What happens after a foreclosure sale in Georgia?

The day finally came. You did what you could to save your home, but on the first Tuesday of the month, it was sold on the courthouse steps. You are living in someone else’s home. What do you do?

Well, first of all, realize that this is a reality. You are living in a house you no longer own. You are going to have to leave. You don’t have to panic and move into the street, though. You have a few minutes. Take a breath.

When the house was sold on the courthouse steps, it was probably purchased by your lender. I say probably because in today’s market, the majority of foreclosed homes are worth less than the amount of the mortgage. Investors want to buy homes with solid equity. The banks are stuck with the rest.

When the bank takes the home back in a foreclosure proceeding, they aren’t going to come knocking on the door the next day. In fact, no one from the bank is likely to ever see the house. What they will do is turn the case over to a servicing company or a real estate firm. That company will begin the process of making the home ready to sell. Part of that process will be to come to the house and see if it is empty. If you are still living there, they will most likely contact you to inform you that the home has been foreclosed on and ask you when you plan to leave. This is where you can make a bad situation a little bit better. 

Frequently, the bank’s representative will offer a monetary incentive for you to leave. The trade term is “cash for keys.” Typically they will ask that you leave within 5 days, leave the house in good condition and broom clean and give them the keys. They will give you money to help you move. This amount is negotiable, so don’t be afraid to ask for more. It’s a good deal for you, because you are eventually going to be moving. It’s a good deal for them, because the eviction process can take a while these days.

If you don’t want to move, the bank’s representatives will file an eviction suit. More on that next time.

If you are behind on your mortgage, don’t sit around and wait to get foreclosed on. Call 770-682-7735 and ask how we can help!

How long can you stay in your home when facing foreclosure in Georgia?

Getting a notice from the bank that they are going to sell your home on the courthouse steps is pretty frightening. Your mind immediately begins to churn – “Where will we go?’ – “We need to look for another home!”

This is a perfectly understandable reaction, but not entirely appropriate. 

When your lender is ready to foreclose, they must send you notice. They send a certified letter, explaining that you are in default, that they have been unable to collect, that your mortgage is secured by real property and that they have accelerated your debt. Then they tell you that you must pay the entire loan, plus fees or your home will be sold in a foreclosure proceeding. Then they give you the time and place of the sale.

In addition to that notice, the law requires them to publish notice in the local paper each week for four consecutive weeks prior to the sale.

So at a minimum, you are going to have 4 weeks from when you receive notice before your home is sold.

Frequently the sale date will be postponed. In Georgia, foreclosure sales can ONLY be held the first Tuesday of each month. If your sale is postponed, it must be postponed for at least a month. The notices have to be reissued, the advertisements have to be run again, the entire process is basically repeated.

Once the home is actually sold at foreclosure, you are living in a home you do not own. In the next article, I will discuss what happens next.

If you are facing foreclosure, there are lots of options. Call 770-682-7735 and ask what those options are.

Gwinnett County Foreclosures (and how to prevent them)

As the bad news about the economy continues to inundate us, the percentage of home sales classified as either short sales or foreclosure sales is skyrocketing. What’s the difference? That’s a great question!

A foreclosure is the end of the road for a homeowner with an unaffordable loan. When a homeowner stops making payments to the lender, the lender sends them a letter. “Hey – Dude (or Dudette) – Where is our money? Please pay us the overdue amount and some fees!” When that letter arrives, you have become a blip on the lender’s radar screen.

Most lenders will send out more letters of this type, hoping to get the payment stream started. These letters are pretty non-threatening and they always include plenty of contact information for the lender. This is the time to pick up the phone and start negotiating with the lender. You can do it yourself or have one of our professionals do it for you. Call 770-682-7735 and ask about a loan workout.

If you ignore these letters, eventually you are going to get a letter that is not so friendly. This letter says “OK. We asked you to pay us and you didn’t. Now we are accelerating your loan. You are in default. Pay all of it plus interest and fees by such and such date or we will take your house.” This letter isn’t quite so non-threatening, is it? In fact, this letter is pretty darned scary! First of all, they say they might take your house (where will you go?) On top of that, they want all of the money you borrowed! Last month they wanted $8000, now they want $245000! Don’t panic. It is not too late. Call 770-682-7735 and ask about a short sale review.

The next letter you will get is the scariest. In this letter they will restate the demand for the entire balance of the loan and will tell you that they plan to sell your home on a certain date. That date will be a Tuesday, and in fact it will be the first Tuesday of a month. In Georgia, foreclosure sales can only occur on the first Tuesday of the month. Time is definitely getting short, but this is not the time to be the turtle in the shell – call 770-682-7735 and ask about having a foreclosure sale postponed. 

If nothing happens to forestall the foreclosure, the home will be sold to the highest bidder in front of the Gwinnett County Courthouse on the appointed day. In the next article, I will explain what happens next.