Have you received a Foreclosure Notice of Default?
And now you are wondering what your next steps are? Well, there is no need to panic, but you do need to act. Let’s break it down.
Basically, a foreclosure notice of default is a document that must be filed by a lender to begin the process of foreclosure.
The foreclosure notice of default must be sent to anyone who has an interest or liens on the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy).
The foreclosure notice of default must also be published in the county’s legal newspaper for 4 consecutive weeks and physically posted in a prominent place on the property itself.
Each county has it’s own legal newspaper (it is not the AJC).
- Dekalb: The Champion
- Fulton: The Daily Report
- Cobb: Marietta Daily Journal
- Gwinnett: Gwinnett Daily Post
- Clayton: Clayton News Daily
- Henry: Henry Herald
You Have Four Weeks
Once you receive a notice of default, and it is published in the county newspaper, you have 4 weeks until the foreclosure auction. In Georgia, the auctions take place at the county courthouse on the first Tuesday of every month – even during the COVID pandemic.
While many foreclosure processes have been delayed during COVID, they will not stop completely. You should contact us or get on the phone with your lender to see what your options are and if they intend to foreclose as planned.
Foreclosure Without Warning
Although this public notice can be upsetting to someone facing foreclosure, it’s actually a very important protection for consumers. Back before US law required a notice of default, sometimes a bank would make a mistake and foreclose on the wrong home and kick the owners out without due process or warning. It’s even happened around Atlanta.
The notice of default is a very important step within the foreclosure process that gives both homeowners and lenders a chance to formally make a plan to bring payments current or set up an alternative path that is agreeable to both sides.
Ok, so now that you know the basics, what do you need to do if you have received a notice of default?
Here are a few key steps you should take:
1) Don’t Panic
This is definitely the most important thing to do. This can certainly be stressful, but you can get through it with some guidance and a solid plan. Panic leads to bad decisions, so stay cool.
2) Get Educated
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next.
3) Gather Your Resources
There are many non-profit and government resources available to help homeowners facing foreclosure. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules.
4) Learn Your Options
We’re here to help you avoid foreclosure. We can help you with a short sale, a loan modification, or even sell your house if that is what you want to do. There are many more options than you think.
5) Communicate
The banks involved don’t want your property. They want money, so talk to them to see what options you may have. We can get on the phone with you and the lender to help with the process. You can slow down or stop the foreclosure process if you take action.