In Georgia, buyers are contractually obligated to pay their mortgage payments according to the documents they signed at the closing. By accepting the mortgage loan contract, the buyer is responsible for the full payment of the mortgage for the purchase of the real estate. However, if they default on the loan, the lender can start the foreclosure process. A local attorney can provide answers to questions about how to stop foreclosures in Gainesville, GA.
How Long Does It Take for a Consumer to Default on Their Mortgage?
Typically, the borrower is in default as soon as they have missed at least three payments. However, the lender doesn’t initiate the foreclosure process until the borrower is at least six months late on these payments. The lender must issue a notice of default to the borrower prior to starting a foreclosure, and the borrower has three months to bring the payments up to date.
Can the Borrower Purchase the Home During an Auction?
Yes, the borrower has the legal right to bid on the property once it has been entered into an auction. If the borrower wins the auction, they become the lawful owner of the property, and the bank cannot seize the property again. However, the lender can file a legal claim against the borrower for any outstanding balances owed through the mortgage contract.
Can an Attorney Stop a Foreclosure?
Yes, the attorney can negotiate with the lender on the borrower’s behalf based on an attempt to modify the loan. However, if the contract includes predatory practices that are illegal under federal law, the attorney can petition the court if the lender doesn’t provide a modification.
Is Bankruptcy a Viable Solution?
Yes, bankruptcy could provide an automatic stay for the borrower, and they can avoid a foreclosure. However, they must fulfill all obligations of the bankruptcy claim, or the borrower will face an immediate foreclosure after the claim is discharged.
In Georgia, buyers must fulfill their obligations outlined in their mortgage contract or face seizure through a foreclosure. The process allows the lender to take the property and sell it at an auction.
