New Georgia Law Adds Fairness To Foreclosure Process
Senate Bill 531 increases the notice to a homeowner before a lender can foreclose and introduces elements of fairness to the foreclosure process.
Old law only requires a certified letter giving notice of the foreclosure sale to be sent to the homeowner a minimum of 15 days prior to the scheduled foreclosure. An advertisement must be run in a legal newspaper for four consecutive weeks prior to the foreclosure. That meant that the legal advertisement could begin running before a homeowner had received notice of the foreclosure.
SB 531 also requires that the certified letter giving the homeowner notice of the foreclosure sale include the name, address, and telephone number of the “individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor.” This provision of the bill is important because when homeowners are negotiating with their servicers, they often do not know what entity actually owns their loan. Sometimes a servicer will refuse to offer the homeowner a loan modification or other workout, claiming that they lack authority to do so. If the homeowner wants to reach the company that ultimately has the authority to accept any workout agreement, or if the homeowner wants to pursue a legal claim related to their mortgage loan, he or she needs to know the identity of the current holder of the mortgage loan. This bill requires that identity to be disclosed.
Lastly, SB 531 requires that the current holder of the mortgage loan record the assignment of the security deed, which shows the present owner of the mortgage loan, in the public deed records before conducting the foreclosure sale. On many occasions, the wrong entity has commenced foreclosure proceedings against a homeowner. When this happens, it is fundamentally unfair and could mean that a homeowner is still obligated to the true creditor after the foreclosure has been conducted by the wrong entity. Therefore, SB 531 requires a much-needed safeguard against misbehavior and mistake by companies trying to foreclose.
Georgia Foreclosure Prevention Counselors
Georgia Housing Counselors are familiar with the various foreclosure prevention arrangements that lenders will consider. Working with a Certified Housing Counselor is a good way to make sure the advice you receive is accurate, reliable, and appropriate. You Certified Housing Counselor will advise on Georgia law that may help you to avoid foreclosure. Local counselors are also aware of Georgia and federal programs that provide additional financial, legal or foreclosure assistance that you may need.
Home Defense Program
The Home Defense Program (HDP) provides referrals and legal representation to low and moderate income homeowners victimized by home equity scams, including predatory mortgage lending. In 2007, HDP staff saw drastic increases in the numbers of mortgage delinquencies and foreclosures for homeowners who were made loans they could never afford. These mortgages are the basis for the current crisis in the mortgage industry and financial markets.
HDP saved clients’ homes by negotiating cancellations of mortgage loans; restructuring of mortgage loans with substantially lower balances, interest rates, and monthly payments; and short payoffs of mortgage loans with reverse mortgages for senior homeowners.
Contact Legal Aid Society office in your county
Homeownership Preservation Foundation
Homeowner’s HOPE™, a counseling service provided by the Homeownership Preservation Foundation, can work with you to avoid foreclosure. Since 2002, HOPE counselors have provided advice and education to more than 300,000 homeowners.
Through our 888-995-HOPE™ hotline, the Homeownership Preservation Foundation has a single mission: to help homeowners avoid foreclosure. HPF is an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners to avoid foreclosure.
The help offered is free.
HPF counselors are experts in foreclosure prevention and trained to set up a plan of action designed for any situation. Counselors will arm you with education and support that assists you in overcoming foreclosure…at no cost to you.
Related posts:
- Florida Foreclosure Assistance
- Maryland Foreclosure Assistance
- Washington Foreclosure Assistance
- Pennsylvania Foreclosure Assistance
- Tennessee Foreclosure Assistance
- del.icio.us | StumbleUpon | FaceBook | Digg
{ 0 comments… add one now }