Half of Georgia Home Sales Are on Foreclosed or Distressed Properties

September 15, 2012 (Press-News.org) Throughout 2012 Georgia has consistently ranked at or near the top nationally in foreclosed properties, according to data from RealtyTrac, an online foreclosure database company. In May, Georgia led the nation in foreclosures, with one in 300 properties in foreclosure proceedings. The number represents a 15 percent increase from the same time last year.

Foreclosures do not seem to be slowing down, either. In May, Georgia led the nation in foreclosures, and was third in June. Overall, foreclosures were up 3 percent from Q1 to Q2 in Georgia. However, the number of foreclosure notices sent out are down from its height in 2010, and some experts predict a continuing national decrease in foreclosure sales.

Foreclosures Driving Home Sales

RealtyTrac estimates that 46 percent of all homes sold in Georgia in Q1 were in some state of foreclosure or distress. This also is higher than the national average. First Multiple Listing Service data shows that Atlanta had similar numbers to the rest of the state, with 42 percent of metro Atlanta sales in the first quarter of 2012 involving foreclosures. Most of the buying took place in the outer metro, such as in Walton, Lawrenceville and Fulton County.

Short sales are also increasing. The number of distressed homes sold in Q1 increased by 25 percent in Georgia. Part of the trend of buying foreclosed or distressed homes is the historically low interest rate on home mortgages, which creates more incentive for buyers to capitalize on the lower-priced foreclosed and short-sale homes. In addition, banks are becoming more willing to work with buyers in a short sale situation, as it usually can save the bank money on legal fees and upkeep, as well as provide a better price on the home.

Facing Foreclosure?

Numerous options exist for people facing foreclosure. Chapter 13 bankruptcy is one of the most secure ways to save a home, whereby the filer sets up a repayment plan lasting up to five years, and some unsecured debt is reduced or eliminated. Short sales, in which the bank agrees to sell the home for less than the value of the mortgage, is also increasingly an option. Loan modification with the bank and deeds-in-lieu of foreclosure are other potential options.

If you are behind on mortgage payments, contact an experienced bankruptcy attorney to discuss your options.

Article provided by The Troglin Firm, P.C.
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