If you have been struggling to make your mortgage payments and you are headed towards foreclosure, it’s important to understand how this process works in the state of Georgia.

Since Georgia is a “non-judicial foreclosure state”, this means that your lender does not have to go to court in order to proceed with a foreclosure sale on your home. While certain procedures will need to be followed, court approval is not necessary to begin the foreclosure process on your home.

Foreclosure Starts With a Default

When you haven’t been making mortgage payments, your lender can officially default the loan for failure to pay. It’s possible to also default on your property if you have failed to secure the appropriate insurance, or you have not paid your property taxes. Once a default occurs, your timeline towards a foreclosure sale begins.

You will then receive a notice from your lender regarding their intent to foreclose on your property. In Georgia, your lender only has to give you 30 days notice regarding their intent to foreclose on your property. In this notice, your lender must clearly outline how you can remedy the foreclosure, or who to contact to renegotiate your mortgage. This notice must be sent to you by certified mail, and it is important for you not to refuse service.

Notice of Your Foreclosure Will Be Advertised

In the notice you receive, the advertisement that will be posted in your local paper will be included. In order for a foreclosure sale to be valid, this notice must appear in a local paper where the property is located for a consecutive four weeks. The foreclosure sale will then occur at the county courthouse in which your property is located.

If Your Home is Sold in Foreclosure

Once a foreclosure sale is completed, you no longer have the legal right to live in the home. The lender usually accepts the property in lieu of the mortgage agreement, although it’s possible to be sued for the difference between what is currently owed on your mortgage and what the lender receives in payment from the new buyer. If this occurs, you may find yourself in court trying to fight against a deficiency proceeding.

If you have received a foreclosure notice, or are worried about your ability to keep up with your current mortgage payments, it’s time to meet with an attorney who can help you get your financial situation back on track.

Cash for Keys

Again, if your home is sold in foreclosure in Georgia, you no longer have the legal right to live in it. If you refuse to vacate the home, the new owner may evict you from it.

However, this can take time. Some new owners wish to speed up the process with a “cash for keys” arrangement. To encourage a home’s prior owner to leave, they will pay them a certain amount of money in exchange for the previous owner leaving.

That said, your ideal goal is to ensure you never reach a point where this is necessary. If you’re facing foreclosure, do not simply wait and hope that the matter will resolve itself. Take action as soon as possible by contacting an attorney. The sooner you begin exploring your options, the better your chances of keeping your home.

Loan Modifications in Georgia

The fact that you may currently be unable to make your mortgage payments doesn’t necessarily mean you will lose your home. You have several options to consider in these circumstances.

For example, you may be able to work with the holder of your mortgage to modify your loan. This process is very similar to that of applying for a loan in the first place. You will provide a range of financial information, and if you and your mortgage holder can come to an agreement that satisfies all parties involved, you may be able to reduce your monthly payments. Or, you can potentially modify your loan by adjusting its length, principal balance, or interest rates.

That said, it is important to be aware that applying for a loan modification doesn’t always prevent foreclosure in Georgia. It is possible to lose a home in foreclosure while your loan application is still pending.

No one can promise this will not happen. That said, enlisting the help of a qualified attorney can reduce the odds of this occurring. 

It’s also wise to apply for a loan modification sooner rather than later if you believe one will be necessary. If you have reason to believe you will be unable to make your mortgage payments, contact your mortgage holder soon to discuss this option.

Foreclosure in Georgia: You Need to Be Aware of Scams

If you are a homeowner who is facing foreclosure, a company (or multiple companies) may reach out to you claiming they can help you secure a loan modification. Should you trust them?

It’s best to err on the side of caution in this scenario. While there are some legitimate companies that assist distressed homeowners with the loan modification process in Georgia, many companies that directly contact homeowners are actually scamming them. Typically, they’ll claim they can help a homeowner modify their loan, but demand that they pay an upfront fee first. After you pay the fee, they may not deliver on their promises.

When you are afraid you may lose your home and a company tells you they can prevent this from happening, you may understandably wish to believe them. However, you need to be careful in order to avoid exacerbating your already difficult financial situation.

Don’t immediately accept a company’s claims if they approach you. This is another situation in which a lawyer can help. An attorney with a thorough understanding of these matters can review your options and advise you against falling prey to a scammer.

Be aware, there are real options worth considering if you are at risk of losing your home. For example, the federal government’s Making Home Affordable Program is designed specifically to help homeowners when they are unable to make mortgage payments. Research this program instead of working with potential scammers. In general, if someone asks you to pay an upfront fee for assistance in these matters, they’re likely not to be trusted.

