Understanding the Foreclosure Process in Georgia

Are you delayed in your mortgage payments and fear that it won’t take long now before your house becomes foreclosed? It’s normal to feel lost and helpless, especially when dealing with this much value. But don’t get too carried away, because sometimes, all you need to do is prepare. This means knowing what to expect in a foreclosure process and looking for other ways out.

To start, here are basic things you need to know about foreclosure in Georgia and how you can cushion your losses.

Types of Foreclosures

As identified by the Housing and Urban Development Council, there are two (2) types of foreclosures: Judicial and Non-Judicial. A court order is needed in a judicial foreclosure before a home foreclosure is executed. In this case, if you fail to pay your mortgage according to the terms on your contract, your mortgage lender has the responsibility to file a claim in court. They cannot immediately remove you from the house without a court order.

On the other hand, in a non-judicial foreclosure, your mortgage lender has the right to remove you from the house and foreclose it without a court order.

What Type of Foreclosure Does Georgia Follow?

In the State of Georgia, mortgage lenders exercise the non-judicial foreclosure process.

1. Issuance of Breach Letter

Once you fall behind your payments, your mortgage lender will initially send you a notice of default, also known as a breach letter.

2. Action from Borrower

Once you receive the notice, you are given a specific time period to pay your balance. Otherwise, if you don’t respond to the letter, the lender has the right to start the foreclosure process, considering that the loan has been overdue for more than 120 days.  There are cases, though, when the foreclosure process starts earlier.  This happens when there is a violation in the due-on-sale clause or when your lender is in a joint foreclosure petition with another lienholder.

3. Setting of Sale Date

The lender will determine a target sale date.  This will be the basis of the entire foreclosure process schedule. 

4. Issuance of Notice of Intent to Foreclosure

Thirty (30) days before the target sale date, the lender will send you a Notice of Intent to Foreclose. At the same time, they are responsible for making a public announcement of it, usually through the official local newspaper. This allows transparency and informs other people who may have succeeding claims on the house. 

5. Issuance of 10-Day Notice About Legal Fees

This notice is usually sent together with the Notice of Intent to Foreclose.  This letter informs you that you need to pay the loan’s principal and interest to avoid paying legal fees.

6. Window for Reinstatement

You can stop the foreclosure process if you can pay the overdue amount, plus corresponding charges. However, reinstatement is only possible when your security deed specifies it or when your home loan is of high value.

7. The Foreclosure Sale

Once the documents are ready, the lender can now hold an auction. Foreclosed homes are sold through an auction open to anyone willing to make either a credit bid or a cash bid.

8. Borrower Moves Out of the House

After the foreclosure sale, you’ll have to move out of the house to give way to the new owner. Otherwise, the new owner will demand possession and start legal eviction afterwards.

Can You Sell a Foreclosed House?

You can sell the house even after you’ve received the Notice of Intent for Foreclosure. You are legally allowed to sell it as long as you do it before the Foreclosure Sale. Don’t forget to inform your lender in advance so they can give you time. Lenders welcome these requests because it means you can now pay what you owe on the mortgage after the sale, and they wouldn’t have to go through the tedious auction process.

When selling your home during pre-foreclosure, you need to find a buyer fast. With local markets fluctuating all the time, it may be difficult for you to sell your home on the market, especially when it’s a buyer’s market. If you find yourself in this situation, wherever you are in Georgia, you can contact us at Spire Property Solutions.

We are a professional home buying company that has helped Georgia homeowners sell their homes fast. We buy houses in Georgia for ash, and we do it without all the frills. We take care of the entire process, so you don’t have to get stressed even more. If you’re thinking of making a pre-foreclosure sale, get in touch with us at Spire and let’s see how we can help you out. You can reach us at (678) 318-1801.

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