In Georgia foreclosures have increased dramatically over the last two years. The same is true of states throughout the United States. The increase in foreclosures is due in part to poor performance of all economic sectors. Another major reason for an increasing number of foreclosures is the increase in the number of risky mortgage loans approved over recent months.

Many recent loans were too high. In the rush to get people into home ownership, some loans were structured so the payments were at the top borrowing limit. The only way that the borrower could be approved is for some assumptions to be made about continued salary levels with no blips on the radar of earnings. If a job loss by a borrower happened or a few days of illness resulted in a smaller pay check, there were no reserves to continue to pay mortgage payments.

Many mortgage loans that were made eighteen to twenty-four months previously provided for a variable annual interest rate. These loans might have been created to require no interest payment adjustments for two years, but at the end of that period, the interest rate could then be adjusted to current levels. At the same time, the principal amount on the loan would come due in what is known as a balloon payment. The assumption was that the borrower would be able to refinance the amount of principal at good interest rates. The premise also included the assumption that credit would be readily available for refinancing.

In the two year period, homeowners who had taken out a loan where the monthly payments included an artificially low interest rate or even a loan where the interest for two years was added to the principal discovered that credit was extremely tight and the borrower’s qualifications for the initial loan were no longer good enough to warrant refinancing. Further, the size of the loan’s principal had increased in spite of payments. There was no equity in the home, since increasing numbers of foreclosures were placing increased downward pressure on housing prices.

Given all of these factors and the increasing number of employee layoffs and plant closures, foreclosures have become a major threat in this country. When the borrower is no longer able to make payments on the mortgage, the process of taking the property back by the lender is called foreclosure. This can be either a judicial or a non-judicial proceeding.

Many foreclosures in the state are processed as non-judicial foreclosures, although judicial foreclosures are also acceptable. The foreclosure process begins with the lender notifying the court that the default must be cured within thirty days or the property will be sold to cover the debt. In the state, the borrower may be required to pay not only the default amount, but the entire loan.

If the default is not resolved, a foreclosure sale notice is posted. It occurs for four weeks prior to the sale date. Foreclosure sales in Georgia happen on the first Tuesday of the month, beginning at 10 a. M. The sale takes place at the county courthouse. If the winning bidder is not the lender, the full amount of the bid must be paid immediately following the sale.

Following court-ordered Georgia foreclosures, a hearing is held to confirm the sale. The winning bid must be at least the amount of the property value. If not, a new sale can be ordered.

Ga foreclosures have increased dramatically over the last two years. The same is true of states throughout the United States. We’ve got the ultimate inside scoop on Ga foreclosure properties.

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