You should also be familiar with other common scams. Some scammers manage to convince homeowners to make mortgage payments to them instead of their mortgage holders. Never do this. Unless your mortgage holder directly permits or instructs you to do so, you should not make a payment to any party other than the mortgage holder.

Another common scam involves asking a homeowner to sign over the deed to their home in order to save it. Don’t make this mistake. Once more, if you have any questions about an option that presents itself when you are concerned about losing your home, consult with an attorney.

Foreclosure in Georgia Could be the Result of a Mistake

Mortgage holders are by no means infallible. It’s entirely possible for lenders to make mistakes that result in potential foreclosure.

If you suspect your lender has made such an error, under the federal Real Estate Settlement Procedures Act, 12 U.S.C. Section 2605(e), you have the right to request information pertaining to your mortgage account, and you have the right to request that corrections be made if mistakes are discovered.

This is yet another reason to hire a lawyer. If necessary, a lawyer can help you submit a request for information about your mortgage account. They may review the information and determine if there are any errors. Should they discover any, your lawyer can also assist you in making the needed corrections.

Wrongful foreclosure does happen sometimes. If you’re ever the victim of it, you have options.

Preparing to Meet With a Lawyer in Athens, GA

Your first meeting with an attorney will be more productive if you take certain steps to prepare for it. Before your initial meeting, gather copies of all major documents related to your foreclosure. This may include loan closing documents, mortgage statements, letters, and records of payments you have made.

It’s also a good idea to draft a narrative explaining all details of the situation. For instance, you may wish to explain how your financial circumstances prevented you from making mortgage payments. By preparing a narrative, you can avoid struggling to explain what may be a complex scenario during your first meeting with a lawyer.

Other Options When Facing Foreclosure in Georgia

The manner in which you may resolve the situation if you’re facing foreclosure in Georgia will depend on a range of factors. Again, your attorney will review your case and help you determine the best course of action.

The following are some potential methods of resolution:

Curing the Default in Athens, GA

This is often the simplest way to avoid losing your home in foreclosure. If you have the financial means, you can contact your lender and arrange to cure the default via a cash payment. Although no one can say for certain how flexible your lender will be, they may allow you to pay what you owe over time, or they might give you extra time to cure the default.

Short Sale in Athens, GA

Even if you do lose your home, you can potentially avoid additional financial burdens. For example, you can coordinate with your mortgage holder to arrange for a short sale of your home.

A short sale involves selling your home for less than what’s due on the mortgage. Usually, the buyer is a third party rather than the bank, and all proceeds from the sale go to the lender. In exchange, the lender may forgive the difference, or they may require the homeowner to pay the difference between the price the house was sold for and the initial value of the mortgage.

Filing for Bankruptcy in Athens, GA

Filing for bankruptcy before foreclosure may result in your mortgage debt being discharged. That said, you must know that this won’t always prevent you from losing your home. The lien will remain in place. Thus, if you default on your payments, a lender will still be able to begin foreclosure proceedings.

Deed in Lieu of Foreclosure

This is a fairly drastic measure that’s usually regarded as a last resort when all other tactics have proven unsuccessful or have been determined not to be viable options. With this method, a homeowner can transfer the title of the property to the lender in exchange for being relieved of the responsibilities associated with their mortgage.

There are several reasons why a homeowner may consider this option. First, it allows them to avoid the lengthy foreclosure process. Second, it’s much more private than a foreclosure. If you know you’re going to lose your home, but you don’t want others to know about a foreclosure, you may choose to go this route. Of course, it also relieves you of your financial burden.

Just know that the information here is only meant to help you better understand your options when facing foreclosure in Georgia. It is not meant to tell you which option is best. Remember, a wide range of factors can influence which tactics are most likely to yield the best possible outcome in these types of situations. The smartest way to determine how you should address a potential foreclosure is to work with an attorney.

You may be going through an overwhelming experience right now. However, you must remind yourself that there are a number of ways you may be able to resolve this matter. The sooner you contact a legal professional, the more likely you are to arrive at a satisfying resolution.

How Does Foreclosure Work? A Lawyer from Morgan & Morgan Can Help

Contact the foreclosure lawyers at Morgan & Morgan in Athens, GA to discuss a foreclosure or how to avoid a foreclosure in Athens and Georgia.

 

 

Originally published June 21, 2016 and updated September 28, 2021.