Over the years, bankruptcy filings in Atlanta have always been high but the trend seems to keep on rising as it becomes tied to the number of Atlanta foreclosures that are also on the rise. The thing that makes the State of Georgia unique is that it’s the only state that doesn’t require a judicial process to declare foreclosure. Once a homeowner fails to pay his monthly dues and the lender decides to declare foreclosure, that property can be sold in as little as 37 days without having to go through the courts for mediation. Usually, the only recourse for homeowners to delay the inevitable is to file for bankruptcy protection to allow them some time to make the necessary payments and to hold on to their property.
For homeowners, declaration of bankruptcy may not even be on the table if you didn’t have to wait until the last minute to coordinate with your mortgage lenders. There may have been some time to arrange for better payment options or other refinancing schemes. As it is, once the Atlanta foreclosure process has been started, it will be harder to convince lenders that you do indeed to make good on your obligations.
As it is now, the government is intent on keeping the foreclosure crisis to a minimum. Atlanta has just received $12.3 Million as financial aid for lenders to maintain the upkeep of their properties to prevent neglect and vandalism and prevent blight properties to the neighborhood and community. The amount may also be used to buy back Atlanta foreclosure homes whether for further selling or for demolition and then converting the land into more affordable housing developments. Other first-time, low to moderate-income buyers may also be extended downpayment and closing cost assistance on their property purchase.
As a result of this financial grant, Atlanta is taking advantage of the situation and hopes to turn the foreclosure crisis around. A change in policy by the Fulton County/City of Atlanta Land Bank Authority removes delinquent taxes from Atlanta foreclosed homes and allows developers to bank properties for up to 5 years while non-profit developers may bank for up to three. This keeps the housing prices affordable for both buyer and developer which may just be the solution needed to hurdle the Atlanta foreclosure crunch.