Unfortunately, many people often find themselves in Mortgage payments, leading to Foreclosure. However, it’s crucial not to panic and remember that there are different ways to deal with this situation.

If you’re facing foreclosure in Georgia, it’s essential to understand the state’s unique procedures and your rights as a homeowner. In this article, we will cover the four key things you need to know about the foreclosure process in Georgia, as well as strategies for stopping it.

Whether you are amid foreclosure proceedings or want to prepare for the possibility, this guide will provide valuable insights to help you navigate the process. 

Does the foreclosure process in Georgia significantly differ from other states?

Foreclosure can be a stressful experience, and the process can vary significantly depending on the state you’re in. In Georgia, the foreclosure process is non-judicial, and the property is sold through an open public bidding process.

4 important things about foreclosure in Georgia

Here are the four key things you should know on how to prepare for the possibility of foreclosure in Georgia.  

Georgia allows for non-judicial foreclosure

In Georgia, the foreclosure process is non-judicial, meaning that it can be carried out more quickly and easily than in many other states. The bank must follow specified out-of-court procedures outlined in state law before selling the property at a foreclosure sale.

You have a 30 days’ notice 

The foreclosure process in Georgia moves quickly, so acting as soon as possible is essential. As soon as you miss your first payment, the law of Georgia allows your creditor to send you a notice of intent to foreclose. This notice usually gives you 30 days to pay off the entire loan. However, if you can’t provide the full amount, your home will be sold at a public sale.

The dispossessory process can be very quick

The mortgage holder normally buys the house after the foreclosure sale. However, other buyers or investors may also make an offer. Once the foreclosure deed is prepared, the buyer can contact the occupants of the property and demand possession. If the residents refuse to leave, the buyer can initiate a dispossessory process in court to remove the occupants and their belongings.

Bidding is open to the public

During the foreclosure sale in Georgia, public members are allowed to bid on the property. However, it’s common for the foreclosing bank to be the only bidder. The bank may place a “credit bid,” meaning they bid the amount of the outstanding mortgage debt. If the bank is the successful bidder, they receive a credit in the amount of the mortgage debt.

How can you stop it?

The foreclosure situation in the United States has been alarming for many years, as many homeowners owe more on their mortgages than their homes are worth.

However, there always exists a solution to this problem if you work hard enough. Filing for Chapter 13 Bankruptcy can be an effective way to stop the foreclosure process and reinstate your mortgage.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is considered the ideal solution if you face foreclosure in Georgia.

Under this chapter, individuals with regular income can pay a trustee for 3 to 5 years to address their debts, including curing the arrearage on their mortgage over the payment method. This can free up funds to ensure future mortgage payments are made on time.

This type of bankruptcy will not eliminate your mortgage, but it will wipe out around 90% of your other debts and will make it easier for you to manage your home loan payments.

Another essential thing to know is that filing for bankruptcy also triggers an automatic stay from the court, which orders your creditors to halt all collection attempts immediately. This means that your lender cannot foreclose on your house, and if they have already begun the process, they should stop immediately.

Our experienced bankruptcy lawyers at DebtStoppers have helped countless homeowners in Roswell and throughout Atlanta to stop foreclosure through Chapter 13. We offer a free debt evaluation, so don’t hesitate to call or text us at 678-673-2142 to schedule an appointment.

With our assistance, you can protect your home and secure a brighter financial future. Contact DebtStoppers today to get started!