What To Do When You’re Behind on Mortgage Payments in Georgia

Missing a few mortgage payments on your Georgia house can be totally overwhelming, and receiving notices of default and potential late fees from your lender can make you feel like there is no way to catch up on your overdue balance. Luckily, that’s not the case, and you have several options to help you avoid foreclosure on your Georgia house. Whether you want to keep your home or sell your house and move on, we have an easy guide to figuring out how to handle your missed mortgage payments and avoid foreclosure.

Be Proactive

Georgia’s foreclosure process is generally non-judicial, which means that it moves faster than it does in other states. But don’t let that scare you! As long as you stay aware of your financial situation and Georgia’s foreclosure process following missed mortgage payments, you will be able to give yourself a good idea of what the best path will be for you.

Here are a few things that you should consider:

• How much money you owe your lender
• If you also owe additional late fees
• When you missed mortgage payments
• When you received a notice of default from your lender
• What deadline the lender set for you to make up the missed payments
• What, if any, stipulations there are about missed payments in your loan agreement

(If you aren’t sure how to answer these questions, then we recommend seeking help from a financial or legal professional who can guide you through the process.)

Once you have all of this information and fully understand your situation, you should be able to make a decision about what to do next.

Know Your Goals

You also need to consider what you want to accomplish moving forward and what you are financially able to accomplish. Here are a few things to ask yourself:

• Do you want to stay in your house?
• Do you want to sell your house?
• Do you want to reinstate your previous loan or negotiate new terms?
• Do you have the funds necessary to meet your goals, or will you need to compromise?

Georgia offers a lot of options for homeowners to settle missed payments and avoid foreclosure, so having goals in mind as you decide what to do next will help you gain a better understanding of which path will be the most suitable for your situation.

Understand Your Options

It’s time to figure out which method will be the best for you to get back on track after missing a few mortgage payments. Here is some quick and easy information about different options that you can consider in Georgia.

Reinstate Your Loan

This option involves paying off any missed mortgage payments or additional fees, such as late charges, by the date specified by your lender. You will be able to:

• Resolve the default
• Retain your property
• Continue making mortgage payments under the original loan agreement
• Avoid foreclosure and any hits to your credit report

However, as simple as reinstatement sounds, your financial situation may not allow for you to make these payments by the specified date.

Loan Modification

Loan modification allows you to re-negotiate some the terms of your loan agreement with your lender in order to make mortgage payments easier for you to manage. This option allows you to:

• Resolve or temporarily set aside the default
• Retain your property under a renegotiated loan agreement
• Alter the structure, interest rate, or term of your loan agreement
• Avoid foreclosure and any hits to your credit report

Keep in mind that you often have to apply for loan modification with your lender, and the terms of that modification will depend on your financial situation and may even require a months-long trial period.

Forbearance

Forbearance is an option that can suspend or reduce your mortgage payments, usually due to sudden, short-term financial difficulties, such as medical bills or personal emergencies. This option lets you:

• Suspend or reduce mortgage payments
• Retain your property
• Avoid foreclosure and any hits to your credit report

Much like loan modification, forbearance is an option that must be granted by the lender. It will also require a repayment plan to settle payments that were suspended or reduced during the forbearance process.

Government Programs for Foreclosure Prevention

Depending on your situation, you may be eligible for government aid in order to avoid foreclosure. You can check out Georgia’s mortgage assistance to apply for aid and see what benefits may be available for you.

Traditional Sale

If you are looking to sell your house, you can opt for a traditional sale with a Georgia realtor. This choice allows you to:

• List your property with a Georgia agent
• Sell to a traditional buyer
• Keep your home’s equity
• Use the funds from selling to resolve the default

Keep in mind the time frame that you have to sell your house before foreclosure. Listing and selling a property can be lengthy (and expensive) process. Though some lenders may be willing to delay foreclosure in order for you to have a chance to sell, you may still be on a very tight schedule, so make sure you discuss any time limitations with your agent.

Short Sale

A short sale is an option that allows you to sell your house for less than you owe on your mortgage. This option involves:

• Selling the property
• Avoiding foreclosure, but still receiving a negative credit mark
• Your lender using the funds from the sale to resolve the default

Before you pursue a short sale, know that your lender must sign off on the process and approve selling price. They may also hold you responsible for the difference between the selling price and your remaining debt.

Deed-in-Lieu of Foreclosure

Deed-in-lieu of foreclosure allows you to transfer ownership of your property directly to your lender in order to settle your debts. This option allows you to:

• Leave the property
• Avoid foreclosure, but still take a negative credit hit

This process is usually a last resort for homeowners and is reserved for severe financial trouble. Also be aware that some lenders don’t offer deed-in-lieu of foreclosure as an option.

Sell to a Cash House Buyer

If selling your house is the best option for you, but you want to avoid investing time and money into listing, you might consider selling directly to a cash house buyer in Georgia. This option lets you:

• Sell your property as-is for cash
• Keep your home’s equity
• Use the funds to resolve the default
• Avoid foreclosure and any hits to your credit report

You can research different cash house buyers in your Georgia area to find the best one for you. During this process, make sure you avoid any scam companies: look at customer reviews, work experience, and business verifications in order to make sure you get a cash offer from a legitimate company.

Summary

Missing mortgage payments can be an incredibly stressful time for Georgia homeowners, but the key to getting yourself back on track and avoiding foreclosure on your property is to be active. As long as you take the initiative to know your situation and finances, understand Georgia’s foreclosure process, and research the options available to you, avoiding foreclosure in Georgia is a 100% attainable goal.