Foreclosure essentially means the process of repossessing real estate that the mortgage has fallen behind on to the point where the lender has reason to believe that you will be unable to catch back up. Banks that complete the foreclosure process will list the home for sale in order to recover some or all of the money the bank lost on the original transaction. In the event that the bank has listed the home in the Multiple Listing Service, then the home can be put up for sale and the foreclosure process is complete.
There are three stages of the foreclosure process:
- Pre-foreclosure: at this point the bank files a notice for lack of payment. This is generally when the homeowner falls behind two months in the payments. The owner will generally be afforded a period of between two and three months to attempt to refinance the loan or sell the property on short sale.
- Auction: At this point the bank has set up an auction on the courthouse steps (a legal step in the foreclosure process in Georgia) in a bid to sell the home and recover its costs.
- Bank owning: in the event that the home was not successfully sold at the auction, the lien holders have two options. The first option is being paid off by private mortgage insurance and the other option is that they can take a loss on the investment.
If successful, foreclosures can have a number of financial consequences for the former homeowner depending on the agreements that were in the loan agreement that you signed when you purchased the home. The most significant consequence is that the homeowner loses the home, is evicted and loses all the equity you have built up in the home. You could also be sued for any amount the lender does not recover in the sale of your home and you could also potentially face tax consequences with your state and the federal government. It is extremely important that a person knows their rights in the foreclosure process.
If you are experiencing a potential foreclosure call the experienced attorneys at Harmon and Gorove and schedule a free consultation with a dedicated attorney who can help you navigate the foreclosure process and potentially save your home and stop the process of foreclosure. We have helped thousands of people save their homes, come let us see what we can do for you.