Georgia Foreclosure Law

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Below you will find information specific to Georgia foreclosure law. A brief breakdown of foreclosure facts are listed in the table and are defined more thoroughly just below the table:

Judicial Foreclosures	YES
Non-Judicial Foreclosures	YES
Primary Security Instruments	Deed of Trust (also called Deed to Secure Debt or Security Deed), Mortgage
How long does it take?	37 days
Right of Redemption	No
Deficiency Judments Allowed?	Yes
Sale Publication Period	32 days
Sale/NTS	Trustee

 

Judicial Foreclosures

In Georgia, a lender may foreclose on a property utilizing either a judicial or power of sale process; the judicial foreclosure is less common. In a judicial foreclosure, Georgia foreclosure law requires the lender to file a complaint against the borrower. After the complaint is filed with the court along with a lis pendens, the homeowner will be given a 30-day period to cure the default by making a payment to the court. If a payment is not received within the timeframe established, the auction sale date is then scheduled at the time the court issues a final judgment of foreclosure.

 

Non-Judicial Foreclosures

The power of sale clause is is more frequently present in the deed of trust than in the mortgage agreement, making the deed of trust the primary security document in Georgia foreclosure law.

 

Timeline

Prior to starting the process of foreclosure, the lender is required to send out a letter to the borrower demanding payment of all past due amounts in lieu of foreclosure. The homeowner has 10 days to bring his or her account current along with applicable late fees; there are no attorney fees at this point. If a payment is not received in a timely manner, the lender must post the notice of sale in the major county paper on a weekly basis for 4 weeks. The homeowner must also receive a copy of this notice of sale via certified mail at least 30 days before the scheduled sale date. Properties are foreclosed at the courthouse steps, on the first Tuesday of each month between the hours of 10AM and 4PM. The high bidder, other than the lender, is required to pay the individual conducting the sale the full amount of the bid. A hearing is scheduled after the sale and the homeowner is notified within 5 days of the hearing. If the public auction resulted in the sale of the property at fair market value, the court recognizes the sale. Otherwise, the court may order a new sale.

Right of Redemption

The security instrument used with Georgia foreclosure law, be it a deed of trust or mortgage, may allow the homeowner to stop the foreclosure of his home by paying off the default amount owed to the bank along with all costs accrued doing the default period. Georgia state law does not call for this right; it simply depends on the verbiage of the security document. The homeowner can however stop foreclosure at anytime by paying the full amount of the loan. However, once a deed under a power of sale is given to the highest bidder following the foreclosure sale of a property, the state of Georgia does not recognize a statutory right of redemption which allows a homeowner to regain the rights to his or her property by paying off the loan in full.

 

Deficiency Judgement

According to Georgia’s laws and regulations, the lender has 30 days after a foreclosure sale is completed to file a deficiency judgment against the former homeowner if the auction proceeds do not satisfy the loan amount owed by the borrower.

 

Related Links:

Georgia Foreclosure Attorneys: Here you'll find a list of foreclosure attorneys specific to your area. Speak with an attorney that can help you make the best decision possible.
Notice of Sale: Understand what it is and how it relates to the foreclosure process.
Deficiency Judgment: Allows lenders to get a judgement against you in the amount of the deficiency after a sale at auction. Read more about it here.
Right of Redemption: Even if you've lost your property to auction, you may be able to get it back. Here is more information about what right of redemption actually is.