Foreclosures are continuing to be a pressing issue around the country as well as in Atlanta Georgia. A homeowner who has stopped making their mortgage payments is at risk of their home being foreclosed. There are options for Atlanta homeowners, but often a short sale is teh only viable option.

It’s always stressful enough when you are having financial difficulties, but the unknowns of how one does a short sale does not need to add stress to your life. It’s always important to hire a short sale Realtor who is knowledgeable of the process and has successfully negotiated short sales..

Realtors who are experts in short sales can advise you on the proper steps when dealing with the mortgage lienholders. Avoid hiring anyone who has little experience in short selling or who hasn’t been successful in closing a similar deal in the past. Ask the agents about how many deals they have successfully closed in the past.

Always get the help of a Realtor who has the knowledge and experience in short sales. Seeking out a Certified Distressed Property Expert helps to ensure the Realtor has attained critical training related to short sales and foreclosures. The Realtor should be able to explain how things will go from the beginning to the end and keep you informed throughout the whole process.

We speak with many homeowners that are in a similar situation such as yourself. When trying to avoid foreclosure, procrastination is not an answer. It’s important that you contact us immediately so we can assess your situation and provide you with options based upon our initial assessment. Rest assured, all consultations are held in the highest confidence. We understand that this is a stressful time and we want to ensure that your needs will be addressed in a confident and professional manner.

About the Author:

Aaron Hofmann is a Certified Distressed Property Expert with Keller Williams Realty in Atlanta. Mr. Hofmann is not only Realtor, but also a CPA, and is expert in dealing with the financial industry and assisting distressed Atlanta homeowners avoid foreclosure.

Georgia is third in the nation, with 13.5 percent of mortgages one or more payment past due as of December 31st, according to the Mortgage Bankers Association’s National Delinquency Survey. Florida and Nevada came in at #1 and #2.

The MBA said the drop in the 30-day delinquency rate is “a concrete sign” that the end of the mortgage crisis may be near. That’s important because mortgages that are 30 days late generally serve as a leading indicator of serious delinquencies and foreclosures.

The U.S. Department of the Treasury recently reported while more than 1 million U.S. homeowners have started the process of modifying their home loans under the government’s Home Affordable Modification Program (HAMP), only 116,000 have actually had their mortgages modified as of last month.

In Georgia, there have been 33,059 active trial loan modifications through January. Of them, 4,508 have been permanently modified.

Atlanta is among the top 15 metro areas for HAMP activity, accounting for 3.2 percent of overall HAMP activity. The city had 30,285 active trial loan modifications through January. Of those, 3,692 were permanently modified.

If you or someone you is having financial issues and concerned about foreclosure, contact us for a free report on Avoiding Foreclosure.

That’s right, 28%. Not a good number.

More than 441,500, or 28 percent, of all residential properties with mortgages in Georgia, were in negative equity at the end of the fourth quarter, according to a new report. The report was prepared by Santa Ana, Calif.-based First American CoreLogic Inc., a real estate information company.

Negative equity, also commonly known as underwater or upside down, means that borrowers owe more on their mortgage than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

More than 11.3 million, or 24 percent, of all residential properties in the United States with mortgages, were in negative equity, up from 10.7 million and 23 percent at the end of the third quarter. The aggregate dollar value of negative equity was $801 billion, up from $746 billion in the third quarter of 2009.

The net increase in the number of negative equity borrowers in the fourth quarter was 620,000, with the largest percentage increases occurring in Nevada, Georgia and Arizona.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” said Mark Fleming, chief economist with First American CoreLogic, in a statement.

First American CoreLogic’s data includes 47 million properties with a mortgage, which accounts for more than 85 percent of all mortgages in the United States.

Having negative equity does not mean that your home will be foreclosed, but it does indicate homes that are “under-water” and if the homeowner is having financial difficulties, foreclosure proceedings can happen pretty quickly.

If you or someone you is having financial issues and concerned about foreclosure, contact us for a free report on Avoiding Foreclosure.

Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption.  Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue HOA dues or assessments.

What the heck does that mean?

Basically, failure to act means you could lose the right as a homeowner to the ownership rights of your house and forfeit these rights to your lender.

Foreclosure is what happens when a home owner chooses not to act.

The process of foreclosure is a voluntary decision on the homeowner’s part.  The inability to not be able to afford one’s mortgage does not mean that the home will be foreclosed.  The homeowner has options.

For example, you can choose to stand in the middle of the road.  When the truck comes you have two choices; get run over or move out of the way.

Likewise, when a homeowner is unable to meet their financial obligation they have two options; not pay anything and get foreclosed on or be proactive and contact the bank or attempt a short sale (amongst other options).

Once the process has started there is no guarantee that the homeowner will be able to prevent the process, however not making any attempt to prevent it will ensure that the home is foreclosed.

If you find yourself standing in the middle of the road you can choose to dodge the truck, however you may still get run over.  Your survival is dependent on how far in advance you see the truck moving towards you and how quickly you react to it.

The same is true with foreclosure…the quicker you act the more likely you are to dodge it.

If you are facing foreclosure and want to learn how you can become proactive and attempt to avoid the process, contact us, your Certified Distressed Property Expert and Atlanta foreclosure and short sales experts.

Atlanta is among the nation’s hardest-hit markets for foreclosures according to a Harvard University scholar.  The large numbers of subprime loans, extensive mortgage fraud, and large quantities of housing stock are the identified causes of this current increase.

Mark Duda, the Harvard researcher who is analyzing national foreclosure trends for a study sponsored by the Fannie Mae Foundation, said Thursday that the high foreclosure rates produced by failing subprime loans are costing communities millions of dollars in hidden losses.

“When there’s a foreclosure, it causes other problems,” Duda said.

Properties surrounded by foreclosures will often see their property values decrease as a result.  This is largely in part due to the increase in crime in these concentrated areas where foreclosed and vacant structures seem to promote criminal activity.

In Georgia, failing subprime loans also boost the per capita rate of Chapter 13 bankruptcy filings to three times the national rate. The state’s short window between the declaration of foreclosure and seizure of the property sends many homeowners to bankruptcy court to stop the sale while they attempt to restructure their debt, Duda said.

Maps compiled by Duda as part of his study, which will be released nationally early next year, show growing concentrations of foreclosure spreading “like a virus” through metro Atlanta between 2001 and 2007, he said.

Using data provided by the Atlanta Foreclosure Report, Duda’s maps show high percentages of foreclosure, especially in the southern portions of DeKalb and Fulton counties and the city of Atlanta.

Duda said repairing problems with subprime lending will be challenging.

“There are lot of structural problems with subprime lending itself that are going to make it difficult to solve,” Duda said.

The Harvard researcher will join U.S. Treasurer Anna Escobedo Cabral in a forum sponsored by the Consumer Credit Counseling Service of Greater Atlanta and NeighborWorks America at the Commerce Club, 34 Broad St., NW, in downtown Atlanta at 8 a.m. Friday. The pair will discuss foreclosure and efforts to stem its growth in Atlanta and nationwide.