In Georgia, homeowners could be faced with circumstances that prevent them from paying their mortgage payments such as job loss, sudden illness, and unexpected rate increases. To mitigate the risk of losing their property and sustaining a serious blow to their credit, consumers turn to attorneys to find a real solution. The following information highlights the methods used to stop foreclosures in Marietta, GA.
Loan Modification Options
When an attorney approaches a potential loan modification, they review the mortgage contract. If the contract includes any unethical clauses, the attorney can demand the modification to eliminate any predatory lending practices. They assess the interest rates available to the consumer when the contract started. They also calculate the consumer’s income-to-debt ratio to determine if they could afford the loan in the first place.
A Quick Sale of the Property
A quick sale is conducted in one of two ways. Either the homeowner sells the property themselves through a real estate agent or it is sold by the lender through an auction. In most cases, the homeowner can acquire a higher value if they utilize the services of a real estate agent. Any remaining balance after the sale is the responsibility of the homeowner.
Deferred Payments Options
In some cases, the homeowner can acquire deferred payments. This is an option that allows them to stop payments for a predetermined amount of time. Typically, the duration of the deferment is limited to a few months. The payments are added to the end of the mortgage loan as well as any late charges or finance fees.
Filing for Bankruptcy
Bankruptcy can also stop foreclosure. The homeowner acquires an automatic stay based on the type of bankruptcy they choose. Chapter 13 provides an automatic stay of up to five years. Chapter 7 or liquidation provides the stay for a maximum of six months.
In Georgia, homeowners facing dire financial difficulties could be at risk of foreclosure. This legal process allows the lender to seize the property and sell it through an auction. However, the homeowner must default on the mortgage loan first. Homeowners who need to review options to stop foreclosures in Marietta, GA can visit website for more details now.
Be the first to like.