Legal Question in Real Estate Law in Georgia

I have a home that is facing foreclosure in the State of Georgia. It is not yet in active foreclosure but I am $13K behind on payments. This home is a second home with a loan balance of $173K but similar homes are selling for $120K due to the drop in real estate prices. I currently live in my primary residence in Florida. I applied for short sale and deed in lieu of foreclosure consideration to my bank (Wells Fargo) and was denied for both. I am not sure what I should do at this point. I was thinking of just writing a letter surrending the home along with the key by certified mail. If I did what would likely happen next? Are there any options out ther besides bankruptcy? I have three offers on the home well below what I owe but the bank wouldn't even look at them. One was a cash offer for $150,000.


Asked on 12/19/11, 8:11 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Short sales and deeds in lieu are very problematic, rarely work out and should never be done without legal advice.

Bear in mind that after a foreclosure, the lender can sue you for a deficiency and then garnishee your wages and bank account. Mailing them the key without a strategy to go with it is not a sensible option.

You may have many options, including modification, cash for keys, discharging the deficiency in a chapter 7 bankruptcy to protect your wages, and keeping the home in a chapter 13. Bankruptcy attorneys are familiar with all these options, in and oiut of bankruptcy, so meet with a bankruptcy attorney ASAP, something you should have done before talking to Wells Fargo.

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Answered on 12/19/11, 9:39 am


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