Atlanta Foreclosure Facts to Remember

Some of the facts of foreclosure are good to know.

You have rights that must be adhered to by the lenders and you may have options that can help you.

Facing foreclosure in Atlanta? Below are some of the basic facts about avoiding and handling foreclosures.

The first and most important fact to remember when you face foreclosure is that you have rights. The banks or lenders have specific rules that they must follow when intending to foreclose on you.

You must be given specific time periods in which to try resolving the payments in arrears, for example, before the actual foreclosure period begins.

A pre-foreclosure letter, sometimes called ‘right to cure’ letter, will be sent to you after you miss a number of payments. The letter will outline what you owe, any fees that are to be paid, and the time period in which you have to catch up before they file the foreclosure.

In some states the lender must file a lawsuit before starting the foreclosure process. Foreclosures are generally judicial in the following states: Connecticut, Delaware, District of Columbia (sometimes), Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana (executory proceeding), Maine, Nebraska (sometimes), New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma (if the homeowner requests it), Pennsylvania, South Carolina, South Dakota (if the homeowner requests it), Vermont, and Wisconsin.

In these states the lender must file a lawsuit against you asking that the court give them the opportunity to take the property back if you can’t pay the mortgage. In these states you will have a little more time to get money together if you wish to save the house. This is usually called ‘redemption rights’ and allows you to stop the foreclosure proceedings and resume the mortgage once again.

Foreclosures are usually nonjudicial in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia (sometimes), Georgia, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico (sometimes), North Carolina, Oklahoma (unless the homeowner requests a judicial foreclosure), Oregon, Rhode Island, South Dakota (unless the homeowner requests a judicial foreclosure), Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.

Even though Georgia allows a nonjudicial foreclosure process, you should be aware that the foreclosure could be judicial. Banks can sometimes choose to foreclose judicially if there are problems with the title to the home, a flaw in the mortgage or deed of trust, or to pursue a deficiency judgment. 

If you find yourself falling behind on your payments, there is sometimes a solution through the lender directly without going to another agency or the government for help. Lenders and banks have been more flexible and willing to help their borrowers who are struggling with their current mortgage contract.

Solutions include modifying the loan with a lower interest rate, changing the loan over to a fixed rate mortgage if it’s an ARM, adjustable rate mortgage, or even reducing the principle in some cases.

Lenders are swamped with foreclosures these days, and unfortunately do to Covid-19, it looks like it may even get worse. Because of this, your lender would much rather avoid putting another foreclosure on their books and may be more likely to work with you.

You Have the Right to Sell Your House

You have the right to sell the property and pay off the mortgage. With a foreclosure looming, many people are choosing to sell their homes and move to satisfy the lender obligation and save their credit. It seems to be a more viable option for those that know they can never keep up with the mortgage. It’s better that they make the decision to sell and move instead of having the bank repossess the house and evict them.

Though losing your home is never pleasant and it can be quite traumatic, especially in the face of financial distress. Selling your home to a real estate investor to avoid foreclosure is less dramatic than having people parked in front of the house taking pictures in anticipation of the foreclosure auction.