Financial hardship can make it challenging to catch up on your mortgage payments. However, understanding the steps you can take to save your home, such as working with your lender or filing for Chapter 13 bankruptcy, may help. While homeowners across the nation have many of the same questions, foreclosure laws differ by state, so use the guide below to learn more about foreclosures in Georgia.

Common Questions About Foreclosure Proceedings

What is foreclosure?

A foreclosure is when a bank or financial institution obtains a piece of property to pay off a debt. Typically, foreclosure proceedings take place with court-ordered documents. However, in the state of Georgia, foreclosures are nonjudicial, meaning the bank can foreclose without filing a lawsuit or going before a judge.

How long does it take to complete?

Under federal law, homeowners are given 120 days to reinstate their loans before foreclosure proceedings can begin. After the 120 day delinquency period, the bank may foreclose on a property.

In a nonjudicial foreclosure, the bank must provide a notice of intent to foreclose no less than 30 days before the sale date. They also must issue a notice of sale in the official county newspaper for four weeks before the scheduled sale date.

How is foreclosure affected by bankruptcy?

Chapter 13 bankruptcy gives you time to become current with your mortgage payments through a court-approved repayment plan. During this time, your lender can't proceed with foreclosure. You'll remain protected through an automatic stay, which suspends all collection efforts, provided you continue to make your mortgage payments and any other payments required under the Chapter 13 plan.

What are the alternatives to foreclosure?

Homeowners facing foreclosure are often unaware that they can prevent it by working with their lender to readjust the terms of their original mortgage based on their current financial standpoint. Lenders can suspend payments or temporarily reduce them to allow borrowers to catch up on missed payments or improve their financial situations.

Those who don't qualify for loan modification might consider applying for an interest-free loan to bring their mortgage current. For those who can't catch up, a pre-foreclosure sale can help you avoid damaging your credit score.

If you're facing foreclosure, there are ways to save your home. Brian R. Cahn & Associates, LLC in Cartersville, GA, has more than 20 years of experience helping clients through the process of Chapter 13 bankruptcy to help them remain in their homes and recover from financial hardship. Contact him today at (770) 382-8900 to schedule a consultation, or visit his website to learn more about his services.