Foreclosures in Atlanta Georgia: Understanding the Basics
Foreclosures are a common occurrence in the United States, and Atlanta, Georgia is no exception. Due to economic instability, financial distress and job loss, many homeowners find it increasingly difficult to keep up with their mortgage payments. When they fall too far behind, the lending institution may decide to foreclose and take ownership of the property. In this article, we’ll provide you with a comprehensive guide to understanding foreclosures in Atlanta Georgia. “My Georgia house is going into foreclosure” is commonly searched on Google.
What is foreclosure?
A foreclosure is a legal process by which a lender takes ownership of a property due to the borrower’s inability to make mortgage payments. The foreclosure process typically begins when a borrower falls more than a month behind on their mortgage payments. The lender then files a notice of default, which officially starts the foreclosure process.
Types of Foreclosures in Georgia
There are two types of foreclosure in Atlanta Georgia. A judicial foreclosure and a non-judicial foreclosure.
A judicial foreclosure is a court-administered foreclosure. The court will oversee the foreclosure process, and the borrower will be served with a notice of foreclosure. The borrower has the option to answer the notice in court, and the court will determine the foreclosure outcome.
A non-judicial foreclosure is a foreclosure that occurs outside of court. This process occurs through the power of sale clause that is typically included in mortgage agreements. The Power of sale clause allows the lender to sell the foreclosed property to recover the amount owed to them.
Understanding the Foreclosure Process
The foreclosure process in Atlanta Georgia generally takes about six months to a year. The process is as follows:
1. Notice of Default: Once a borrower falls more than a month behind on their mortgage payment, the lender files a Notice of Default, which is sent to the borrower by registered mail.
2. Notice of Sale: The lender will then file a Notice of Sale after 30 days from the Notice of Default. The notice of sale will include the date, time, and place of the auction.
3. Auction: The property is then auctioned to the highest bidder at a public auction.
4. Possession: The new owner is granted possession, and the previous owner must vacate the property.
Avoiding Foreclosure
If you’re a homeowner facing mortgage default or foreclosure in Atlanta Georgia, there are ways to avoid foreclosure. You can hire an experienced foreclosure defense attorney, negotiate directly with the lender to modify your loan, pursue a short sale of the property, or apply for a loan refinancing. The key is to act quickly and seek expert assistance to achieve the best possible outcome.
Conclusion
In conclusion, foreclosure is a painful process for any homeowner. However, understanding the basics of foreclosure can help you make informed decisions to avoid foreclosure. By taking action early, seeking assistance from professionals, and being fully informed of your options, you can mitigate the impact of foreclosure and keep your home.