If I am Behind on my Mortgage Payments, Should I File Bankruptcy in Georgia?

If you are a Georgia homeowner and have fallen behind on your mortgage payments, but have not received a notice of default from your lender, you may still be at risk of foreclosure and should consider filing bankruptcy in Georgia as a way to keep your home.

NPR recently published an article that stated foreclosures are decreasing, which sounds positive but is merely an indication that there are so many houses subject to foreclosure that the mortgage companies cannot keep up. According to the research firm RealtyTrac, the number of properties receiving an initial notice of default fell by 39 percent as compared to April of last year. But, although fewer homeowners have been put on notice for being behind on their mortgage payments, this does not mean that these homes are safe from foreclosure. In fact, the decrease in default notices has not been because more people can afford their homes. It has been attributed to the banks’ inability to process foreclosure paperwork fast enough!

There are millions of homes with mortgages that are seriously delinquent. Therefore, due to the sheer number of homeowners in crisis, it is taking longer for lenders to complete the documentation and legal requirements needed to foreclose. According to RealtyTrac, it has been taking and average of 400 days for a U.S. home to go from receiving an initial notice of default to being foreclosed on.

What Does This Mean to Me?

This means that, although you may not have already received a notice of default, you eventually will. So, if you are in jeopardy of losing your home to foreclosure in Georgia, you should be proactive and investigate ways to keep it, including modifying loan terms, eliminating a second mortgage and/or filing bankruptcy.

If you are a homeowner interested in discussing ways to avoid foreclosure in Atlanta, Georgia, contact the Law Offices of Charles Clapp at 404.585.0040 to schedule a free initial consultation.