Do I Lose My Equity in Foreclosure in Georgia?
Understanding the Foreclosure Process in Georgia
Josh Rand: Let me briefly explain the foreclosure process. On the first Tuesday of the month, if you haven’t stopped the foreclosure, the lender auctions the property at the courthouse. The highest bidder, either the lender or someone else, gets the property. If the bid exceeds your debt, the lender must return the excess amount, minus fees, to you or your estate.
Brad: That’s right. In 2024, unlike the 2007-08 crash, many facing foreclosure have equity. If your house is worth $400,000 and sells for that at auction, but you only owe $300,000, you’re entitled to the extra $100,000. However, estates can’t claim these funds until a legal representative is appointed. This excess money is rightfully yours.
Protecting Your Equity: Act Before Foreclosure
Josh Rand: It’s crucial to act before foreclosure. By selling the property beforehand, you can ensure you receive the equity you’ve worked hard for. This way, you control the outcome and can start rebuilding your financial life.
Brad: Absolutely. We recently bought a property just before the auction and saved the homeowner from foreclosure,allowing them to walk away with a significant amount of cash. If the property had gone to auction, there’s no guarantee they would have received any equity.
The Importance of Choosing the Right Buyer
Josh Rand: There’s no guarantee who will bid at the auction. In a recent case, someone received a higher offer but from a buyer who couldn’t close, ultimately causing them to lose out. Choose trustworthy buyers and build rapport.
Brad: Exactly. We had a situation where a seller played games until the last minute and ended up losing $30,000 because the auction price was lower than our offer.
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