Georgia foreclosure laws
Foreclosure of deeds of trust and mortgages in default in Georgia are governed by Georgia foreclosure laws. This law allows lenders to take recourse to both judicial and non judicial processes whenever there is a real estate foreclosures issue. The usual time taken for completion of a foreclosure procedure is about four months. The important security instruments used in foreclosure proceedings are deeds of trust and the mortgage documents. The Georgia State Foreclosure Law allows for right of redemption and deficiency judgments.
When the mortgage agreement or the deed of trust between the lender and the borrower does not contain a power of sale clause then any dispute regarding defaulted payment is resolved using a judicial foreclosure procedure. The first step for a lender in Georgia who wants to file for foreclosure is to file a lawsuit. The lawsuit will get him a court order for foreclosure of property. When this court order is issued then the foreclosure property is put up for public auction and sold to the highest bidder. Under such conditions, if the highest bid at the auction is less than the outstanding of the loan, the lender can file for deficiency judgment. The State of Georgia allows borrowers a maximum period of one year to redeem the foreclosure property.
If the security instrument contains a power of sale clause then a non judicial process can be used for foreclosure of property. Under the terms of the "power of sale" clause the borrower commits himself to an agreement which makes him agree to a sale of the property if there are defaults in payment according to previously agreed terms. The one fact that makes a non judicial procedure different from a judicial procedure is the absence of a court order for the auction of foreclosure property. In the event of a non judicial foreclosure the lender or a representative appointed by him can conduct the foreclosure sale.
Generally a non judicial power of sale clause contains specific terms of sale. In the absence of such specifications the Georgia State Foreclosure Law lays down certain guidelines that should be adhered to. At least fifteen days prior to the foreclosure sale, the borrower must receive a notice of foreclosure with relevant details. The lender should make sure that he has a receipt for the notice received by the borrower. A copy of the notice must also be sent to all other persons whose name is mentioned in the property records or who reside in the said property. The notice for sale of foreclosure of property must be published in newspapers in the county of Georgia where the property is located. The frequency of publication in newspapers must be once a week for four continuous weeks.
The method of sale adopted for foreclosure property in Georgia is through public auction to the highest bidder. Georgia State Foreclosure Law specifies the first Tuesday of every month before 4.00 pm in front of the county court house, as the time and place of public auction of foreclosure properties.
