appraises for. Lenders won’t refinance for more than the appraised value. If you missed payments early in your loan or if property values are decreasing, then your loan can go underwater. A modification could be beneficial if you have an underwater loan.
• A principal reduction is needed—refinancing doesn’t reduce the amount of your mortgage principal, but a loan modification might help you.
• You’ve gotten behind on monthly payments—typically, a lender will not refinance if you are behind on payments. Some refinance loans require a minimum of six on-time payments in a row before you can apply. If you can’t catch up on your payments, you might consider a loan modification.

 

More About Refinancing

When you refinance, you are replacing the mortgage you have with a new mortgage. Refinancing allows you to change terms like interest rates and payment amounts. If you have equity in your home, you can use that to get cash from your home.

 

Reasons to Refinance

There are various reasons that people refinance. Here are a few of them:

• To lengthen the term of the mortgage. A longer-term also means a lower monthly payment. If you’ve suffered a decrease in income, this could help you avoid foreclosure proceedings.
• To shorten the term of the mortgage. If you choose to shorten your term, you will see an increase in monthly payments, but you will save money in interest over the course of the loan.
• For a lower interest rate. Interest rates change with the ebb and flow of the economy. If rates are now lower than when you initially bought your home, you can lock in a lower rate by refinancing.
• Change the kind of loan you have. Changing the kind of loan you have could allow you to cancel private mortgage insurance. You need to have at least 20% equity in your home to discontinue mortgage insurance. This is beneficial if you currently have an FHA loan and want to change to a conventional loan.
• To get cash out through refinance. With this type of refinancing, you draw from your home equity to pay other expenses. Basically, you refinance for more than your balance, and the lender gives you the difference as a cash loan. These loans are only available if you have equity in your home. Their rates are typically lower than other kinds of loans, and if you are using the equity to pay off other debts, you will save money in the long run.

When you refinance, you can go to another lender if you want. You aren’t stuck using the same lender you originally used.

 

When Refinancing Makes More Sense Than Modification

There are times when refinancing makes more sense than a loan modification. For example, refinancing is easier than a modification if you aren’t underwater. If you want to take cash out through your home equity, then you need a refinance. A modification doesn’t allow you to take out cash equity.

 

Other Options After a Foreclosure in Georgia

Although no one can guarantee how a new owner will proceed once the foreclosure process is complete, there are instances when new owners don’t demand that former owners relinquish possession of a home. Or, they might at least offer some compensation to a home’s former owners upon requesting that they move out. Examples of other options they may consider include the following:

 

Cash for Keys Deal

The eviction process can be costly and drawn-out. Often, new owners of a property want to avoid it. Thus, it’s not uncommon for lenders to offer “cash for keys” deals to former tenants or homeowners after a foreclosure.

A cask for keys deal is precisely what it sounds like: a lender (or whoever the new owner of a property may be) will offer payment to a home’s former owners in exchange for access to and possession of said home. They typically do so to make the home’s previous owners more inclined to move out in a timely manner. However, it’s once again important to remember that there’s no guarantee a lender will offer this deal. It may not be advisable to remain in a home after a demand for possession letter has been sent in the hopes that the new owner will offer payment.

 

Leasing

Sometimes, the new owner of a home will lease the home to the previous owners. They may do so for an indefinite period, or they may do so for a set period in order to give them more time to find a buyer or new tenants to whom they’ll rent the home out on a more long-term basis. This often happens when an investor purchases the property.

 

The Right of Redemption in Georgia: What You Need to Know

There are various reasons your home may be foreclosed in Georgia. They don’t all involve failure to pay your mortgage. For example, if you failed to pay property taxes, you could lose your home. Luckily, you may be able to get it back in certain circumstances thanks to Georgia’s “right of redemption” law.

Under this law, after a tax sale is complete, a former homeowner has 12 months from the date of the sale to reclaim their home. They can do so by paying off what’s owed. Additional fees may sometimes be involved.

 

Ask a Foreclosure Lawyer, How Long Can I Satay in My House After Foreclosure?

As you can see, there are a few ways that foreclosure is handled and each will result in a different amount of time in the home. If you are facing a home foreclosure, contact us at Morgan Lawyers. We can help simplify the process, and may even be able to help you stay in your home.​

This article was originally published on May 20, 2016 and updated on August 3, 2021.

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