Georgia Foreclosed Homes
Georgia, like a majority of other states, has watched the number of foreclosure filings rise significantly over the past year. With a large percentage of adjustable rate mortgages (ARMs) expected to reset in the next two years, many local experts believe the number of GA foreclosed homes will only continue to grow.
Georgia Foreclosure Trends
Atlanta is one such community experiencing a record number of foreclosures due in large part to the ARM resetting phenomenon. The effects are being seen already. In just one month in early 2008, over 7400 foreclosures were auctioned off on courthouse steps around metro Atlanta. Compare that to the expectation that 6,000 - 8,000 properties are scheduled to be foreclosed on in one day – June 3, 2008. Equity Depot reported that for the first five reporting periods of the year, the number of properties scheduled for auction was nearly 46% higher than the first five periods of 2007 – and it still appears to be trending upwards.
Unlike Florida, where the foreclosure process can take over a year, Georgia is amazingly fast. No state has a quicker foreclosure process than Georgia. Once the process starts, the house can be sold on the courthouse steps in as few as 37 days. And state law mandates that foreclosure sales be conducted by the first Tuesday of every month.
Due to the dramatic rise in the number of Georgia foreclosures, in Q1 2008 one in every 12 metro Atlanta bank loans is past due – totaling approximately $13 billion.
Georgia cities experiencing an increase in foreclosure activity include Stone Mountain, Lawrenceville, Riverdale, Marietta, Augusta and Gainesville.
If there is a silver lining to be found in the foreclosure crunch, Georgia is experiencing it. Nationwide foreclosed homes are selling for approximately 85% of their initial loan value. But even with an increase in the number of Atlanta GA foreclosures, real estate investors and homebuyers alike agree that Georgia is a strong investment. Atlanta and the surrounding metro area remains an attractive location for middle to high income families. The local economy is still showing signs of growth and long-term home values in the past 2 to 5 years have increase approximately 6 percent. Compare this to California, where property values have plummeted 32% for the first quarter of 2008. Many market watchers still believe modest growth in Atlanta real estate values is likely to occur.