While ?Georgia on My Mind? may be the state song, many people living in Georgia are singing to a different tune these days. On the first Tuesday of every month, the only sound heard are the crowds of investors lining up to purchase the latest in a long line of foreclosures. Unfortunately many of those hit hardest by devious mortgage brokers who persuaded homeowners into refinancing their loans into adjustable rates that the homeowners didn't fully understand happen to live in Georgia, which also just happens to be one of the toughest states to fight foreclosure. If you want to stop foreclosure, you will need to remedy the situation very quickly as the entire foreclosure process in Georgia can take as little as two months.
Although court foreclosures are permitted in the state if there is are title problems or the trust deed lacks a certain clause that allows an out of court proceeding, it is through out of court foreclosures that make up the majority of foreclosures
It is here that you must understand a very key difference between Georgia and most other states, which is that although the mortgage or deed of trust may require certain procedures, the state of Georgia does not require the lender to give any advance warning to the homeowner that the foreclosure process has begun.
Of course a homeowner can stop foreclosure by paying off their loan balance in full. But for most people, that is simply not possible. Because the whole process moves so quickly, the penalties add up very quickly. This is party due to the fact that many homeowners just don't realize how serious the situation is and how quickly they will receive a sale date on the property. Many homeowners mistakenly assume that they have time to catch up their payments. This thought couldn't be further from the truth. It is very common for people to be reading their local newspaper and seeing that their home is not only in foreclosure, but that they have a sale date the coming Tuesday. Naturally, this leaves many homeowners in shock and awe of their predicament.
So how do you stop foreclosure? There are a few options at your disposal. If you find out soon enough that you are in foreclosure, you should immediately contact your lender. Explain why you got behind and perhaps they will offer you some sort of repayment plan. Or if you just can no longer afford your mortgage payment, you may be able to avoid the foreclosure by negotiating a short sale with your lender. Of course you will have to know an interested buyer in order to pull this off. Another option to stop foreclosure is to use the equity in your home to obtain a bail out loan. Keep in mind however that these are difficult to obtain and may charge you a high interest rate. Due to your inexperience, you may have to obtain a mortgage default assistance company to resolve the situation for you. Depending on your situation, they may be able to get your lender to put all your arrears onto the back end of your loan or restructure your debt in some other way that is affordable for you. The single most important step is knowing that you have to do something and you have to do it quickly. If you are behind on your mortgage payment and live in Georgia, then time is your enemy.
Foreclosure is one of the toughest things that a person faces in his life and there is a chance of setting it right before things go too wrong. As a matter of fact, the lenders are not really interested in the property but the amount due to them. Hence, when the borrower sincerely tries to stop foreclosure, the lenders are not hesitant to cooperate.
The best and immediate step to stop foreclosure is to approach the lenders and explain to them the situation. The lenders may be in a position to work out a better payment plan or reduce the interest rate or take such similar steps. It would be a good way out if the current financial crisis is a temporary one.
Another way to stop foreclosure is to modify the loan which involves drawing a new document and restating the terms of the older mortgage. The companies that modify the loans may charge some amount of fees for it because the home owner may not be in a position to do it himself since he may not have enough competence to carry out the process.
Refinancing is another way of stopping the foreclosure. The borrower can mortgage with another lender and stop the foreclosure process. When there is enough equity in the property, any private lender would offer sixty five to seventy percent loans to the value of the home. Even bad credit mortgage companies may offer refinancing to stop the foreclosure. Refinancing is possible only when the borrower proves that his income is sufficient to pay the mortgage at 29 percent of his income.
When the borrower has exhausted all the options, then he may resort to the last option of bankruptcy to stop the foreclosure, but this cannot be a permanent solution because under chapter 13 plan, mortgage payment has to be made to some extent. May be, bankruptcy can slow down the process of foreclosure but cannot stop it entirely. Bankruptcy would offer the borrower some amount of time to think of a better strategy to stop the foreclosure.
The last option left before the borrower when every other method has failed to help, is to sell the property which is known as short sale. The money acquired can be used to move to another accommodation, after the debts are cleared off. The mortgager can give back the property title to the lender and thus the lender will take over or repossess the property after executing a deed-in-lieu of foreclosure.
Thus, the credibility of the borrower is saved and the damage to the individual's image can be prevented by stopping the foreclosure. Even if the borrower loses the home, he can at least save his skin.
Both Jayden Adams & Antony White are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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