Understanding the Foreclosure Process in GA

Exploring the foreclosure process in GA is a crucial step in managing your own home foreclosure.

But first, let’s delve into…

Understanding the Foreclosure Process in GA

What is foreclosure anyway?

Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.

Foreclosure is a challenging time, but it’s important to remember that it’s not the end of the road.

Understanding how foreclosure in GA operates provides you with the tools to navigate the situation effectively and emerge from it in the best possible way.

The Essential Steps in a Foreclosure Process

Understanding the key stages of a foreclosure is crucial for all parties involved.

Foreclosure procedures can vary significantly across states nationwide.

States employ two primary methods to foreclose on a property: judicial sale and power of sale.

For tailored advice on navigating the foreclosure process in Lawrenceville, GA, reach out to us at (678) 469-6585 or explore our contact page.

Typically, foreclosure proceedings escalate to the court system after 3-6 months of missed payments, with lenders issuing multiple delinquency notices during this period.

Under Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Under Power of Sale (or Non-Judicial Foreclosure):

  • The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
  • After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The trustee can then sell your property to the lender at a public auction (notice must be given).

When undergoing any type of foreclosure process, it is crucial to inform all involved parties regarding the property. This includes notifying contractors or banks with liens on the foreclosed property, who have the right to claim proceeds from an auction.

What Happens After A Foreclosure Auction?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

After a foreclosure sale, a deficiency judgment may be issued by the bank against the borrower for any remaining funds owed on the loan amount. In some states, the deficiency judgment is limited to the fair value of the property at the time of sale, while other states may hold the borrower liable for the full loan amount.

Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.

Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at keller williams realty atlanta partners to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.

Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

If you need to sell a property near Lawrenceville, we can help you.

We buy houses in Lawrenceville GA like yours from people who need to sell fast.

Give us a call anytime (678) 469-6585 or
fill out the form on this website today! >>

 

Another Foreclosure Resource For Lawrenceville GA HomeOwners:

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