How to avoid foreclosure legally

If you are wondering what happens if you cannot pay your mortgage, be clear that you are heading for foreclosure. Foreclosure is a legal means your creditors may use to repossess your home, rendering you homeless.

And, God forbid, if your property is worth less than the total amount owed on the mortgage loan. Your creditors may pursue a deficiency judgment. So, what does it mean for you?

You not only lose your home but also owe them the additional amount.

Quick Stats:

In 2017, 3.77% of the properties

scheduled for foreclosure were filed in Georgia. Nearly, 1 in every 3405 homes was filed for foreclosure in Georgia during September 2017.

How do you get out of foreclosure? Smart tips to avoid foreclosure

 If the question, “Can I save my home from foreclosure?” is arising in your mind, consider yourself fortunate that you have the means to stop a foreclosure. Both foreclosures and deficiency judgments are the stumbling blocks to your qualification for future credit. So, how can you stop a foreclosure? The first step will be to contact a foreclosure defense attorney.

These important tips will be of great help:

  • Take the problem seriously: Get into action the moment you suspect that you are heading towards foreclosure. Delay makes it harder to reinstate your loan and brighten the chances of losing your house.
  • Take creditors into confidence from the beginning: By doing so, you will give creditors a chance to help you.

Note:

Creditors are not interested in possessing your house but in helping you by providing options to tide over your difficult financial times.

  • Keep lines of communications open with creditor: Your creditor may send you emails giving options to help you with your financial problems. You will also receive notice of pending legal action. Don’t ignore these, since this will not be taken as an excuse by the foreclosure court.
  • Be aware of your mortgage rights: If you are aware of what your loan documents contain, you would also be aware what the creditor would do in case you default on payments. So, become familiar with foreclosure laws and timeframes prevalent in your state.
  • Get in touch with HUD-approved housing counselor: These counselors will not only help you understand the law and your options. They will also help to organize your finances and represent you in negotiations with your creditors.
  • Be meticulous in financial management: Your first priority should be keeping your house. To that end, cut spending to realize mortgage payment. Eliminate expenses wherever you can, such as entertainment, eating out, etc. Also, sell unimportant assets to raise money.
  • Avoid foreclosure prevention firms: Many firms profit from people in financial dire straits facing foreclosure. Most of these firms charge hefty rates. You may very well use this money for loan payment. So, you need to avoid foreclosure firms.
  • Beware of recovery scams: If you think that foreclosure prevention firms can stop foreclosure fast, think again. They may claim to know how to stop foreclosure at the last minute. Neverthless, their real motive is to scam you into signing your property in their name.

How long does it take for a bank to foreclose on your home?

The foreclosure process starts with the Notice of Default, which is issued 30 days after the fourth missed monthly payment. From this point onwards, you will have two to three months to reinstate the loan and stop the foreclosure process, depending on state law. In Georgia, it usually takes from 60 to 90 days to stop the uncontested non-judicial foreclosure process.

Can I save my home from foreclosure?

You may save your home from foreclosure if you contact your creditors and negotiate. This negotiation may lead to an agreement, such as a loan modification. This may prompt your creditors to put the foreclosure on hold to evaluate you for a loan modification or other loan workout.

In Georgia, even while you are catching up on your mortgage payments or trying a home loan modification to save your home, your creditors can put your home in a pre-foreclosure status. And you cannot file bankruptcy to keep your home after the foreclosure.

Can you stop a foreclosure?

Missing more than three mortgage payments or filing of a Notice of Default may make foreclosure inevitable, but even at this stage, there are certain strategies you can use to stop the foreclosure process.

Foreclosures in Georgia are notoriously creditor-friendly. Stopping a foreclosure in this state is not that easy since it doesn’t require court’s approval. The only absolute way to stop a foreclosure sale in Georgia is by filing a bankruptcy case.

A foreclosure is an unfortunate event in anybody’s life. Deal with the situation in a professional manner by at once contacting a qualified foreclosure defense attorney, who will be your best guide.

 

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David Galler is an experienced bankruptcy attorney based in Atlanta, Georgia. For the last 29 years he has filed over 10,000 bankruptcy cases. He has a FIVE STAR client rating on Avvo, Kudzu.com, RateABiz.com, and Google+, among other sites. Over 99% of all Chapter 7 cases he filed have been discharged.

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