While the housing market is rebounding, many people in Atlanta, Georgia are still struggling due to being behind on mortgage payments and trying to figure out how to avoid foreclosure in Atlanta.
If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, you could be fearful that your mortgage provider is going to foreclose.
Thankfully, there are a number of ways avoid foreclosure in Atlanta. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home during foreclosure in Georgia.
So let’s dive in on a couple quick tips on possibly how to avoid foreclosure in Atlanta with your home.
Related: How to stay in my home after foreclosure in Atlanta
The Keys of How To Avoid Foreclosure in Atlanta Don’t Abandon Ship
Many people simply give up and walk away from their home when facing a Georgia foreclosure. There are even areas of Atlanta have begun to resemble ghost towns, as the economy has impacted residents significantly.
Detroit is a prime example of what can happen when people abandon their homes instead of getting foreclosure help when they are behind on their mortgage.
This can be stressful situation, but it’s extremely important to keep your wits about you and remember that there’s numerous ways to avoid foreclosure. A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against your for the unpaid portion.
Ways To Avoid Foreclosure In Atlanta: Foreclosure Options
Negotiate with your mortgage lender.
Banks and other financial institutions are well aware that citizens of Atlanta are struggling. If you haven’t missed a payment yet, you may have some leverage to renegotiate the terms of your loan. Banks don’t like foreclosing on homes, and many will work with you if you aren’t too far behind. You may be offered forbearance, or even a full loan modification.
The bottom line: If you’re struggling to make your monthly mortgage payment or you’ve missed a payment, make a call to your lender. Stay on top of it. Far too often those who are behind on mortgage payments are afraid of the phone because they’ve been receiving calls from collection agencies and fear they’ll have their house taken out from underneath them due to foreclosure in Georgia. Know your foreclosure options and be honest about your situation to avoid foreclosure in Atlanta.
Ask for help from Uncle Sam: Loan Modification Programs
Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.
According to the Consumer Mortgage Audit Center, or CMAC, most loan modifications take at least one year to complete. The more organized you can be, the faster you’ll help your case move through the system. Lenders, says CMAC, are asking for a minimum of:
- 30 days of paystubs, or most recent tax return, if self-employed.
- A personal debt report from one of the three major credit bureaus.
- A hardship letter, the format and requirements for which varies.
According to the Treasury Department, at the end of November 2009, only about 4 percent of the homeowners who signed up for loan modifications had received them.
If you qualify, it’s time to call your lender. “You must be able to clearly state why you can’t make your payment in full.” Some lenders will set up a short-term payment reduction or temporarily waive your payment and add that unpaid amount to your principal. If the situation is dire, consider talking to a foreclosure attorney to review your options.
Related: Foreclosure Effects In Atlanta Georgia – What Sellers Need To Know
We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over Atlanta are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and let’s discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.