Q. When can a lender foreclose?

A. Georgia law doesn't decide when you have defaulted on your mortgage. That's between you and your lender. If you read your contract closely, you're likely to find you can be considered in default if you are one day late with your payment. Most mortgage holders, however, do not start foreclosure proceedings until a homeowner has missed two or three payments.

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Q. What's the first step?

A. You'll get a letter demanding all past-due payments and late fees. Standard mortgage contracts give borrowers 30 days to come up with the money, but the time frame can be much shorter. If you have an FHA loan, the lender must take several steps to work with you to try to avoid foreclosure. Most lenders require that you pay the full amount owed to stop foreclosure, and most will refuse to take less.

Q. What if I can't come up with the money?

A. If past-due payments aren't made in time, the lender will "accelerate the loan." That means the homeowner must pay off the entire mortgage — not just the overdue payments — to hold on to the house. The lender will schedule a foreclosure sale. Unlike in some other states, the lender does not have to get permission from a judge or any official body to foreclose.

Q. How does the sale work?

A. Georgia law requires that a lender advertise plans to foreclose in the official legal publication for the county for four consecutive weeks before the sale is scheduled. If the owner lives in the house, the law requires that the homeowner be given notice of the sale at least 15 days before.

Q. How is the sale conducted?

A. Georgia law permits foreclosure sales to be held only on the first Tuesday of each month. The law also requires that the sales be held between 10 a.m. and 4 p.m. on the steps of the county courthouse where the property is located. Agents for the lender auction off the property and the highest bidder becomes the owner. The loan is paid off and extra money covers debts such as a second mortgage or other liens. In the rare cases where there is money left after other claimants have been paid, the former property owner gets the excess. Georgia offers no "right of redemption" — the chance some states give owners to buy their houses back after a foreclosure sale, if they can.

Q. Do I have any options once the lender has scheduled the sale?

A. Yes. You can try to raise sufficient money to pay off the entire mortgage. You can sell the house yourself and pay off the debt. Or you can declare bankruptcy, which will stop the sale, at least temporarily. But to keep the house, you will have to resume making mortgage payments and pay the overdue payments and fees through a bankruptcy plan. Homeowners are often targets once their foreclosure is advertised. Their mailboxes will be full of advertisements from bankruptcy attorneys, real estate investors and a few con artists. Consumer advocates warn owners to be wary of people who offer to "save" their houses. Even though they may suggest otherwise, it's likely they are trying to buy the house outright for much less than it's worth.