Atlanta foreclosure rates are down but not out
There are few things more frightening than losing your home. Going from sleeping in your bed to sleeping in a hotel room or on a friend’s couch is more than a financial burden; it’s an emotional burden. Regardless of the reason, when you find yourself unable to handle your mortgage payments, you may end up facing foreclosure proceedings. And while foreclosure rates in Georgia are falling, the dangers may still be real.
While foreclosure doesn’t appear to be as much of a problem at the moment, the rates may be balancing on thin ice. A quarter of Atlanta homeowners owe more in mortgage payments than their homes are worth, meaning that while the economy is growing, some homeowners aren’t necessarily able to benefit. As the mortgage payments continue to pile up, these residents may be at risk of foreclosure if they are met with unforeseen financial burdens, such as loss of employment.
As sobering as it is to hear, reduced foreclosure rates don’t necessarily mean that foreclosure is becoming any less of a threat. The falling foreclosure rates are held within a bubble, to which the slightest puncture could spell disaster for a large portion of Atlanta homeowners. But all hope is not lost. The economy may continue to improve, and these residents may be able to manage their mortgage payments. If not, there are still other options besides foreclosure.
Some may not find bankruptcy to be the most comforting word, but if they knew that bankruptcy could stop foreclosure, they might think differently. Filing for bankruptcy puts an automatic stay into effect that stops creditors, including mortgage lenders, from taking legal action against you. This can give you the time you need to regain control of your finances. If you or a loved one risks facing foreclosure, know that there are options.
Source: The Atlanta Journal-Constitution, “Foreclosure notices stay low, but may mask problems,” Arielle Kass, Feb. 10, 2014
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