In Georgia foreclosures have increased dramatically over the last two years. The same is true of states throughout the United States. The increase in foreclosures is due in part to poor performance of all economic sectors. Another major reason for an increasing number of foreclosures is the increase in the number of risky mortgage loans approved over recent months.

When a borrower takes out a loan that represents a repayment amount each month that is at the top limit of earnings for the household, there is a higher risk of default on the loan. Almost any financial occurrence will make it impossible for the borrower to continue to make monthly payments. The loss of a job or the illness of a wage earner can make mortgage payments impossible to meet, even under the most optimum of mortgage loan terms.

Many mortgage loans that were made eighteen to twenty-four months previously provided for a variable annual interest rate. These loans might have been created to require no interest payment adjustments for two years, but at the end of that period, the interest rate could then be adjusted to current levels. At the same time, the principal amount on the loan would come due in what is known as a balloon payment. The assumption was that the borrower would be able to refinance the amount of principal at good interest rates. The premise also included the assumption that credit would be readily available for refinancing.

Other poorly structured loans included those where the borrower was in a negative equity position. The payments made over the first two years of a loan might not be paying the amount it would take to reduce the principal. Then, the borrower determined that qualifying for the mortgage that would be required at the time of the balloon payment was no longer possible.

Given all of these factors and the increasing number of employee layoffs and plant closures, foreclosures have become a major threat in this country. When the borrower is no longer able to make payments on the mortgage, the process of taking the property back by the lender is called foreclosure. This can be either a judicial or a non-judicial proceeding.

Many foreclosures in the state are processed as non-judicial foreclosures, although judicial foreclosures are also acceptable. The foreclosure process begins with the lender notifying the court that the default must be cured within thirty days or the property will be sold to cover the debt. In the state, the borrower may be required to pay not only the default amount, but the entire loan.

The next step is to post a foreclosure sale in the local newspaper for a period of four weeks prior to the sale date. The prescribed date for a foreclosure sale is on the first Tuesday of each month. The sale begins at ten am and is held at the county courthouse. Cash to pay for the sale is due immediately from the winning bidder.

The final step in the Georgia foreclosures process is to confirm the sale through the courts. If the sale is for less than the value of the property, the court may order the process to begin all over again. Otherwise, the property passes legally to the new owner. The original borrower has no redemptive right.

Ga foreclosures have increased dramatically over the last two years. The same is true of states throughout the United States. We’ve got the best inside info on Ga foreclosure properties.