Georgia’s foreclosure process can often be difficult to understand. Luckily, Georgia law and individual loan agreements explain foreclosure stipulations and procedures to homeowners, from the first notice of intent to foreclose to the foreclosure auction. However, one of the more confusing parts of the process is the pre-foreclosure period, which is the ideal time for any homeowner to settle any default, modify their loan, or sell their house. Here is our quick and easy guide to pre-foreclosure in Georgia and how homeowners undergoing that process can avoid foreclosure.
What is pre-foreclosure?
Pre-foreclosure is a period that precedes the official beginning of the Georgia foreclosure process. Because of this, it is not technically a part of the state’s foreclosure procedures, but it exists in order to provide homeowners with a few months to consider their finances and their loan agreement following a missed payment. This means that it is incredibly important for homeowners to be aware of this process and the options that it may offer to resolve their default.
It’s also important to note that this process can vary widely from lender to lender. There are a few elements that will remain unchanged based federal or Georgia law, but it’s important for homeowners who have missed mortgage payments to review their loan agreement thoroughly and contact their lender or a legal professional with any questions they may have.
When does pre-foreclosure start?
Pre-foreclosure in Georgia begins directly after a homeowner misses a mortgage payment. The lender will take note of this default, and they will likely take action to try and collect the payment and notify the homeowner of any grace period, late fees, or loan modification options. It’s important that the lender and the homeowner have an open line of communication at this point in order to effectively determine which strategy will work best to resolve any delinquent payments. Bad communication can be one of the worst pitfalls for homeowners trying to avoid foreclosure on their property.
How long does pre-foreclosure last?
Federal law requires that mortgage lenders wait at least 120 days following the first missed payment before initiating the official foreclosure process. These 120 days make up Georgia’s pre-foreclosure process. However, this period can last between 3-6 months depending on the lender, the unique situation of the borrower, and the stipulations of the loan agreement. During this time, the homeowner may miss additional payments or struggle to resolve their previous default. Regardless, the lender will likely continue reaching out through phone or mail to find a way to settle the delinquent payments.
The process, however long it might be, ends when the lender sends the homeowner a notice of intent to foreclose, which begins Georgia’s official foreclosure process.
What options do homeowners have during this time?
The several months of pre-foreclosure make up the period where Georgia homeowners have the most opportunity to avoid foreclosure on their property. That is because this period technically precedes the official foreclosure process, and it provides homeowners with a cushion of time to consider different choices.
The lender will likely provide several options during the foreclosure period when they contact the borrower in order to collect any missed payments. These options may include reinstatement, loan modification, or forbearance. Other options that homeowners may consider are government aid or selling their property. Which option a homeowner picks will depend entirely on their personal and financial situation, as well as their goals as a homeowner.
Another thing for homeowners to remember while considering their options is to act fast. Even though pre-foreclosure is at least 3 months long, that time can go by quickly, and Georgia’s non-judicial foreclosure process can move even faster. Being decisive and proactive after missing a mortgage payment is the best method for any Georgia homeowner to avoid foreclosure.
How we can help you in pre-foreclosure
If your Georgia property is in pre-foreclosure, we can help you sell that property so you can move on. We make fair cash offers on local houses in the West Georgia area. Selling to us means that you can immediately use the proceeds from the sale to resolve any default on your loan. When we buy your house, you don’t have to worry about the traditional hassles of selling. Our buying process is designed to help Georgia homeowners sell burdensome properties fast. You don’t have to worry about making repairs, decluttering, or even cleaning. You can also avoid commissioning a Georgia realtor to list your property, and you can bypass paying closing costs or any additional fees.
If you want to learn more about how we can help you sell your house and avoid foreclosure, we invite you to visit our How It Works page. Here, we offer full transparency about our homebuying process, including details about exactly how we calculate our offers. You can also check out Our Company page to get to know our team, our credentials, and our experience. Fill out the form below to get a no-obligation cash offer started now!