Georgia Bank Foreclosures Process at High Speed

by on States

Homeowners who default on their mortgage payments may end up losing their properties to Georgia bank foreclosures without any judicial review in just over a month. And before they realize what really happened, their distressed properties are already on the auction block.

In Georgia, 159 counties hold auctions of foreclosed houses every first Tuesday of each month. As of September 1, about 1,500 foreclosure properties in Atlanta were auctioned off. The Rainbow PUSH Coalition and Reverend Jesse Jackson, together with 125 ministers in various areas in the Southern States, tried to stop the auction.

The group appealed to both Wells Fargo and Citibank to withdraw all foreclosure homes from the auction. In response, Citibank withdrew 30 foreclosed homes from the 40 properties it put on the auction block. The company will also restructure the troubled loans.

On its part, Wells Fargo is still reviewing its response. Jackson praised the Citibank for its decision to pull out 30 foreclosure houses from the auction block. But at the same time, he pointed out the need for a monumental restructuring to really contain the number of Georgia bank foreclosures.

Industry experts said that the flood of foreclosures in the state has significantly surpassed the number of successful loan modifications. They said that banks have already been given a massive help, but the initiative failed to stop the flow of foreclosures on the market.

As of end of June, the number of foreclosed homes peaked at 1.5 million and another 2.4 million properties are projected to go into foreclosures before the year ends. For the next five years, 13 million distressed properties are projected to be foreclosed.

Industry experts pointed out that the foreclosure crisis has now spread from subprime loans to prime loans. In fact, prime loan borrowers accounted for 27 percent of the total troubled loans, an increase of 17 percent compared to last year.

Meanwhile, 23 percent of American homeowners own properties that are worth less than their total mortgage. And what is alarming is that only 10 percent of troubled homeowners who are eligible to receive relief under the anti-foreclosure prevention plan of the Obama Administration were given assistance.

The Rainbow PUSH has launched a campaign for a massive restructuring of troubled loans in an effort to alleviate the foreclosure problem.