3 Ways to Avoid Foreclosure in Georgia

There are plenty of situations that can cause you to face foreclosure on your Georgia home, such as property damage, unemployment, or personal emergencies. No matter what your situation might be, missing a few mortgage payments and facing foreclosure can be completely overwhelming. Luckily, there are options for Georgia homeowners to avoid foreclosure without losing the equity in their home, taking a hit on their credit reports, or dealing with any other long-term effects. If you want to bypass these struggles, here are three ways that you can avoid foreclosure.

Understanding the timeline of foreclosure

The first thing to do when figuring out the best way for you to avoid foreclosure is to know where you are in the foreclosure process. Georgia’s foreclosure procedures are typically nonjudicial, which means they move more quickly than they might in other states. However, you still have time to weight your options, especially if you are still in the pre-foreclosure stage.

Pre-foreclosure is a period of at least 120 days following the first missed mortgage payment. During this time, the lender will send the homeowner letters of default requesting that the payment be made, alert the homeowner of any late fees, and try to negotiate alternatives to foreclosure. Once you’re in the pre-foreclosure stage, it’s important that you act fast. This is the period that will give you the most options for avoiding foreclosure.

Once the pre-foreclosure period ends without the homeowner taking action or negotiating with their lender, the lender must mail the homeowner a notice of intent to foreclose. In Georgia, this must be sent at least 30 days before the lender intends to sell the property. The lender should also publish a notice of sale for the property in the local newspaper; Georgia requires that this notice be published for four consecutive weeks before the sale can proceed. Following this is the foreclosure auction on the specified date.

If you have further questions about Georgia’s foreclosure process and what is means for your situation, we recommend contacting a legal professional to guide you.

1. Reinstatement

Reinstatement is an option that allows you to avoid foreclosure by paying in full any missed payments, late charges, or other fees before a specified deadline. After you make the payment, you can proceed as usual with the previous mortgage agreement you had with your lender without any marks on your credit report. This is obviously the simplest option if you have the funds necessary, but if that isn’t the case, you have other choices.

2. Loan modification

One of the first things you can do if you are facing foreclosure in Georgia is to work with your lender to modify your loan. Modifying your loan involves adjusting the interest rate or extending the loan term in order for you to make payments more easily. This will likely be something that you have to apply for with your lender, and they will review your financial situation to see if modification is a plausible long-term solution. If you are accepted, a loan modification will allow you to pay off any debts, move forward with the new agreement, and avoid foreclosure.

3. Sell your home during pre-foreclosure

Another option, especially if you are still in Georgia’s pre-foreclosure stage, is to sell your house. This allows you to fund your missed payments, save any equity that you gained in your house, and avoid the repercussions of less favorable options like a short sale or deed-in-lieu of foreclosure. You can sell your house in two main ways: by committing to listing with an agent or selling directly to a cash house buyer.

Listing with a Georgia Agent

Listing your Georgia property with an agent is a great option, but you need to be very proactive. Because the listing and selling process can take so long, it is important that you get started as soon as you realize you might be in danger of facing foreclosure. You also have a time limit: you obviously can’t sell a house after the bank has repossessed it. Luckily, if you approach your lender and tell them you want to sell, they may be willing to slow down the foreclosure process if it’s clear that you will be able to pay off your debts. If you decide that listing with an agent is the best option, then the regular home selling process can usually proceed as it would in any other situation.

However, keep in mind that listing a home, even in Georgia’s seller’s market, is a process that can present its own challenges. Be prepared to declutter and deep clean the property, keep the home tidy for weeks of showings, and face potential hurdles in the closing process. You must also factor in your agent’s commission, closing costs, remaining debts that you need to pay, and the cost of holding the property during the selling process.

Selling to a cash house buyer

You can also consider selling your house directly to a professional house buyer. These companies make fair cash offers on properties as-is, and their process offers speed and convenience for you, the seller. This can be especially helpful if you are in a time-sensitive situation like facing foreclosure. If your house is in pre-foreclosure and you want to sell without worrying about the time and money required for listing, then seeking out a professional house buyer to get a cash offer may be right for you. All that you have to do is approach a local house buying company and request a cash offer on your property as-is. They will usually be able to provide a fair cash offer within a week, and if you accept, you and the buyer can close at a local attorney’s office on your schedule. The buyer will handle any additional fees and closing costs, and you get to walk away from closing with cash in your hand so you can pay off your debts and move on.