Georgia Foreclosure Crisis, Among the Hardest Hit
Recovery takes time. While we make our way back to a healthy economy, there is still the fact that roughly half of Georgians with mortgages owe more on their homes than the current market value. Couple that with the fact that many Georgians are still facing financial hardship due to loss of industry and income, and we see the very real possibility of these homeowners losing their homes to foreclosure.
The information presented here can arm more Georgians with the facts they’ll need to avoid the heartbreak of foreclosure.
Georgia’s Foreclosure Crisis.
Georgia has been especially hard-hit by America’s housing crisis, with foreclosure numbers repeatedly hitting and then breaking new records over the past several years. Many homes currently listed on the Georgia MLS are still foreclosures or pre-foreclosure properties! In our state, sub-prime mortgages are nine times more likely to be delinquent or in some stage of foreclosure than prime mortgages. And there were a lot of those loan products issued in Georgia between 2001 and 2007. According to the Atlanta Journal Constitution, review of federal mortgage data reveals that a high-interest, sub-prime loan financed one in every four home purchases in metro Atlanta in 2005.
And while many markets across the country finally hit bottom in 2012, most experts agree that some Georgia home owners will likely be slower to regain lost equity. In fact, as bad as it’s been, it could get worse before it gets better. In spite of all their efforts to hold on, many Georgians may find that those mortgage payments are no longer manageable.
It is important that home owners who struggle to make mortgage payments seek help early. Yet, embarrassment may keep them from doing so. Far too many wait until it is just too late before they seek help. Statistically, as many as 70% of homeowners in distress do not appear to have taken any action to resolves their situation. Their houses are never even listed for sale. Many just get so discouraged that they walk away from their debt, permanently impacting their ability to achieve home ownership again.
There is a better response. Get help discovering your options. Arm yourself with information. Georgia home owners who know that mortgage default could become a possibility should waste no time, but start right away investigating every possible option available to avoid foreclosure.
If you or someone you know is facing a mortgage default, the rest of this book is intended to help you better understand all of your options, so you can make the choice that is right for you.