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Deficiency Judgement in Georgia

Discussion in 'Foreclosure Laws' started by houseinga, Oct 2, 2012.

  1. houseinga

    houseinga LoanSafe Member

    I understand that in GA there is a 30 day window for banks to seek a judgement after a foreclosure sale. My house is up for auction today. However, the bank has set the starting bid at the full amount owed which is well above the property value and I'm sure there will be no bids. So in that case my understanding is that the house will revert to the bank as an REO. Does this transaction trigger the 30 days or am I still waiting for the bank to actually sell the property sometime in the future before that 30 day window begins?
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thanks for joining the forum.
    If the lender decides to pursue the deficiency it must be done 30 days following the foreclosure sale which is the day the property goes to auction.

    "If the lender seeks a deficiency judgment in Georgia, the lender must file for a deficiency within thirty (30) days of the foreclosure sale and follow the procedures outlined in OCGA § 44-14-161, or the claim for a deficiency is barred. The foreclosure sale must be confirmed and the deficiency judgment must be approved by a judge of the Superior Court in the county in which the sale occurred."
  3. houseinga

    houseinga LoanSafe Member

    So if the house doesn't receive a bid but instead goes back to the bank, what number would a judgement be based on?
  4. Gaphoneman

    Gaphoneman LoanSafe Member

    If the bank set opening bid at amount owed on mortgage, that would be winning bid. There should be no deficiency at that point. My walk is not yet complete so I'm also interested in any feedback this thread gets. Who is your bank? Servicer? I understand from my research that deficiencies are rare in Ga. Good luck!
  5. houseinga

    houseinga LoanSafe Member

    Thanks. I'm hoping that this is the case and other than trashed credit I'm close to done with this house. My bank is Suntrust with a Fannie backed loan. Suntrust was incredibly hard to deal with.
  6. Gaphoneman

    Gaphoneman LoanSafe Member

    I'm an old TBW backed by Freddie and not a word except billing statements since July. Wish it was over.
  7. houseinga

    houseinga LoanSafe Member

    Hopefully yours will go quicker than mine. I missed my first payment in May 2011. The house didn't go to auction until yesterday.
  8. Iridium

    Iridium LoanSafe Member

    I've been wondering about the OP's question as well, though a slightly different situation. What if there are no bids at the foreclosure sale? Does that still count as sold, and that therefore the "sale is confirmed?"

    A coworker of mine had something along those lines happen. He'd had a short sale buyer lined up, but the bank denied it, so he let it go into foreclosure. There was a sale date set in December. After the date passed he didn't hear anything and just let it go. But after a few weeks he started getting calls from the bank again. This time they were more cheerful, helpful sounding tones, telling him they want to help him stay in his house. He told them no, screw you, you had a chance at a short sale and screwed me, etc. They replied saying they had no record of any sale date at all.

    In retrospect it seems that either it wasn't able to sell at auction (we wouldn't be surprised at this, the community in question has an absolute glut of foreclosures and prices are still going down there in spite of the national uptick), or the auction was canceled at the last minute and he didn't get notified. But in either case, could it then therefore go to auction again? And if so, would he be on the hook again for a potential judgement?

    Deficiency judgments in this area are exceptionally rare due to the aforementioned foreclosure glut, so he's not worried about it, but the question has been occurring to me.
  9. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    If the bank does not get sold at auction it will be transferred back to the lender.. However, what it sounds like happened in this scenario is the foreclosure was either postponed or canceled altogether because he was actively trying to avoid foreclosure (ie short sale). This happens all the time and the lender is not going to notify the borrower (in most cases) that the sale has been stopped. They may have cancelled the sale and this is the reason the reps are not showing any sale dates in their systems.

    Yes, the home will eventually be foreclosed on if a short sale, loan mod, etc is not accomplished..

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