Bills Logo

Mortgage Foreclosure Georgia

Mark Cappel
UpdatedApr 20, 2010
Key Takeaways:
  • HAFA sets guidelines for short sales and deeds in lieu of foreclosure for distressed homeowners. If your servicer participates in HAFA, then the servicer must follow HAFA's guidelines and deadlines for short sales and deeds in lieu of foreclosure.

I am facing foreclosure in Georgia. Is Georgia a recourse state? What are my alternatives to foreclosure?

I bought my home in 2002. Due to the economic situation I had to do a loan modification on my home as of 2009. This reduced my house payment to half the amt. I paid that amt on time each month. This ended in Feb 2010 and I do not qualify for any other assistance. I did not know about short sale or deed in lieu until a few weeks ago & my mortgage co sent me some info on it. However, in order to do a deed in lieu my home has to be listed with a real estate agent for three months. I was told by my mortgage company that this does not stop any foreclosure proceedings and that at this point they are getting ready to foreclose. I can afford my monthly house note but not the arrears of $6,000.00 that is growing. I am willing to go ahead and leave the house to live with my sister, but do I have to wait for a foreclosure letter first? I do not want to leave the house and property vacant without letting the mortgage co know so that hopefully nothing would get vandalized. I want to make sure that the house is properly locked up. I live in Ga and from what I read is a non judicial state and that short sale or deed in lieu is not much of a relief.

Review the Making Homes Affordable (MHA) programs. If your servicer (the financial institution that collects your mortgage payments) participates in program, and you are eligible, you may avoid a foreclosure.

Home Affordable Foreclosure Alternatives Program (HAFA)

The foreclosure process is expensive for all parties concerned, and the cumulative effect of many foreclosures can depress housing prices. To stabilize the housing market, the Obama administration created the MHA initiative. One program in MHA is Home Affordable Foreclosure Alternatives (HAFA). HAFA sets guidelines for short sales and deeds in lieu of foreclosure for distressed homeowners. If your servicer participates in HAFA, then the servicer must follow HAFA's guidelines and deadlines. The guidelines provide financial incentives for both servicers and homeowners. The homeowner must also be eligible for the Home Affordable Modification Program (HAMP) as set forth by the program guidelines.


Foreclosure is the legal process through which a lender (most typically a mortgage lender) claims an asset from the homeowner who has defaulted on their mortgage payments. Because foreclosure is expensive and usually results in a poor return, lenders do not like foreclosure any more than homeowners do. Accordingly, learn more about stopping foreclosure, including the HAFA program, which is a federal program offering financial incentives and guidelines to lenders and homeowners to avoid foreclosure.

Georgia Mortgage Foreclosure

If you do get foreclosed upon, Georgia Code, Title 44 § 44-14-161 indicates the servicer may pursue the deficiency balance. If this occurs and you do not have the assets to pay the deficiency, you should consider bankruptcy. has numerous articles on bankruptcy from terms to types.

For the benefit of readers residing in other states, see the resources on mortgage foreclosure in California, Illinois, Michigan, Nevada, and Virginia.

Quick Tip

Each state legislature created unique foreclosure and anti-deficiency laws. Follow the links just mentioned to learn the foreclosure rules relevant to you.


Do not leave the house yet. Try to negotiate further with your lender. Even if you inform the mortgage company of your intentions to leave (in writing via certified mail), you will still potentially be responsible for the property and any damage or injury that may occur. Consider maintaining homeowners insurance until this title changes hands. Until the actual title of the property is in the servicer's name, you are the legal property holder and may be responsible for damage or loss. Speak with an attorney in Georgia who has experience in real property to review your mortgage documents and the laws regarding foreclosure and deficiency balances.

Quick Tip

Debt distressing you? The Debt Coach is a no-cost online tool that will analyze your debts and show you the options available to resolve them and the costs and benefits of each.

I hope this information helps you Find. Learn & Save.