The Cobb County (Georgia) Foreclosure Process
The following list applies to foreclosures in all State of Georgia counties:
The debtor ceases to make timely mortgage payments.
The mortgage company issues a Notice of Default (NOD).
The notices of sale begin to appear in the Marietta Daily Journal once a week for four weeks.
On the first Tuesday of each month (New Years and July 4th can cause it to be held the following day), between the hours of 10:00AM to 4:00PM, the property is auctioned off to the highest bidder on the court house steps for cash.
If no one bids on the property then it goes back to the lender to be processed as Real Estate Owned (REO). From there, it is widely held out as a foreclosure-even though the action has already taken place.
Metro Atlanta Short Sales (We are the Specialist and Do Quick Short Sales)
There is such thing as asking for full value in Georgia's real estate market it is not going to benefit a distressed homeowner. Homes aren't selling as fast as they were a year ago and it is going to take a SERIOUS PRICE REDUCTION to land a ready, willing, and able Buyer. The problem is that there is no room to drop the price. In some cases, the Seller owes more than the fair market value of the home. This is where a short sale can benefit the Seller.
The short sale requires a willing Buyer to purchase the property. It takes a qualified Short Sale Specialist to facilitate a frequently rough and time consuming process. In the end, the lender and other concerned creditors agree to recover less than the amount they are owed as a hedge against foreclosure (where they risk losing everything). For example, the debtor owes $190,000 on the mortgage. After an extensive amount of skilled negotiations, the lender agrees to accept $155,000 and will then release their interest in the subject property. In this example, the shortage amount is $45,000. In years past this $45,000 could cause a taxable event to the debtor. With recent legislation, it is no longer Really a concern (as always, consult your tax advisor for more information).
Deed in Lieu Foreclosure
The deed in lieu of foreclosure is a choice the distressed homeowner may wish to explore directly with their mortgage company. In this case, a home owner essentially walks away from the property by surrendering the title to the lender (sometimes called a "Deed for Keys"). This is Voluntary Foreclosure and YES IT DOES DESTROY YOUR CREDIT FOR 10 YEARS. Your best shot at minimizing your credit profile is a SHORT SALE.
The deed in lieu of foreclosure occurs more frequently in states that utilize judicial foreclosure proceedings. Also, if the property is encumbered by more than one lien then the lender will probably not accept a deed in lieu of foreclosure. Bear in mind that Georgia is a non-judicial foreclosure state. As such, a deed in lieu of foreclosure is most likely not an option for the debtor.
If the lender accepts a deed in lieu it is in the debtor's best interest to read through the contract to make sure that it is "without recourse." This means the lender will take no further action to collect from the debtor.
AJC Reports Metro Atlanta Homes dropped to 1999 value
State of Georgia Bankruptcy
Often, many people confuse bankruptcy with foreclosure. These are two very different actions. Both are devastating to the debtor's credit. Contrary to negative opinion, bankruptcy is often a necessity for homeowners facing insurmountable debt. It is most certainly an unpleasant situation and does not cure the problem by simply dissolving debt. There are many complexities in the new bankruptcy code making it imperative to contact a professional who can provide real help in an already tough situation. While we cannot provide any legal advise, our company works closely with an excellent real estate law office in Atlanta. Give us a call and we will point you in the right direction. Bankruptcy DOES NOT STOP Foreclosure, only pushes it down the road a few months!
We are Cobb County's & Metro Atlanta's Short Sale Specialists
A short sale is not a simple undertaking and you will need a Specialized Professional Representation. If you find yourself in distress and need to discuss your options give us a call or contact us immediately for help. A short sale may or may not be in your best interest and talking to a real estate professional will help you make an educated decision. You can expect to hear a respectful but frank discussion of your options. Taking the pro-active step of picking up the phone and calling will put you considerably further ahead of your troubles than the stark denial of an already tough situation. Many people in foreclosure wait till the last minute. TIME IS YOUR ENEMY. If your tired of the system telling y0u what to do and taking things from you CAll US NOW.
A surprising number of distressed homeowners do not attempt to sell their homes in a timely manner prior to losing their house to foreclosure. Understandably, there are situations where the homeowner is overcome by events beyond their control. But if there has been a diminished flow of income or the monthly mortgage payment increases dramatically, then it is time to get help before an unwanted remedy is forced upon you.
So Which is Better?
Here is a question we are asked all the time: Which is better; a deed in lieu of foreclosure, a short sale, or a foreclosure? What most people are really asking is "how does this affect my credit?" All three can have a tremendously negative impact upon your credit. However, a foreclosure will hurt far worse. Short Sale is the best option, unless you can move your home through a Rent to Own or 100% Seller Financing Option through Real Home Solution.
Unfortunately, as mentioned before, if you live in Georgia, a deed in lieu of foreclosure is not likely to be an option. As a non-judicial foreclosure state, Georgia lenders have the ability to rapidly foreclose upon the debtor. Additionally, the foreclosure action serves to wipe out many of the liens that affect title. From the lender's perspective, this is preferable to a drawn-out negotiation for a short sale or deed in lieu. The short sale might be your best option and certainly worth exploring prior to losing your home to foreclosure. If your credit rating is important to you. there is even a way to preserve your credit by taking back the shortage amount as a personal loan that can be repaid over time.
Visit : http://real-home-solution.com/seller-solutions-2/short-sale-specialist-division/