Real Estate
Georgia Foreclosures: Choices For Homeowners Facing Foreclosure
August 29, 2010 by Herb Stankowitz · Leave a Comment
As in other sections of the United States, Georgia foreclosures have seen a dramatic increase during the last two years, with additional increases projected. Homeowners faced with the probability of losing their home are faced with tremendous financial as well as emotional stresses. In many instances, the economic problems are brought about by other issues, including job, illness and increased prices on necessities of living.
Why Loan 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 borrowers are notified that there is a period of thirty days in which the default of payments can be corrected. Some mortgages are written so that if there is a default on payment, the entire mortgage loan becomes due and payable–not just the past due amount. In the event of non-payment of the default, the foreclosure process begins with publication of foreclosure sale notices. Four weekly notices must appear in a local newspaper prior to the sale, that happens on the first Tuesday of each month at the county courthouse.
Options for the Borrower
The first choice that can be made by the borrower is to correct the default and take the property out of pre-foreclosure. Another choice is to sell the subject property during the thirty day period and find other housing. The final choice is to allow the foreclosure process to play out. Some recent government help has been made available that may affect options open to the borrower. The borrower is responsible for identifying and using such options.
In some financial situations, borrowers under the threat of Georgia foreclosure might be better off to sell the distressed property. This will relieve the borrower of the loan that was too high or poorly structured. The borrower may be able to retain enough equity to allow for obtaining a home with more manageable loan amount and payment terms. With Georgia foreclosures, the worst action that can be done is to do nothing. It’s important to educate oneself about choices and to set up an action plan.
Find your Ga foreclosure now and buy it for a new home. There are a lot of Ga foreclosures that are offered at cheap prices. Go online now and begin your search.
categories: Georgia foreclosure,Georgia property,Georgia real estate,Georgia real property,foreclosure,real property,real estate,legal,make money,investing,personal finance,finance
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