Georgia is a non-judicial foreclosure state. That means the lender can complete the foreclosure process quickly without involving the court. The notice of the default is often the first official step of the process. Your options are limited when you receive a default notice in a non-judicial foreclosure state. There are some ways to avoid the foreclosure process in Georgia. In this article, we’ll discuss:
- Your options when you receive a default notice
- Foreclosure prevention strategies available at this step
- Local foreclosure laws
Non-Judicial Foreclosure Process Timeline Georgia
As per the federal laws, the lender must wait for 120 days before sending you the notice of default. You must be 120 days late with mortgage payments before the bank can begin the non-judicial foreclosure process. You have these four months to explore loss mitigation options.
After the initial 90 days, you’ll get a breach letter. The letter explains your loan is in default, and you have a specific deadline to cure the default. Failure to do so can result in the acceleration of the debt and the sale of your property.
Thirty days before foreclosure, you’ll get a notice of “intent of foreclosure.” The notice of sale follows this document.
What are your options in this case? How can you stop foreclosure now?
You can reinstate your loan until five days before the sale. The best option is to pay the pending installments and make your mortgage current. The house is in the pre-foreclosure phase because it was not possible to reinstate the mortgage. It would be best to take a second look at your finances. Can you take a second loan to pay off missing payments? Is it possible to sell a luxury item? You can talk to a financial counselor for help.
Chapter 13 Bankruptcy
Filing Chapter 13 bankruptcy can stop foreclosure in its tracks. However, it is mandatory that you receive credit counseling, within 6 months of filing the bankruptcy. Chapter 13 bankruptcy allows you to keep your house. A court-appointed trustee will help you. Your additional income will be used to pay off your debts in the next 3-5 years.
Deed in Lieu of Foreclosure
It’s an alternative to foreclosure. You are voluntarily giving your home to the bank. While you cannot keep the property, deed in lieu of foreclosure is less strict on your credit report. You can negotiate terms with the bank. The lenders are happy with this option because a foreclosure is an expensive option. They can let you stay in the home for some more time before you move out.
Sell to an Investor
A reputable cash buyer can help you with your situation. Going through a foreclosure is a tough situation for the families involved. You can avoid the entire trauma by selling your home to a direct buyer before the foreclosure. It will be a private sale of your house for a fair cash price. A pre-foreclosure sale allows you to settle the matter privately. You can get another mortgage when your finances are stable again. Furthermore, you can avoid the foreclosure auction.
We actually can help you negotiate with your mortgage company and get a quick sale on your house. That way, a foreclosure doesn’t show up on your records which could limit you from buying a house again.
If you have received a default notice, give us a call right now at 404-590-6538 and we can talk over your options. We’re a small, local home buyer in Woodstock, GA.