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Can I Fight the Foreclosure of My Home in Georgia?

If your home is facing foreclosure in Georgia, events may proceed faster than you expect. Georgia is a non-judicial foreclosure state, which means that the lender does not need to go to court to start the foreclosure process assuming that right is granted in your security deed which is common. It is important to act quickly in order to save your home. There are a number of potential approaches to stopping foreclosure, depending on your financial circumstances and payment history. 

Lender Negotiations

Mortgage lenders are not in the business of losing money. Many lenders would prefer that debtors make contact when facing financial hardship. The lender may be agreeable to modifying the terms of your loan on either a temporary or permanent basis. There are a number of ways this can happen, including: 

  • Refinancing the debt
  • A reduced interest rate, and/or
  • A mortgage extension

Your lender will take a number of financial factors into consideration before offering loan modifications. If you are solvent and the lender does not agree to work with you, a one-time interest-free loan from HUD may allow you to get up-to-date with your mortgage. Before you can qualify for a HUD loan, you must show that you are financially solvent and sign a promissory note with the lender that commits you to paying off the loan. You likely will be required to grant a second mortgage on your home to HUD.

Special Forbearance

If you are experiencing unexpected financial hardship, the lender may agree to special forbearance. This is a temporary measure which results in the reduction of cessation of monthly payments. The downside of temporary forbearance is the requirement to make higher payments once the grace period ends. These payments are typically 1½ times the original payment amount.

If you are considering asking for temporary forbearance, it is important to remember that you will eventually have to play catch-up – with interest. If you are confident that your financial situation is going to improve, special forbearance may be a suitable option to help you weather the storm. 

Chapter 13 Bankruptcy

You may wish to consider filing Chapter 13 bankruptcy. This type of bankruptcy involves a repayment plan that allows you to catch up on mortgage arrears over time while continuing the regular monthly payments. Chapter 13 repayment plans last three to five years, and ideally you will be current on your mortgage at the conclusion of the case. 

You can delay foreclosure by filing Chapter 7 bankruptcy with an automatic stay issued by the court, but the stay is lifted after a few months, as a Chapter 7 is a very short term case. The lender may also request relief from the automatic stay which will allow the process to continue. Chapter 7 typically is not the best solution when your home is facing foreclosure and you want to save your home. 

If you would like to learn more about how Chapter 13 and Chapter 7 bankruptcy affects foreclosure, speak to an expert bankruptcy lawyer in Georgia today. H. Lehman Franklin P.C. offers advice on individualized debt solutions, based on your financial circumstances. 

Consult with a bankruptcy legal professional when you call the offices of H. Lehman Franklin P.C. at 912-764-9616 or email at info@hlfranklin.com. We are here to guide you through your debt management options with compassion and understanding.