An increasing number of homeowners in the state of Georgia are losing their homes due to default on the mortgage loans. The number of Georgia foreclosures like those of the entire country are significantly larger than ever before. For homeowners who are in a position of losing a home, the emotional and financial toll is huge. The homeowner may be facing other economic problems due to loss of employment, illness or escalating costs of living.
When Defaults Occur
There can be many reasons why borrowers are having financial difficulties and are unable to make full payment on the mortgage balance. The initial loan may have been poorly structured. The purchase price of the property and the amount borrowed may have been unrealistically high so that the borrower would not be able to make regular payments without giving up other necessities of life, including food, clothing and transportation.
The United States is in a recession. Some areas have been hit harder than others. Georgia homeowners may be suffering from cuts in wages or hours. They may be laid from the job or their employer may have closed the doors. Under these circumstances, financially stressed homeowners may be frozen by fear and unable to make the decision to act to at least identify their options.
What Happens in Foreclosure?
Georgia law allows for either a judicial foreclosure or a non-judicial foreclosures. The non-judicial form is more common, but it also requires to be specifically allowable under the mortgage contract terms or the deed of trust. When the borrower defaults on the loan, the lender must file a preliminary notice of the circumstances as a form of warning to pay or else. The notice includes the amount of default, the property address and the name of the lender.
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.
When Defaults Occur
There can be many reasons why borrowers are having financial difficulties and are unable to make full payment on the mortgage balance. The initial loan may have been poorly structured. The purchase price of the property and the amount borrowed may have been unrealistically high so that the borrower would not be able to make regular payments without giving up other necessities of life, including food, clothing and transportation.
The United States is in a recession. Some areas have been hit harder than others. Georgia homeowners may be suffering from cuts in wages or hours. They may be laid from the job or their employer may have closed the doors. Under these circumstances, financially stressed homeowners may be frozen by fear and unable to make the decision to act to at least identify their options.
What Happens in Foreclosure?
Georgia law allows for either a judicial foreclosure or a non-judicial foreclosures. The non-judicial form is more common, but it also requires to be specifically allowable under the mortgage contract terms or the deed of trust. When the borrower defaults on the loan, the lender must file a preliminary notice of the circumstances as a form of warning to pay or else. The notice includes the amount of default, the property address and the name of the lender.
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.
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