Facing Foreclosure in Georgia? File Bankruptcy to Keep Your Home
If you default on your mortgage payments, the mortgage company will initiate foreclosure procedures on your property. Georgia law requires the mortgage company to give the homeowner written notice via certified mail of the foreclosure date before the scheduled foreclosure date.
In addition, the mortgage company must advertise the foreclosure in the legal newspaper for the county in which the property is located for a period of four weeks before the foreclosure date. Foreclosures in Georgia are conducted on the first Tuesday of every month. If you have been notified of a foreclosure date on your property, you must act quickly to stop the action. One of the ways you can stop a foreclosure is to file bankruptcy. You can file Chapter 7 or Chapter 13 as late as the day before the foreclosure is scheduled in order to stop the foreclosure sale of your home.
In a Chapter 7, you may only gain temporary relief of the foreclosure, unless you successfully work out a home loan modification with your mortgage company or become current on the mortgage arrears. In a Chapter 13, you may wrap the mortgage arrears up in a consolidation plan and pay it back over a period of between 36 to 60 months with no late fees and no interest. As long as you continue to make your regular monthly mortgage payment and the consolidation payment, the foreclosure will not move forward. The advantage of filing bankruptcy to stop a foreclosure on your house is that bankruptcy not only addresses your mortgage debt and the foreclosure, but also helps you resolve the question of how you will pay your car note, your credit card debts, and your medical bills.
By freeing up the funds that you may currently be paying on credit cards with high interest rates and late fees, you will be able to utilize the money that you have to save what is most important to you and your family: your home.