Options to Stop Foreclosure
If you’re behind on your mortgage payments and cannot catch up, foreclosure may seem inevitable. However, there are several options available for you to explore before it comes to that.
Talk to the Loss Mitigation Department of your Lender, Bank or Mortgage Holder. There are a number of options they may provide to avoid foreclosure.
Loan Modification, changes the original terms of the promissory note to reduce the monthly payments, usually while lengthening the term and changing the interest rate. Eligibility terms vary be lender too lender, however many requests get denied by lenders or if approved end up costing the homeowner more than the original mortgage. If approved do not pay a day late in the trial period or you will be back in foreclosure.
Forbearance is a short term solution that allows you to temporarily stop making payments or reduce your payments due to approved financial hardship. Lenders will typically have a strict critia of who will qualify. It’s important to note if approved that interest will still accrue during this time, and you’ll need to make up the missed payments eventually, sometimes the complete amount at once. Admin fees and interest apply.
Refinancing your mortgage may be an option but only if you have equity in your home and good credit. This involves taking out a new loan to pay off your existing mortgage and refinancing your house at a different rate or term. However if you are in a foreclosure situation it’s going to be difficult to qualify for a new loan. So do not depend on this option during the foreclosure process, but it may make sense prior.
Short Sale is when the homeowner sells the property for an amount that is less than owed on the mortgage. The lender must agree to the short-sale and to a deficiency waiver to ensure your debt is paid in full. There may even be authorized relocation expenses. Short-sales tend to be a lengthy and paperwork intensive transaction. You will need an experienced short-sale negotiator to help you through the process and we can help you with this. Short-sales will not significantly hurt your credit rating or your ability to purchase a new home in the future so it can be a good option.
Deed in lieu is an arrangement where you turn ownship of your home to the lender to avoid the foreclosure process. The lender must agree take ownership. The disadvantage of this to the homeowner is they lose the property and equity in it plus there will be a negative impact on their credit rating although not as bad as a foreclosure. It will stay on your credit record for four years.
Bankruptcy is a legal proceedure initiated when a person or business is unable to pay outstanding debts or obligations. Individuals may file Chapter 7 or Chapter 13. Chapter 7 provides protection from creditors while organizing the disposal of unsecured debt through the liquidation of your assets. Chapter 13 allows individuals to qualify for a debt repayment plan under court supervision which is subject to legal and admin fees typically over 3-5 years. This will allow you to keep your property but only while you are able to keep to the new repayment plan. Should you be unable to pay the new payment plan your lender is almost certain to apply for the property to be removed from bankruptcy protection and placed back into foreclosure. Bankruptcy will severely damage your credit rating for 7 years Chapter 13 and 10 years Chapter 7. Protection doesn’t cover certain debts, such as student loans, child support, or government owed taxes. It will also damage your chances of securing future credit or buying a home again.
Selling your property and right-sizing to a less expensive property may be a smart move, as it allows you to pay off your mortgage and any other debts, and potentially if you have equity walk away with some cash. Also most importantly no foreclosure on your credit record. Best to do this before any foreclosure process has started because that will give you time to sell and find new accommodation without the pressure of a pending forclosure sale date. However if you are already in the foreclosure process, you will need to sell quickly to a well-qualified buyer who has the finance and ability to close before the forclosure auction date. At this stage timing is critical, do not delay a minute to maximize the chance of stopping the foreclosure. To sell you will need a payoff amount from the lender inclusive of any admin or legal cost accrued and details of the foreclosure attorney handling your case. We can help you identify potential buyers.
If you’re facing foreclosure, don’t wait until it’s too late. Contact us today to learn how we can assist you with foreclosure information, provide foreclosure help, and offer foreclosure assistance. We are here to help you avoid the negative consequences of foreclosure.
THE FORECLOSURE SALE PROCESS IN GEORGIA:
UNDERSTANDING YOUR RIGHTS AND RISKS
Georgia, being a non-judicial foreclosure state, is allowed to initiate and complete foreclosure by a lender without the intervention of a court unless the loan documents specify it. In a non-judicial foreclosure, the lender can sell the property without going through the court system. In a judicial foreclosure, the sale is supervised by the court.
The following is what you need to know about a typical foreclosure process in foreclosure process in Georgia:
1) With you loan documents will be a security deed to secure the loan debt. These are executed by the borrower and contain a power of sale clause, allowing the lender to accelerate the entire balance of the debt.
Find your loan documents and read them so you will know what your lender will do if you don’t make payments.
2) The loan is secured by the real property, your home. If you fall behind on your mortgage typically by 60 to 90 days the your lender is likely to issue a notice of default to the borrower with a deadline by which they must cure the default by paying all past due amounts, including principal, interest, and any applicable fees or charges.
