Few things are more devastating to families than the prospect of foreclosure. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent.
For local GA families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
How Long Do I Have?
If you fall behind on mortgage payments, the lender cannot simply evict you.
A federal mortgage servicing law that went into effect in 2014 prohibits the bank from starting the foreclosure process in most cases unless the loan is more than 4 months or 120 days past due.
After the 120 days in the foreclosure timeline in Georgia, the bank can pursue foreclosure under state law. This 4 months waiting period gives homeowners the opportunity to apply for a loss mitigation option, such as a loan modification in Georgia.
When You’ve Received a Notice of Sale
Have you have received a notice of sale already? You will need to pay the missed mortgages payments. If you can’t, your house will go into the auction process in 30 days. Let’s assume you’re facing foreclosure and you aren’t able to make the payments. That means that it is time to find alternative options for how to stop foreclosure in Georgia.
To play it safe, it’s best to partner up with the best foreclosure defense attorney in Atlanta that you can find
Is foreclosure the end?
Fortunately, you have options available to you here in GA — perhaps more options than you realize. There are many strategies that help for foreclosure in Atlanta; these are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this blog post, you’ll read about 4 ways that you can avoid foreclosure (there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure and reducing the pain and frustration that you’re facing, while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
Filing for bankruptcy, though, is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors. And, a bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. So this shouldn’t be your first line of defense!
Strategy #3. Short sale help for a foreclosure in Georgia
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s fast — in some cases, you can sell your home in as little as a week! That’s also because it’s local: You can get help for foreclosure in Georgia since organizations like We Buy Any House Atlanta help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options.
Strategy #4. Selling to an Investor
Real estate investors are sometimes willing to team up with homeowners to help them keep their homes — either permanently or temporarily. You can usually find reputable investors through trustworthy real estate agents, attorneys (especially foreclosure and bankruptcy attorneys), and perhaps even local banks.
We buy houses in Atlanta from homeowners facing foreclosure almost weekly.We strive to help as many homeowners out of foreclosure as possible.
How Selling to an Investor Works
You simply fill out the form on this site. We come out to the property as quickly as we can to gauge the repairs needed. We give you an offer. If you accept, we submit the paperwork to the attorneys. Roughly 14 days later, we are able to close on the house. It’s really that simple.
Consequences of Selling to an Investor
When you have 30 days to sell and move out of your house, things move at lightning speed. You will be in a whirlwind for a month or so. The benefit is that the sale of your house is taken care of. We handle all of the paperwork. You get to focus on things that matter. Like finding a new place to live and packing. Other than that, just show up at the closing table. We hope to be the calm in the storm.