Guide to Deed in Lieu of Foreclosure: Georgia
What is a Deed in Lieu of Foreclosure?
When facing the possibility of foreclosure, you have many options in the state of Georgia. One option is to purse a deed in lieu of foreclosure in Georgia if you need to pay back collateral owed to a mortgage company. There are many different laws surrounding the process of deed in lieu of foreclosure in Georgia. Some of these laws relate to other states, but some of these laws are unique to the state of Georgia as well.
If you are facing the possibility of foreclosure, you should talk with a real estate attorney in order to establish what options will work best for you. A deed in lieu of foreclosure in Georgia is only one option, and your lawyer may persuade you do follow a different option. You have many possibilities in keeping your property even if it involves bankruptcy. However, a deed in lieu of bankruptcy allows you free yourself of your mortgage once submitted to the mortgagee in the state of Georgia.
General Laws surrounding Deed in Lieu of Foreclosure
Some laws carry over from state to state concerning the deed in lieu of foreclosure process. Georgia has some specific laws, but the following laws fall under statutes from the U.S. Department of Housing and Urban Development:
1) If a mortgager has been approved to undergo a deed in lieu of foreclosure, the property owner or family has up to 90 days to complete the action from the beginning of the approval.
2) Under HUD, up to $2,000 may be awarded to the mortgager for junior liens and/or for vacating the property.
3) In some cases, a mortgagee may decide to revert from the foreclosure process to the deed in lieu of foreclosure process instead. This decision is ultimately up to the mortgagee and is strictly based on their Quality Control Plan.
Specific Law for Deed in Lieu of Foreclosure in Georgia
The state of Georgia has many laws concerning foreclosure that closely reflect the laws of other states. One of the similar laws applies to the mortgagee trying to obtain compensation for debt after the mortgagor has submitted and qualified for a deed in lieu of foreclosure. Georgia laws states that a mortgagee cannot pursue personal liability after the mortgager’s interest is terminated.
Another law and procedure that applies to the state of Georgia includes when a mortgager can file for a deed in lieu of foreclosure. Many lenders will not take a deed if the mortgager comes to them before a certain time period of their mortgage payments being late. Most states make a mortgager wait at least 90 days after their payments are late before accepting a deed in lieu (DIL), but the state of Georgia is different. You can submit a DIL if your mortgage payments are late after 30 days.