It’s been almost 10 years since the Jarvis Team started doing short sales and what we have found is that even though the numbers of short sales are down, particular in Georgia Real Estate, the need for home owners to avoid foreclosure and be informed on the process hasn’t changed one bit. So that’s what this site will become moving forward, a resource for home owners facing foreclosure or worried about the bank foreclosing and what you can do about it. That’s why I want to start off and briefly talk about the 3 Keys To Responding To A Foreclosure Notice.
While it’s outside the scope of this particular blog post you need to know the foreclosure laws are different in each state. What might be true for homes in Detroit Mi is going to be completely different than homes in Atlanta for example. This site is aimed at helping Georgia residents but whenever possible we will attempt to direct you to the national site. Keep in mind that Georgia is one of the most aggressive states in terms of foreclosing, so it’s likely that our tips here will help you in your state as well.
3 Keys To Responding To A Foreclosure Notice
The key to avoiding foreclosure is to be calm and know that you have options. Even in Georgia, where a bank can start the foreclosure process and in 30 days be the full owner of the home, there’s still options. Here’s what you should do as soon as you get a letter from an attorney or perhaps as soon as you know you cannot make anymore payments.
HUD has a help line, you can call us or you can call the bank. If you choose to call the bank there’s some things you might not want to disclose, particularly if you are unemployed. We’ll cover that in another post. Essentially if you show the bank that you can’t pay they may speed up the process. That being said, if you think you can come out of this situation on your own financially (meaning you can make your payments up) call them and see if they can work it out.
You have multiple options when you’re behind on your mortgage, here’s a few.
- Loan Modification – if you can convince the bank that you can pay and you’re qualified… (and a few other ifs), then they will modify your loan so your payments are lower. They will likely throw the amount of money on the back end of the loan.
- Forbearance – in the same category as the loan modification however, this is where there are no payments made for a short period of time. ex 6 months
- Short Sale – We talk extensively about that here.
- Deed In Lieu – That’s covered here.
- Sell To An Investor – A cash investor can buy your home. Investors will buy your home as is and with cash. You do need to protect yourself because many investors are predatory. However, with the right due diligence you can sell your home fast and get moving.
- Sell to a regular person – if your home is in good condition, you still have time to sell your home.
Star Planning Your Move
it can sound harsh, it can sound like a “gee-whiz-duh” but you’d be surprised, there are many people that get foreclosure notices and don’t do anything about it. Go ahead and make plans to move, check out rental options. The benefit of doing this early is that it’s likely the missed payments might not have damaged your credit too severely.
Know Your Rights!
You own the home until the home is actually foreclosed. So no one can kick you out, until they file a dispossession with the court. In GA, there’s a foreclosure notice, then 30 days letter on the first Tuesday of the month (and only the first Tuesday of the month) they auction the home off on the court house steps. In most instances the lender gets the home back or an investor. In both cases, these parties want you out of the home in the most peaceable way possible. They may not bother you or they may offer you “cash for keys” to see you leave (basically a small money offer of say, $1000 to leave the home quickly). Once they own the home, they still have to get you out of the home legally, so just because the home is foreclosed doesn’t mean you’ll be thrown out… yet.
Conclusion of the 3 Keys To Responding To A Foreclosure Notice
It’s simple advice but so many home owners cower in fear and don’t realize there’s many opportunities to “weathering” the storm. Reach out and get help and if it’s too late then at least know your rights.