3) If the borrower fails to cure the default within the lender’s specified timeframe, the lender will then send a notice of sale to the borrower and other parties with an interest in the property, such as lien holders.The written notice should be registered with the local county court and sent to the borrower with the lenders having proof of successful delivery 30 days before the foreclosure sale date.
4) Legal notice of foreclosure is then published and advertised for four consecutive weeks in an official newspaper. This contains a legal description of the property, the borrowers name, the original deed to secure the debt and the name of the current party that holds it. The notice also includes information about the date, time, and location of the auction.
5) The foreclosure sale day is the first Tuesday of every month at the courthouse steps of the same county where the real estate is located. On the day of the auction, interested buyers gather at the designated location and bid on the property. Either the lender or the highest cash-in-hand third party bidder will take title of the property and becomes the new owner.
What our clients say …
William
StockbridgeMy foreclosure date was set for the first Tuesday in November, and it was already the end of October. I got into this situation due to a death in the family and some illnesses, leaving me with no way to keep up with payments. I had already undergone a loan modification that I couldn’t afford, and the bank was demanding full payment. With no options left, my son introduced me to Gary. Gary bought the house and closed within a week. He then rented the house back to me for a month, giving me time to find a new place and organize my move. The bank was paid in full, so there was no foreclosure on my record and no impact on my credit. Thanks to Gary, I was able to have a fresh start in a new place.
Chuck
Lithia SpringsThe house belonged to my sister, who had passed away earlier that year. The place was a real mess when we finally got vacant possession; it was infested with roaches. To make things worse, her bank filed a foreclosure notice and sent it to me as her sole heir. We had the house appraised, but due to the necessary repairs, it was worth less than what was owed—we were upside down on the mortgage. When I talked to Gary, he explained that the house would qualify for a short sale, which was a great relief. I worked with his team to provide the bank with all the required paperwork, and within a few short months, the short sale was complete. Goodbye foreclosure, goodbye repairs, goodbye liability.
Larry
JonesboroI inherited the house from my mother and decided to sell. I was recommended to Gary by my probate attorney. Initially, I agreed to sell to another investor because they offered a higher price, but once under contract, they tried to renegotiate downwards. So I canceled and sold to Gary, and I'm glad I did. His team cleared the house, ensuring certain items went to local charities as I had requested. The process was very smooth, with Gary, the probate attorney, and the closing attorney all working together. It made things easy during a stressful time.
Tiffany
CarroltonMy mother had recently passed and left our family home to me and my sister. We had grown up in that house, and my sister still lived next door, so there were a lot of emotions tied up there. We wanted to sell the house to someone who would take care of it. Gary agreed to buy and completely renovate the property. He was true to his word—the house turned out beautifully and made us all proud. Well done, well done.
Patricia
JonesboroWe were going through probate—my husband had passed, and I wanted to sell the house and move closer to my daughter. The problem was, my husband hadn’t left a will, so the probate process was taking some months, and we weren’t sure when it would be complete. I agreed to a contract with Gary while we were still in probate, on the understanding that within a week of being out of probate, we would close the sale of the house. Gary coordinated with his closing attorney and lined up everything to meet the timeline. The process worked perfectly.
Seth
DallasI was living and working out of state when my mother passed. Handling probate, the house, and all its contents fell to me while I was miles away. We needed confirmation from the court that we could sell the house, but once that happened, the closing was within a few weeks. I just took a few personal items from the house and left the rest for Gary and his team to sort and clear. I just couldn’t have managed all this myself.
John
FayettevilleWe owned that house for well over 20 years—my kids grew up there, and there were a lot of memories. When I had to move a family member into a nursing home, I didn’t want the hassle of repairs and moving all the house contents. Gary and his team did a great job handling all that and made the sales process easy for me.
Emanuel
StockbridgeThe house was an investment property that I needed to sell fast. Within two weeks, it was sold, and I got my money. Sweet!
Phillip
DouglasvilleOur buyer dropped out, leaving us in a difficult position as we already had another property under contract. The new house was in the county on 5 acres—perfect for our horses—and we didn’t want to lose it. Gary worked with his attorney and somehow managed to close on our original sale date. So everything worked just fine.
Howard
AtlantaThe plan was to renovate the house and keep it as a rental. However, we had problems with the general contractor and his crew, so we had to replace them with another team. We were finally almost complete when there was a break-in, and all the copper was stolen, and the plumbing was damaged. I was done—I just needed to sell, get some money back, and move on! Gary bought the house, closed in a few weeks, and I never saw or worried about that house again.
