Key takeaways
- Your options shrink as the sale date gets closer, so start with the date on your notice.
- A complete loss-mitigation application submitted more than 37 days before the sale can pause the sale while it’s reviewed.
- Selling before the sale date can protect your equity and avoid a foreclosure on your record.
- Never pay anyone upfront to “save” your home. That is the most common foreclosure scam.
Start with your sale date
Every option below takes time. The first question is how much you have. Find the sale date on your notice (Georgia sales are held on the first Tuesday of the month) and count back. Then work through the options that realistically fit.
| Time until the sale | Options that are usually realistic |
|---|---|
| More than 90 days | Every option, including a loan modification, refinance, traditional listing or short sale. |
| 37 to 90 days | Reinstatement, repayment plan, loan modification (apply right away), a quick sale, short sale or deed in lieu. |
| Under 37 days | Reinstatement, a cash sale that can close before the date, asking for a postponement, or bankruptcy with an attorney. |
| Under 10 days | Reinstatement in full, a fast cash closing if the numbers work, or an emergency consultation with a bankruptcy attorney. |
9 ways to stop or avoid foreclosure in Georgia
1. Reinstate the loan
Reinstatement means paying everything that’s past due (missed payments, late fees and the lender’s costs) in one amount, which brings the loan current. Ask your servicer for a written reinstatement quote good through a specific date.
2. Set up a repayment plan
If you can afford your regular payment again but can’t pay the arrears all at once, a repayment plan spreads the past-due amount over several months on top of your normal payment.
3. Ask for forbearance
Forbearance temporarily reduces or pauses payments during a short-term hardship like a job loss or medical issue. The skipped amount still has to be repaid later, so ask exactly how.
4. Apply for a loan modification
A modification permanently changes your loan’s terms (rate, length or balance) to make payments affordable. Under federal rules, if you submit a complete application more than 37 days before a scheduled sale, the servicer generally can’t complete the foreclosure sale until it has evaluated you and any appeal is resolved (12 C.F.R. § 1024.41). Send everything requested, keep copies and get confirmation in writing.
5. Refinance
If your credit and equity allow, a new loan can pay off the old one. This usually needs more time than you’d expect, so it works best early.
6. Sell the home before the sale date
Selling pays off the loan at closing and stops the foreclosure. Any equity left after the payoff and costs goes to you. A traditional listing can bring a higher price when there’s time; a sale to a cash investor can close faster and as-is when the date is close. See how to sell a house in foreclosure in Georgia.
7. Short sale
If you owe more than the home is worth, a short sale lets you sell for less than the payoff with the lender’s approval. It takes longer than a regular sale and isn’t guaranteed. Compare it in short sale vs. foreclosure.
8. Deed in lieu of foreclosure
You voluntarily transfer the home to the lender in exchange for releasing the loan. Lenders usually require that you try to sell first and that there are no other liens. Learn more about a deed in lieu in Georgia.
9. Bankruptcy
Filing for bankruptcy triggers an automatic stay that generally halts a foreclosure sale while the case is open, and Chapter 13 can let you catch up on arrears over time. It has serious, long-term consequences. Talk to a Georgia bankruptcy attorney before deciding.
Can you get the sale postponed?
A lender isn’t required to postpone, but servicers often will when there’s a real reason: a complete modification application under review, or a signed purchase contract that will close shortly after the date. Ask in writing, and keep working on your plan until you have written confirmation that the sale is off.
Get free, independent help
HUD-approved housing counselors help homeowners for free or at low cost and can talk to your servicer with you. Call 800-569-4287 or find a counselor online. And be careful who you trust. Learn the warning signs of foreclosure rescue scams.
This guide is general information for Georgia homeowners, not legal, tax or financial advice. Laws and lender practices change, and every situation is different. Talk with a HUD-approved housing counselor (800-569-4287) or a Georgia attorney about your circumstances.