There are many homeowners in Georgia who are struggling to keep up with their mortgage payments. If you are among them, you may be wondering whether help is available. As a result of these difficult economic times, a variety of mortgage relief options are available to assist you.
The purpose of this post is to make you aware of everything you need to know about these programs. We will also provide you with contact information for organizations that can help you apply for help. Don’t give up – there is hope! Read on to learn more.
Getting Started
Communicating with your lender and explaining your financial situation is the first step toward mortgage relief. Lenders are often willing to work with homeowners who cannot make their monthly payments. A HUD-approved housing counselor can help you if you’re not sure how to approach your lender or what to say.
Types of Mortgage Relief Available
The state of Georgia offers many options for mortgage relief. Several programs provide mortgage payment assistance, lower interest rates, and shorter terms.
Mortgage Modification
You may be able to modify the terms of your mortgage loan if you are having difficulty making payments each month. A mortgage modification involves negotiating a new repayment plan with your lender that better suits your current financial situation. You may even be able to negotiate a lower interest rate with your lender in some cases.
Forbearance
Forbearance agreements may be available if you’re experiencing temporary financial hardship. The arrangement gives you some breathing room to get back on your feet financially while making reduced or no payments for a set amount of time.
Principal Reduction
A principal reduction may be possible if you owe more than your home is currently worth. In this situation, your loan balance would be reduced to match your home’s current market value.
Loan Refinancing
You may be able to refinance your mortgage at a lower interest rate if you’re having trouble making your payments. Your monthly payments may be reduced so your loan can be easier to repay.
Pre-foreclosure Sale
A pre-foreclosure sale, also known as a short sale, occurs when you sell a property for less than what you still owe on your mortgage. After the sale, the debt is paid off with the sale money.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure may be an option if you cannot sell your home or reach a loan modification agreement with your lender.
Mortgage Relief Programs in Georgia
Homeowner Assistance Fund (HAF)
Georgia homeowners who’ve suffered financial hardship due to the COVID-19 pandemic are eligible to get up to $50,000 from the Homeowner Assistance Fund program. Homeowners can use this program to pay for their mortgage and other home-related expenses.
How it Works
Assistance is offered as a non-recourse grant that does not require repayment. Payment is made directly to the loan servicer or other approved entity, not the homeowner.
Eligibility Requirements
You must have suffered financial hardship due to the Coronavirus pandemic after January 21, 2020, to qualify for this program.
You must also meet the following qualifications:
- The property must be located in Georgia.
- Household income must be less than or equal to 150% of the area median income or 100% of the national median income.
- Your primary residence must be the property you own and occupy.
- The title must be in the name of a natural person and not an LLC, trust, or business.
- The loan must have been a conforming loan when it originated.
How to Apply
Register and apply here. Additionally, you should be prepared to provide mortgage statements, housing-related documents, and proof of your financial hardship.
Foreclosure and Its Consequences
It’s crucial for homeowners facing foreclosure in Georgia to understand the process and the consequences. Defaulting on your mortgage payments can lead to foreclosure when your lender takes back your home. The state of Georgia has a non-judicial foreclosure system. Thus, a lender does not need to file a suit or appear in court to foreclose on your home. Moreover, your credit score can be seriously affected by foreclosure, so you must avoid it at all costs.
Protect Your Credit from Foreclosure with Favor Home Solutions’ Save My Credit Program
If you’re looking for a simple and effective way to avoid foreclosure, we can help! At Favor Home Solutions, we’re dedicated to restoring your peace of mind and protecting your credit! Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or get a foreclosure on your credit report.
You might even be able to pocket some money at the end. No fees, no gimmicks, and no obligations. Contact us today to get started!
