If your Georgia mortgage is delinquent for more than one month, then there is a good chance that the mortgage company will begin foreclosure procedures sometime within the next three months. Steps can be taken to avoid foreclosure in the state of Georgia. One way to avoid this: If you happen to have the amount of money you need to pay off all your past due payments – plus attorney fees and foreclosure costs, in the event that foreclosure procedures have already begun – then the mortgage company will accept the payment and reinstate your mortgage. Another option is to contact your mortgage company directly and work out some sort of repayment plan to bring your mortgage up to date. Typically, this involves your regular payment, plus an additional amount that will apply towards the delinquency. Another option is to consider selling your home or condo.
There are many other alternatives to foreclosure. These might include partial claim. Partial claim describes the process where by the mortgage insurance company lends you money in order to bring your loan up to date. If your loan has mortgage insurance, then the insurance company might lose out if you happen to default. In order to help you keep your home, the mortgage insurance company will help you get caught up with your loan payments. The vast majority of mortgage insurance companies have specially trained staff on hand to help people get caught up with their loan payments.
Yet another alternative is straight modification. This agreement changes the actual terms of your loan. It might lower your mortgage rates and/or your payments to a monthly amount you can actually afford. The missed payments might be added by the sender to your current balance in the straight modification arrangement, thereby increasing your monthly loan payments. In order to do this, you need to be able to prove you can afford to pay the new higher amount without having to default once again.
Then there is forbearance. This is a written agreement in which a lump sum is sent to the lender. Then, each month you must send your regular payment with half of your mortgage payment added on. So if your regular mortgage payment amounts to $600 each month, your first lump sum payment will range from $500 to $800. Each month after that, you will have to pay $900 until you are caught up – that is $600 plus $300. Forbearance plans tend to last anywhere from three to six months.
When you can no longer afford to make your mortgage payments, you will have to apply for permanent hardship. Under this agreement, your mortgage company delays foreclosure proceedings and gives you up to 120 days to sell your property. When you sell the house, if you get less than what you owe to the mortgage company, they may or may not make you pay the difference.
If you are having difficulties paying off your home loan, contact HUD at 888-466-3487. You might also want to contact your local branch of United Way.