| Everyone can face Financial Difficulties at some | | | | actually involves more parties: you, the lender, and |
| point of their lives. Financial difficulties can be the | | | | a third party who holds the temporary title on the |
| result due to various reasons. Some of them | | | | home until the full balance is paid. In this |
| could be: | | | | foreclosure process, the trustee - the third party |
| - Health problems | | | | - will be selling your home when you become |
| - Market changes | | | | delinquent. The difference between deeds of trust |
| - Family member death | | | | and the mortgages is that if there is a mortgage, |
| - Rising Mortgage payments | | | | the foreclosure has to be processed through the |
| - Job loss | | | | court system and with a deed of trust, the |
| - Divorce | | | | foreclosure will be done through a court system, |
| - Medical bills | | | | but mainly with the help of a third party - the |
| You name it, it can be anything. But when financial | | | | trustee. |
| difficulties arise, the thought of losing a home is | | | | In Georgia, the Foreclosure process begins when |
| unbearable and we find ourselves stressed and | | | | the homeowner fails to make payments of the |
| under pressure. Most of us would soon lose our | | | | money due on the mortgage at the appointed |
| cool and start panicking. Life is not always easy or | | | | time. This may be due to any of the reasons |
| fair. But the good news is that you do have a | | | | mentioned in How to Stop Foreclosure section and |
| solution. | | | | more. This is a way to enforce payment of the |
| Do not get nervous yet, you do have options to | | | | debt secured by a mortgage and take and sell |
| stop or avoid Foreclosure like real estate | | | | the estate. The goal for you, borrowers, and |
| investors who buy houses fast, mortgage | | | | lenders is to seek a compromise - for you to |
| refinancing, loan modification, to name just few. | | | | keep the home, the lender to keep receiving |
| You need to understand what Foreclosure is and | | | | mortgage payments. But you do not need go |
| what to expect. | | | | through this process, you can sell your house in |
| When you purchased your home, most likely you | | | | several days (this is true, you just need to find |
| took out a home loan. Two parties are involved in | | | | investor who can buy fast) and be worry-free. |
| the buying home side: you (the mortgagor) and | | | | Foreclosure process typically starts with a formal |
| the lender (the mortgagee). You own the home, | | | | demand for payment which is usually a letter |
| and the mortgagee holds a lien on the property | | | | issued from the lender. This letter of notice is |
| until the mortgage is paid off. In the event that | | | | known as a Notice of Default (NOD). Usually the |
| you cannot make your mortgage payments, this | | | | lender will issue this notice when the homeowner |
| security interest (i.e. a lien on the property) gives | | | | has been 3 months delinquent on the mortgage |
| your lender the right to foreclose and auction off | | | | payments. This notice is a threat to sell your |
| your house and keep the proceeds in order to | | | | property, terminate all your rights in that property |
| recover its investment and assume ownership of | | | | and evict you from the premises. Generally, after |
| the property. The process by which the lender | | | | the court announces a foreclosure, your home will |
| assumes ownership is called Foreclosure. In case | | | | be auctioned off to the highest bidder. |
| your property cannot be sold for what is owed, a | | | | However, you may redeem the property by |
| deficiency judgment could be pursued against you. | | | | paying the purchase price (including interest), the |
| Both a foreclosure and a deficiency judgment | | | | foreclosure costs, and the purchaser's expenses in |
| could seriously affect your ability to qualify for | | | | maintaining and operating the property within 180 |
| credit in the future. | | | | days after the house is sold. You have to file a |
| Some states use a deed of trust, and that | | | | notice no less than two days and not more than |
| serves the same purpose as a mortgage but | | | | thirty with the sheriff to redeem your house. |