In Georgia, borrowers may face circumstances in which their lender will file a foreclosure. These circumstances could include a sudden job loss, illness, or a reduction in their pay. These life events could prevent the borrower from making their payments in a timely manner and could lead to a default. The following are methods used to stop foreclosures in Marietta.
Mortgage Loan Modification
A loan modification could reduce the value of the mortgage payments. This change could be permanent or for a specific amount of time. Most modifications are used to eliminate predatory lending practices. If an attorney reviews the mortgage contract and discovers these practices, they can demand these modifications. This action can eliminate late fees and charges and make the loan more affordable for the borrower.
Quick Sale Options
A quick sale is an action in which the borrower places the property on the market just before the foreclosure process begins. In these sales transactions, the borrower may not acquire the full mortgage value. If this happens, they remain liable for the outstanding balance. The borrower can either place the property into an auction or work with a real estate agent to find investors who want to purchase a property quickly.
Bankruptcy Claims for the Borrowers
To file a bankruptcy claim, the borrower must establish eligibility. If they want to file a chapter 13 claim, they must have an income that is higher than the median, which is $42,688. They must provide income statements for the last six months prior to the claim that prove eligibility for this chapter. If they don’t, the borrower can file chapter 7 only.
The bankruptcy claim will provide an automatic stay until the claim is over. For chapter 13, this could equate up to five years, while for chapter 7, the stay remains for up to six months.
In Georgia, borrowers must take quick action when facing foreclosure. The legal action leads to the seizure of the property and the immediate sale through auction. To avoid this action, the borrower needs an attorney to help them. Borrowers who need to stop foreclosures in Marietta can visit Chriscarouthers.com for more info now.