What is Foreclosure? Foreclosure is a legal process in which a person, who has made a mortgage (the mortgagor) in order to borrow money, loses his or her rights to the mortgaged property.

In Georgia, once a borrower falls behind and a lender initiates foreclosure, a house can be sold at an auction on the courthouse steps in as few as thirty-seven (37) days. Texas and Tennessee are the only other states that allow foreclosures to proceed as quickly. The State of Georgia allows a foreclosure to take place with no judicial or government oversight. This law was set in place in the "1880s" and hasn't been revised much since that era.

I recently read an article in the "Creative Loafing" that November (2006) was a record month for Fulton County. Approximately 4,300 properties were lost to foreclosure in that month and as many publications have noted, the future will produce higher numbers.

It is my belief that the rising growth of 80/20 loans are a primary reason for the increase in foreclosed properties. 80/20 loans are quite simple yet can be deadly. The first mortgage is 80% of the sales amount of the property you are purchasing. The 20% second mortgage is designed in part so you won't have to pay a down payment nor closing costs in many instances. The deadly part is that mostly the second mortgage is an adjustable rate mortgage (and adjust it does). I have seen borrower's second mortgage payment increase by as much as $400.00. For many homeowners and investors this starts an uphill struggle.

We at Taylor 1 inc. are assisting many homeowners in not joining in this number and the proven method we use is the "Short Sale"!