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Understanding the Foreclosure Process in GA

Jan 1, 2021

Getting to know the foreclosure process in your state is a critical step in the foreclosure process.

Let’s dive right in…

Understanding the Foreclosure Process in GA

In short, what is foreclosure?

Foreclosure is the legal process that lenders use to regain control over properties secured by loans, generally when the borrower stops making repayments.

Foreclosure is no fun.  But just know that it’s not the end of the world.

When you know how foreclosure in GA works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.

The Basic Stages of A Foreclosure

There are a few stages that are important to any foreclosure process.

Each state has a different process for dealing with foreclosure.

There are two methods for states to foreclose on a property: judicial sale or power of sale.

You can connect with us by calling (912) 421-9907 or visiting our contact page to have us walk you through the foreclosure process here in Savannah].

The foreclosure process usually begins after three to six months of missed payments. In general (but not always), a lender will notify you many times that you are in arrears – overdue or behind on payments.

Under Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You will receive a letter requesting payment from the court.
  • In the case of a valid loan, you will have 30 days to bring the payment to court to avoid foreclosure (which can sometimes be extended).
  • In the event that you do not pay during the payment period, a judgment is entered and the lender has the option of selling your property at auction.
  • As soon as the sale is completed, the sheriff serves you an eviction notice and orders you to vacate the property immediately.

Under Power of Sale (or Non-Judicial Foreclosure):

  • There is no court action required — although the process may be reviewed by a judge. Your lender serves you with papers demanding payment.
  • After the established waiting period expires, a trust deed is established, and the trustee is given possession of your property.
  • After that, your property can be sold to the lender at a public auction (notice must be given).

In either case, anyone who has an interest in the property must be notified.

In addition, contractors or banks that have liens on a foreclosure property will have the right to collect from auction proceedings.

What Happens After A Foreclosure Auction?

With the sale proceeds from a foreclosure, the loan amount is paid off.

Deficiency judgments can be issued if the property isn’t sold at auction for enough to pay off the loan.

Deficit judgments are where the bank obtains a judgment against you, the borrower, for the remaining amount owed after the foreclosure sale.

Some states limit the amount collected by a deficiency judgment to the fair market value of the property at the time of sale, while others allow the borrower to be assessed the full amount owed.

Here’s a resource that lists the deficiency judgment laws in each state, since each one is different.

Foreclosure auctions are generally best avoided. As an alternative, contact the bank or hire a reputable real estate firm like us at 32Homes LLC who can help you negotiate discounts off the amount owed to avoid a foreclosure.

A skilled investor can negotiate directly with banks to reduce or eliminate the amount that you owe in a sale – even if your house is worth less than what you owe.

If you need to sell a property near Savannah, we can help you.

We buy houses in Savannah GA like yours from people who need to sell fast.