Speedy Georgia Foreclosure Process Adds to Urgency for Homeowners Considering Chapter 13 Bankruptcy

Foreclosure laws vary significantly by state. One of the key distinctions is that certain jurisdictions require what is known as judicial foreclosure. This means that in order for a lender to take possession of a home, they must first file a lawsuit to do so. Not surprisingly, moving through the litigation process can take a significant amount of time and effort. Though every borrower should treat a foreclosure action with great urgency, the systems in states requiring a court proceeding generally allow more time for homeowners to find a solution such as a mortgage modification or short sale. 

This is not the case in Georgia, a non-judicial foreclosure state. Most residential deeds that secure debt contain a “power of sale” clause that allows a lender to foreclose without filing a lawsuit. Accordingly, the response time for someone facing the loss of their home can be surprisingly short. 

Usually, a borrower must be at least four months behind on payments before a foreclosure action starts. In the pre-filing period, the financial institution typically communicates with the homeowner regarding the alleged violation of loan terms and possible ways to address the unpaid balance. Once 120 days have passed, the lender can send a Notice of Intent to Foreclose on a given date that must be at least 30 days away. Foreclosure sales usually occur on the first Tuesday of the month, and information about the sale must be published beforehand in accordance with Georgia law. 

Given this accelerated timeframe, Georgians at risk of foreclosure should not waste anytime before contacting a qualified lawyer. For many people in this situation, Chapter 13 bankruptcy is the optimal way to pause foreclosure and find a path that allows them to remain in their home. Filing for this type of relief typically triggers the automatic stay, an immediate court order that halts foreclosure activity, collection calls and lawsuits. From there, you and your attorney can develop a plan to cure past-due mortgage payments (arrears) over three to five years, and resume regular monthly mortgage payments pursuant to a schedule based on your income and recurring expenses. 

Jeff Field & Associates represents Georgia residents in Chapter 13 proceedings and other debt relief matters. If you’re in danger of having your residence foreclosed upon, don’t hesitate to call 404-381-1278 or contact us online for a consultation. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.