What is a Foreclosure Notice of Default in Georgia?

Plenty of situations can cause Georgia homeowners to miss a mortgage payment, and if you are in that situation, you may be wondering about what comes next, how to resolve the default, and how to avoid foreclosure on your property. The first thing you can expect after missing a mortgage payment is a notice of default from your lender. This post will explain what a notice of default is, what it means for your situation, and how you can avoid facing Georgia’s foreclosure processes.

What is a Notice of Default?

A notice of default is a document that your mortgage lender will send to you and submit into public record if you are overdue on your mortgage payments. This notice will include:

• The names and addresses of the borrower (you) and the lender
• The amount that you owe, including any late fees
• The deadline for resolving your default. In Georgia, this period is usually at least 120 days after the first missed payment, but be aware of varying stipulations in different mortgage agreements
• The steps that will be taken by your lender if you do not resolve the default

If you receive a notice of default, it is important that you read it very carefully. It is likely that your lender will provide loan modification options that will make your mortgage payments easier to handle. If you have any questions about these options or your situation, you should reach out to your lender or seek legal counsel for guidance.

When Will I Receive a Notice of Default?

When you receive a notice of default can vary depending on the lender. In Georgia, you may not be considered defaulted on your loan until 15-30 days after a missed payment, at which point you will receive the notice from your lender requesting that you resolve the delinquent sum.

What Does a Notice of Default Mean for Me?

A notice of default does not mean that your lender is beginning the foreclosure process immediately. Rather, it is your lender’s way of letting you know that foreclosure is a possibility if you don’t take action to resolve your default and continue making your mortgage payments. However, even though you are not yet in foreclosure after receiving a notice of default, the default may still appear on your credit report and impact your credit score.

How to Avoid Foreclosure?

Because receiving a notice of default does not signify that you are immediately entering the foreclosure process, you have time to consider different methods for avoiding foreclosure. Your lender will likely be willing to work with your for different remediation, refinancing, and loan modification options that will allow you to resolve your default and create a plan for making payments more easily.

You also have the option to sell your home, which will provide you with funds to settle 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 is a process that can present its own challenges and delays. Getting a house market-ready and finding the right buyer can take time and money, so carefully consider the costs and benefits to ensure this option is right for you.

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. A professional house buyer 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 resolve your default and move on.

Summary

Missing mortgage payments and receiving a notice of default can be overwhelming for homeowners, but as long as you do your due diligence to ensure you understand your situation, review your options, and communicate with your lender, you can easily find the best way to resolve your default and avoid foreclosure.