Understanding the foreclosure process in Georgia is an important part of navigating your own home foreclosure. It’s imperative that you make the right moves now, as it can save you a lot of headache in the future.
Before we dive in…
Understanding the Foreclosure Process in Georgia
What in the world is foreclosure anyway?
Foreclosure is a legal proceeding employed by lenders to reclaim a property that serves as collateral for a loan, typically when the borrower defaults (or is behind) on payments.
Although facing foreclosure can be daunting, it is essential to understand that it is not the end of the world.
Being well-informed about the foreclosure process in your particular state, Georgia, can equip you with the necessary tools to navigate it successfully and emerge on the other side in the best possible shape.
The Basic Stages of A Foreclosure
The foreclosure process typically involves several significant stages, which may change depending on the state or community. In fact, foreclosure procedures differ across the country.
Two common ways that states employ to foreclose on a property include judicial sale or power of sale. If you are facing foreclosure in Lagrange, we are here to help.
Whether you prefer to call us directly at 706-918-9133 or reach out through our contact page, we can guide you through the specific foreclosure process in your area. It is worth noting that in most cases, a lender will not take legal action until the borrower has missed 3-6 months of payments, and they may send multiple notices to inform the borrower of their arrears.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the local or state court system.
- You’ll get a notice from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender may serve you with legal papers demanding payment, and the foreclosure process may not necessarily involve the courts, although it may be subject to judicial review.
- Once the designated waiting period has expired, a deed of trust is prepared, and the control of your property is transferred to a trustee.
- The trustee has the authority to sell your property to the lender at a public auction, subject to giving notice beforehand.
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction. This can often times string the process out a little bit longer as this gets cleared up.
What Happens After A Foreclosure Auction?
Once a foreclosure is finalized, the proceeds from the sale are used to pay off the remaining loan balance.
In some cases, the sale of the property may not generate enough funds to cover the outstanding loan, resulting in a deficiency judgment against the borrower. This judgment allows the bank to seek the remaining funds owed to them after the foreclosure sale.
The amount owed in a deficiency judgment can vary by state, with some states capping it at the fair value of the property at the time of sale and others allowing the full loan amount to be assessed.
It is best to avoid a foreclosure auction whenever possible and instead negotiate with the bank or seek assistance from a reputable real estate firm like Flagship REI to help you negotiate discounts and avoid carrying out a foreclosure.
Experienced investors can also assist in negotiating with banks to reduce or even eliminate the amount owed, even if the property is worth less than what is owed. If you need to sell a property near Lagrange, we are here to help you.
Long story short, there are many ways you can avoid a foreclosure and you should try to avoid it at all costs. Don’t let this rough patch in your life affect your for years to come. Investors can help you avoid the foreclosure which will help you in the future when you buy another home.
We buy houses in Lagrange Georgia like yours from people who need to sell fast.
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