Foreclosures occur on houses and properties of all sizes and values. In Georgia, unlike some states, mortgage companies are allowed to foreclose without going through the Court. The foreclosure process begins when the bank declares you to be in default and sends you a certified letter. The foreclosure should be advertised in the local paper once a week for a full calendar month. The foreclosure sale will take place on the first Tuesday of the following month. This gives homeowners at least a month to determine what course of action to take.
Many people facing foreclosure want to retain ownership of the home and can afford to make monthly payments, but due to a slip up they fell behind and cannot catch up. There are several options which our attorneys can review with you. If the bank will accept it, you could attempt to modify the mortgage, refinance, or save enough money to cure and reinstate the mortgage. Often, the bank or the foreclosure attorney will not work with you and in this situation the easiest solution is to force the bank to allow you to stay in the home and catch up the mortgage through a chapter 13 repayment plan (link to chapter 13).
In some rare situations, the mortgage company may erroneously being a foreclosure. You should consult an attorney quickly because you may need to file for an injunction to prevent the looming foreclosure sale.
A fair amount of our clients actually want to let the home go back to the bank. If the family has undergone changes or the household income has declined, letting the foreclosure go through can be a very smart option. Our attorneys can review how this would affect you and advise you on how to proceed.
Foreclosure deficiencies are something many residents are unsure about. In Georgia, banks must file a special lawsuit to “confirm” with the Court that a deficiency exists after the foreclosure sale. In other words, if the bank does not receive a payoff of the debt from the foreclosure auction, the bank can pursue you for the balance! If the bank chooses to do this, the remaining balance if often in the tens of thousands of dollars. Our attorneys have successfully defeated foreclosure confirmations and saved our clients from large judgments.
If you are facing a foreclosure or considering walking away from your mortgage, please consult one of our attorneys about your options.