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Georgia Foreclosure Law Summary
Quick Facts
- 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.
Click here for more information on Georgia foreclosure laws.
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