Georgia Foreclosure Law

[Moe Bedard]

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 90 days

- Right of Redemption: Yes

- Deficiency Judgments Allowed: Yes
In Georgia, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of
sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

A foreclosure notice must be mailed by certified mail, return receipt requested to the borrower no later than 15 days prior to the date of the foreclosure sale. The time period begins the day the letter is postmarked. The notice must be mailed to the address given to the lender by written notice from the borrower. No waiver or release of the rights to notice is valid if it was signed at the same time as the original documents.

The notice must be published in a newspaper of general circulation in the county where the sale will be held once a week for four (4) weeks proceeding the date of the foreclosure sale.

The sale must be made by public auction on the first Tuesday of the month between 10:00 am and 4:00 p.m. at the courthouse.
Lenders may seek a deficiency judgment in Georgia.

More information on Georgia foreclosure laws.

source http://www.foreclosurelaw.org/Georgi...losure_Law.htm

Georgia Foreclosure is Non-Judicial.

Send Pre-Acceleration Letter if not sent by client

According to Georgia foreclosure law, the FNMA security instrument requires 30 days written notice to the borrower that the loan will be accelerated and foreclosure commenced. Usually this letter is sent by the lender.
Send Acceleration/Demand Letter

This letter provides the borrower with 10 days in which to pay the entire debt without attorney fees being added pursuant to Georgia foreclosure law and provides the borrower with a copy of the newspaper ad pursuant to Georgia law.
Send foreclosure ad to newspaper

Foreclosure ads must be published once a week for four consecutive weeks in a newspaper having general circulation in the county in which the property is located immediately preceding the foreclosure sale date.
Conduct foreclosure sale

Georgia foreclosure law states that foreclosure sales may be held only on the first Tuesday of the month unless that day is New Years Day or July 4 in which event, foreclosures are conducted on the following day. The foreclosures must be conducted between 10:00 a.m. and 4:00 p.m.
File eviction if necessary

Eviction is judicial and generally takes about 30 days.

source http://www.foreclosureuniversity.com...ws/georgia.php

Notice of Sale / Auction
A notice of sale is published once a week for the four weeks before the sale. The notice is also sent to the borrower a minimum of 15 days before the sale date. The notice must include the date, time, and location of the sale; a description of the property; mortgage information; and the lender and borrower names.

The foreclosure sale is at the county courthouse on the first Tuesday of the month between 10:00 a.m. and 4:00 p.m. The winning bidder, if other than the lender, is required to pay the full bid amount to the person conducting the sale immediately following the sale. If a foreclosure sale is cancelled, the foreclosure process starts over again.

After court-ordered foreclosure sales, a confirmation hearing is scheduled and the borrower is notified within five days of the hearing. If the sale price of the property is at least market value of the property, the court confirms the sale. If not, the court may order a new sale.

source http://www.realtytrac.com/foreclosur...osure-laws.asp

There is no right of redemption for the borrower following a foreclosure sale in Georgia.