Bankruptcy Prof Blog

In most states across the United States, more and more homeowners find that they are unable to meet their financial obligations. When the mortgage payment goes into default, the lender has the option of taking the property back under a process known as foreclosures. Georgia foreclosures are increasing at rates similar to the rest of the country.

Causes of Defaults

Financial problems can happen in the best of circumstances. When there is not enough income to make the mortgage payment there can be many reasons. The mortgage loan might have been unrealistically high due to an inflated housing price. The amount of the loan could have been beyond the ability of a borrower to repay except under exceptionally high estimates of income, or failure to recognize that the payments were scheduled to increase dramatically in a few months.

The recession may have caused the wage earner to lose their job, have hours cut or sometimes even take a wage cut. When there is a loan payment that requires more income than is available in the household, a borrower must sometimes accept failure to afford the home in order to eat. In such circumstances, it’s important to act and plan to make the best of the situation.

What is the Process?

The state of Georgia allows for either judicial or non-judicial foreclosure. In a judicial foreclosure, the lender starts the process by filing an official document with the court. The non-judicial foreclosure is more common, but can only be done when there is a clause in the mortgage contract or the trust deed to allow for foreclosure without a court ordered resolution. The notice papers must contain all the relevant information.

The borrower has thirty days to pay the past due amounts and bring the loan payments current. In some instances, default causes the entire loan balance to become due and payable. If the default is not cured, the foreclosure process continues with publication of a sale notice. Sale information must appear four times in the month preceding the sale date which is the first Tuesday of each month.

Choices for the Borrower

The borrower can either pay the amount of default, sell the property during the pre-foreclosure stage, or allow the property to go back to the lender. The important thing to do, regardless of which choice is made is to identify the options. Government and lender programs today may allow additional loan assistance so that there is time to work with the lender to restructure the loan.

If the borrower decides to sell the property or accept foreclosure, the financial situation may be improved. Selling the property doesn’t have as serious of an impact on the credit score as foreclosure does. For borrowers laboring to meet the cost of a too high mortgage payment and home loan, choosing less expensive housing may be the best options. Those facing Georgia foreclosures should realistically access their options and take action to make the best of the situation.

Locate your Ga foreclosure today and get it for a new home. There are a lot of Ga foreclosures that are offered at low prices. Go online now and begin your search.