Georgia Foreclosure Law

In Georgia, foreclosures are carried out on defaulting mortgages and deeds of trust. Both judicial and non-judicial processes are followed, depending on the lender’s selling rights outlined in the contract. The wait time is approximately 90 days.

Judicial foreclosure
A judicial foreclosure is followed when the contract does not include a Power of Sale. This clause would give the lender the right to sell the home if the borrower defaults on the loan. Without this clause, the lender has to bring the case to court and obtain a court order allowing them to foreclose. Once the foreclosure is declared, the property is put up for auction and sold to the highest bidder.

¬Non-judicial foreclosure
In a non-judicial foreclosure, the process usually follows the terms specified in the Power of Sale clause. If the clause does not indicate a sale date, time, and other significant terms, the following steps are carried out:

1) The lender sends a foreclosure notice by certified mail to the lender, along with a request for a return receipt. This must be done at least 15 days before the intended foreclosure sale. The wait time starts on the day the message is postmarked.

2) The notice is then posted on a newspaper with general circulation in the same county where the foreclosure sale will be held. The ad must run for at least four weeks before the sale date.

3) A public auction for the home is held at the county courthouse on the first Tuesday of the month, between 10am and 4pm.

Right of redemption and deficiency claims

In both judicial and non-judicial foreclosure, the homeowner has no right of redemption. This means he or she cannot regain possession of the property after the sale is held, even if they pay the sale price, interest and attorney’s fees. Lenders can also file a deficiency suit if the sale does not cover the entire balance of the loan.

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