In Georgia foreclosures are at an all time high, just as they are in the rest of the United States. The failure of many mortgage loans can be blamed partly upon the economic downturn. Another major cause of increasing number of foreclosure actions is the high percentage of risky loans that were approved in the period between two and four years ago.
The loans that fall in the category of risky often were so large that the borrower was just barely able to make a full monthly payment. Any event that increased the monthly expenses for borrowers or reduced the income could result in not enough money to make the mortgage payment. A loss of income of a wage earner in the household due to job layoffs or illness can be the final straw, bringing down the entire financial picture.
Some of these creatively structured loans allowed the borrower to make smaller payments than needed to cover the principal and interest. The difference is added to the principal so that at the end of the short preliminary period, the borrower may owe more than when the loan began. Under the original terms, the assumption was made that two years of good payment history and a normal increase in salary would allow the borrower to refinance the mortgage for the larger payment amount. In practice, poor economic growth, dropping housing prices, and job losses all conspired to make the borrower an even poorer mortgage loan risk. Refinancing is often no longer an option.
Faced with a larger loan, no equity in the home, poorer credit and dropping house prices, many borrowers can not afford payments. They can’t refinance due to their credit score. They can’t even sell the home without taking a loss. Default on the loan is almost inevitable.
Given all of these factors and the increasing number of employee layoffs and plant closures, foreclosures have become a major threat in this country. When the borrower is no longer able to make payments on the mortgage, the process of taking the property back by the lender is called foreclosure. This can be either a judicial or a non-judicial proceeding.
A clause in most trust deeds allows lenders to complete the foreclosure without going to court. The lender files a notice and borrowers then have 30 days to catch up the amount that is past due. Some deeds allow the borrower to continue on with the property after a cure of the default; other mortgages require the entire amount of the loan to be repaid within the 30 days–a feat that is seldom possible.
If the default is not resolved, a foreclosure sale notice is posted. It occurs for four weeks prior to the sale date. Foreclosure sales in Georgia happen on the first Tuesday of the month, beginning at 10 a. M. The sale takes place at the county courthouse. If the winning bidder is not the lender, the full amount of the bid must be paid immediately following the sale.
Within five days after the sale, a court ordered hearing must be held to confirm the validity of the sale. If the market value of the home is not received, the court can order a new sale. The buyer has no further rights to the property.
Ga foreclosures have increased seriously over the last 24 months. The same is true of states throughout the USA. We’ve got the inside scoop on Ga foreclosure properties.
