Over 350,000 foreclosure filings were received in the United States in 2023. When homeowners face financial hardships and fall behind on their mortgage payments, they often risk losing their hard-earned homes. The process can be especially overwhelming in Georgia due to the non-judicial process, which expedites the foreclosure timeline.
If you’re at risk of foreclosure, it’s essential to familiarize yourself with the procedure to understand your options and take action. Discover the critical steps in Georgia’s foreclosure process, from the first missed payment to the final eviction.
The Foreclosure Process in Georgia
Georgia’s non-judicial foreclosure process allows a foreclosure to be completed much faster than in other states. Foreclosures occur in the State of Georgia on the first Tuesday of each month, and the mortgage company must give you notice and publish the foreclosure in the local newspaper four weeks prior to the foreclosure. The foreclosure is followed by an eviction process of 14 to 30 days. It begins with a 120-day pre-foreclosure period followed by four key steps.
Pre-foreclosure
Before a foreclosure officially begins, you must be over 120 days delinquent on payments. This is a general rule under federal law, but there are exceptions. The day after the late payment to the beginning of the foreclosure is often called the “pre-foreclosure stage.” This 120-day period allows you to avoid foreclosure and submit a loss mitigation application. During this time, the lender cannot create a foreclosure notice or begin filing for foreclosure. They must provide a breach letter and loss mitigation options, such as a repayment plan or loan modification.
30 Day Notice of Intent to Foreclose
The lender must send a notice of intent to foreclose 30 days before scheduling a foreclosure sale. This notice must include the name, address, and telephone number of the individual or entity with authority to negotiate, amend, or modify the mortgage terms. It also may include a copy of the published advertisement, which must be sent by registered mail, certified mail, or overnight delivery, with a return receipt requested to the designated address. If the notice does not meet these requirements, it can be deemed invalid, and the foreclosure can be delayed or canceled until all notice requirements are met.
Publication of the Notice of Sale
Before proceeding, the foreclosure sale must be publicly advertised at least once a week for four weeks in an official newspaper in the county where the property is located. The advertisement ensures prospective buyers are notified of the sale and have enough time to prepare.
Reinstating the Loan
You typically have the opportunity to pay back the money you owe and reinstate the loan up until five days before the foreclosure sale. However, it’s highly suggested that you consult with a legal professional to confirm your exact rights and deadlines in your situation. The payment must include the full amount of missed payments, any incurred late fees or interest, and legal fees. If the lender receives this payment, they will cancel the sale, and you can continue mortgage payments under the original loan policy.
Foreclosure Sale
If the lender does not receive the money owed, they’ll continue with the foreclosure sale on the first Tuesday of the month. The sale typically takes place at the county courthouse. The lender often makes a credit bid, which is the amount of debt owed at the time of the sale.
If the lender acquires the property through a credit bid less than the total debt, they can obtain a deficiency judgment, allowing them to collect the difference from you. If a third-party bidder acquires the property on a bid that is more than the amount owed, you are entitled to the difference.
Once the sale is complete, a non-judicial foreclosure generally cannot be reversed at all, and you will need to leave. While the new owner may be willing to work with you to set up a move out date, usually they will simply try to evict you. This is done by filing an eviction, also called a “dispossessory affidavit”, with the local court. You will be served a copy of this, and once you are served, you have 7 days to respond in writing to the court and the new owner. If you do not respond, the new owner can get an order requiring you to leave immediately. If you do not leave at this point, the Sheriff’s office may assist with removal.
Your Options During Foreclosure
When is it too late to stop foreclosure? While the best time to take action is during the pre-foreclosure period, you have options available to stop the sale of your property once the foreclosure process begins, including reinstating the loan, redeeming the property, or filing for bankruptcy.
Reinstating the Loan
You can prevent the foreclosure of your property up to five days before the sale by paying off the arrears and reinstating the loan. The payment must include all overdue fees and expenses, including missed payments, late fees, and foreclosure process costs. Once the loan is reinstated, the lender halts the foreclosure, and you can continue making regular payments.
Redeeming the Property
If the foreclosure is done through a judicial process—which is less common in Georgia—you have the right of redemption for up to 12 months after the sale. To do this, you must pay off the total debt and any additional fees or interest. The purchaser often provides a written notice outlining the date your right to redeem expires, 30 days before expiration.
Filing for Bankruptcy
Filing for bankruptcy allows you to immediately halt the foreclosure of your property. You can file Chapter 7 or Chapter 13, which effectively stops the foreclosure. You have up until the date of sale to file with the Clerk of the U.S. Bankruptcy Court. Once you file, an automatic stay goes into effect, preventing the lender from foreclosing on the property and collecting debt. The stay can delay the sale for a matter of months and allow you enough time to retain your home. The most effective means to keep the home is to file a Chapter 13 case where the arrears are paid through a Chapter 13 plan over a period of three to five years.
Are You at Risk of Foreclosure? Contact Burrow & Associates Bankruptcy Team
If you’ve fallen behind on mortgage payments or have received a notice of intent, filing for bankruptcy can immediately halt the foreclosure process and allow you to regain control of your finances. At Burrow and Associates, we’ll help you understand your options and walk you through the process to find the right solution for your financial situation. For a free consultation with one of our foreclosure attorneys, contact us at (678) 323-2394.