In a national study about foreclosure filing rates, Georgia had the dubious honor of coming in 4th, reports the Atlanta Journal-Constitution.
The state with the most foreclosures was Nevada, where one of every 44 homes showed a foreclosure filing during the third quarter of 2011. California was second, with one for every 88 homes. Arizona was third, with one of every 93. And the state with the most foreclosures on the east coast was fourth, with one out of every 121 homes. The numbers were compiled by RealtyTrac of California.
Metro Atlanta foreclosures were the highest in Georgia, with one out of every 89 homes, RealtyTrac found.
Experts state that one of the big reasons for the increase in foreclosures has been the robo-signing controversy. A series of investigations into the robo-signing controversy revealed that lenders had filed misdated and forged paperwork in foreclosures, leading to default notices, auctions, and bank repossessions at a vast scale.
The foreclosure process involves the creditor repossessing and usually selling the house at a public auction. The proceeds from that auction are used to repay the mortgage and any legal costs. The foreclosure process takes time.
Most creditors do not begin foreclosing until the homeowner is two to three months behind on their mortgage payments. This gives the homeowner some time to consider alternatives to foreclosure, such as a loan forbearance, short sale, or deed in lieu of foreclosure. Should all of these alternatives fail, bankruptcy may help in several different ways, one of which is the automatic stay. A competent attorney would be the person to ask about an automatic stay.
Related Resources:
- Find an Atlanta Bankruptcy attorney (FindLaw)
- Facing Foreclosure? How Bankruptcy Can Help (FindLaw)
- Watch Out For Foreclosure Scams (FindLaw)
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