How to Avoid Foreclosure in Georgia

Foreclosure proceedings can cause severe financial hardship for a homeowner who has fallen behind on mortgage payments. The state of Georgia allows mortgage lenders to place clauses into a mortgage loan allowing the lender to sell property used to secure the mortgage if the loan goes into default without getting permission through the Georgia judicial system. Understanding a few ways to avoid foreclosure in Georgia can help homeowners avoid a stressful situation.

Instructions

1. Contact your mortgage lender as soon as the loan goes into default. Most lenders will not discuss options for avoiding foreclosure while the mortgage loan is still current. Once the lenders grace period has passed without a loan payment being made the lender will be able to work with you to help bring the mortgage current. When contacting the lender on the telephone, always record the name of the representative you speak with along with the date and time of the phone call.

2. Negotiate a repayment plan that is financially feasible. If you do not have a history of late payments and are able to explain why the payment was missed, the lender may be willing to allow you to pay the past due balance in monthly installments. The lender will require you to prove that you have the ability to make these payments in addition to your regular mortgage installment payments

3. Discuss your situation with an attorney who has Georgia foreclosure experience. Hiring an attorney may seem like a drastic measure, but there are situations where the lender is not willing to accept installment payments. Depending upon the situation the attorney will charge an hourly rate for her services with a small retainer due upfront. An experienced attorney may be able to get the lender to add the missed payment to the end of the loan, or convince the lender that an additional monthly payment to resolve the past due amount is the best solution.

4. Have your attorney file an injunction to stop foreclosure. If you and the lender are unable to reach a mutually acceptable agreement, filing an injunction to stop foreclosure will the Georgia superior court will help you avoid a foreclosure sale. The injunction should be filed as soon as the lender sends notice of their intent to sell the property. Georgia law requires the lender to send a notice of an impending foreclosure sale at least 15 days prior to the sale or auction.

5. Attend a hearing to explain why the injunction should be granted and prove that you have gained financial stability. During the hearing you and your attorney must be able to show why the foreclosure was unlawful or why the actions should be reconsidered. Being able to prove that you made reasonable effort to correct the default while proving that you are now able to resume mortgage payments will often persuade the judge to grant the injunction petition helping you avoid foreclosure.

References

• Realty Trac: How to avoid foreclosure FAQs
• Stop Foreclosure: Georgia foreclosure law