If you’re facing the foreclosure of your home, it can be an anxious time. In Georgia, you have good reason to be. Atlanta also has the fourth-highest share of mortgage delinquencies.
This article will show you what you need to do to stop a foreclosure in your home in Georgia.
What Is The Foreclosure Process?
The foreclosure process begins when the bank sends you notification that your home will be repossessed in a matter of days.
The actual foreclosure typically occurs on the steps of City Hall and is administered by the sheriff of the presiding county of where the property is located.
For example, to witness or take part in a foreclosure auction in Fulton County, you’d need to be on the Fulton County Courthouse steps as the sheriff’s deputy begins the process by listing properties.
By federal law, foreclosure auctions must be advertised in a newspaper of record. That’s why it’s important to check newspaper listings, especially papers that specialize in real estate listings.
In addition to newspapers, foreclosure listings can also be found:
- Legal publications
- Courthouse steps
Now that you know what to expect at a foreclosure auction, let’s talk about how to avoid it.
How Can I Stop My Home From Foreclosure?
Here are some ways you can stop your home from being foreclosed on.
1. Reach Out To Your Lender
The #1 way to avoid foreclosure is to contact your lender and see if you can renegotiate your mortgage. This may involve setting up a payment plan to catch up or agreeing to make a balloon payment.
The lender may have tried to get you to work something out earlier, but now that you’re more motivated, they may be willing to listen to what you have in mind.
2. Apply For Deferred Payments
A payment deferral moves your past-due payments to the end of your loan and brings your account current. To qualify for the deferred payment option, you typically have to:
- Contact your mortgage lender and inquire about deferred payments.
- Show them that you are able to resume regular payments after the deferred payments process.
3. Apply For Forbearance
Sometimes, the lender doesn’t want to grant you deferred payments due to your history. That’s when it’s time to ask about a forbearance plan.
Many homeowners don’t like forbearance plans because they may typically end with you owing a balloon payment at the end of the process — but it doesn’t have to end that way.
If you are able to apply and be accepted into a forbearance plan, make sure to tell the lender that you still don’t have the money to make the back payments.
The lender’s options at this point usually are to grant you a deferred payment plan or let you refinance at a more favorable rate. Let’s talk about that.
4. Refinance Your Mortgage
Because lenders ideally don’t want to get stuck with stale properties due to foreclosures, they’d rather you continue to make your mortgage payments.
One to ensure that you continue to pay is if you refinance your mortgage. This is a preferable option for lenders who know that homeowners in financial trouble.
5. Loan Modification
Similar to a refinance, a loan modification typically lowers your payments so that you can afford to begin paying your mortgage again.
Even before you miss a payment, a lender usually will be willing to set you up with a loan modification because they know that you’re still interested in paying for your mortgage.
Lenders don’t mind making loan modifications if they see that you’re sincere about repayment. In many cases, the loan modification amount will include a small fee each month to help the lender recoup what was lost during the months you didn’t pay.
6. Sell Your Home
The last resort in many foreclosure cases is for the distressed homeowner to sell their property. While this is not an ideal situation — namely because it may hurt your credit a bit — it is a viable way to get out of a mortgage you’ve fallen behind on.
If selling your home before it goes into foreclosure is your only option, make sure to try to get rid of it before it officially goes into the foreclosure process. Once a home enters the foreclosure process, the bank is presumed the owner — not you.
That means you lose all the bargaining power you previously had and you may not see a dime of the money from the sale.
Final Words
Foreclosing on a home can be a demoralizing ordeal and is not for the faint of heart, but these things do happen.
Always try to work with your mortgage lender before you get in arrears so that losing your home is never an option on the table.
To recap, here are the steps you can take to avoid having your home foreclosed on.
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