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Efforts to Stop Foreclosures in Georgia not Working

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By : John Cutts    99 or more times read
Efforts to stop foreclosures in Georgia have not been working as expected. Recent foreclosure charts showed a resurgence in completed foreclosures statewide after declining month-over-month in April.

In May, nearly 5,300 homes in Georgia entered bank owned listings, eleven percent more than the 4,770 units repossessed in April. Although total foreclosure filings statewide dropped by more than one percent over the month, the total was still 31 percent higher than the total in May last year.

All in all, in the first five months of this year, a total of 23,676 homes in Georgia became REO units. These made up 35 percent of the 67,652 default and foreclosure notices filed during the five-month period. Of this total, pre foreclosures in Georgia reached a total of 43,976 or 65 percent of total filings, and Atlanta pre foreclosures accounted for a substantial percentage of these distressed units.

In May, statewide pre foreclosures accounted for 61.5 percent of total filings while REO accounted for 38.5 percent. With nearly 24,000 REO units in the first five months this year, Finding Bargain-Priced Foreclosed Homes in Georgia is not a hard task.

In addition to the federal Home Affordable Modification Program, one effort of the state to stop foreclosures was the passage of a law that requires lenders to notify defaulting homeowners at least 30 days before initiating a foreclosure. Lenders must send the notice through registered mail with return receipt and must include in the notice the name, contact number and address of the person or entity authorized to negotiate with the defaulting borrower. The entity on the notice must have the authority to modify the mortgage.

In the most recent Treasury Department report on HAMP, only 30,892 troubled borrowers in the state received trial and permanent modifications as of May. This number accounted for only 3.8 percent of all modifications nationwide, another sign that the HAMP effort to stop foreclosures in Georgia has not been working for many in the state.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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