I have recently noticed a significant increase in the foreclosure of homes in the Rome, GA area. Mortgage companies seem to have gotten more aggressive about starting the foreclosure process in Georgia. While there have been many headlines in the newspapers about government action that has been taken to stem the tide of foreclosures, I am just not seeing any positive results.
I recently met with a client in my Rome office who was completely baffled that the mortgage had initiated foreclosure against them. About six months ago, my client called their mortgage company and explained to them that they were have financial difficulty and requested a loan modification in an attempt to prevent foreclosure. My clients were told by their mortgage company to make only half payments while they were being considered for the loan modification. They thought they were safe from foreclosure. Six months later, they were denied a loan modification and received a demand letter for all missed payments. The foreclosure process was started against them. My clients were outraged because they did exactly what they were told by the mortgage company. My clients thought that since they were making the half payments on time, they were current. If you are not approved for a loan modification, the mortgage company has the right to demand every missed payment as defined by their written contract with you.
With respect to foreclosures, the attitude of mortgage companies seems to have drastically changed within the last few months. In early 2009, I was amazed at how the mortgage companies were bending over backwards to avoid foreclosure. I had clients who were 18 months behind on their mortgage payments before a foreclosure action was taken against them. I even saw a few cases where the client was over two years behind on the mortgage and no foreclosure action was stared. In contrast, this past month, I’ve seen quite a few clients who were only five payments behind and yet foreclosure was started.
The good news is that Chapter 13 stops foreclosures. Meeting with a bankruptcy attorney does not cost you anything. Call me today at 706-295-0030 for your free consultation.
If you want to know if your house is being advertised for foreclosure, look in the classified section of the legal organ for your county. You can also check online at www.gerogiapublicnotice.com.