About Foreclosure Process in Georgia
When you purchased your home, most likely you took out a home loan. Two parties are involved in the buying home side: you (the mortgagor) and the lender (the mortgagee). You own the home, and the mortgagee holds a lien on the property until the mortgage is paid off. In the event that you cannot make your mortgage payments, this security interest (i.e. a lien on the property) gives your lender the right to foreclose and auction off your house and keep the proceeds in order to recover its investment and assume ownership of the property. The process by which the lender assumes ownership is called Foreclosure. In case your property cannot be sold for what is owed, a deficiency judgment could be pursued against you. Both a foreclosure and a deficiency judgment could seriously affect your ability to qualify for credit in the future.
Some states use a deed of trust, and that serves the same purpose as a mortgage but actually involves more parties: you, the lender, and a third party who holds the temporary title on the home until the full balance is paid. In this foreclosure process, the trustee - the third party - will be selling your home when you become delinquent. The difference between deeds of trust and the mortgages is that if there is a mortgage, the foreclosure has to be processed through the court system and with a deed of trust, the foreclosure will be done through a court system, but mainly with the help of a third party - the trustee.
In Georgia, the Foreclosure process begins when the homeowner fails to make payments of the money due on the mortgage at the appointed time. This may be due to any of the reasons mentioned in How to Stop Foreclosure section and more. This is a way to enforce payment of the debt secured by a mortgage and take and sell the estate. The goal for you, borrowers, and lenders is to seek a compromise - for you to keep the home, the lender to keep receiving mortgage payments. But you do not need go through this process, you can sell your house now or get a Free Consultation by filling out this confidential seller form and be worry-free.
Foreclosure process typically starts with a formal demand for payment which is usually a letter issued from the lender. This letter of notice is known as a Notice of Default (NOD). Usually the lender will issue this notice when the homeowner has been 3 months delinquent on the mortgage payments. This notice is a threat to sell your property, terminate all your rights in that property and evict you from the premises. Generally, after the court announces a foreclosure, your home will be auctioned off to the highest bidder.
However, you may redeem the property by paying the purchase price (including interest), the foreclosure costs, and the purchaser's expenses in maintaining and operating the property within 180 days after the house is sold. You have to file a notice no less than two days and not more than thirty with the sheriff to redeem your house.
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