The Georgia Foreclosure
Process
In Georgia both *court and out-of-court
foreclosure proceedings are available. An out-of-court
foreclosure in Georgia can be completed in less than two
months.
|
Court
Foreclosures
|
Out
of Court Foreclosures
|
Process
Period
(Days)
|
Sale
Publication
(Days)
|
Redemption
Period
|
|
x
|
x
|
37
|
32
|
None
|
*Court foreclosure
are not common
Pre-Foreclosure Period
A court foreclosure
occurs when there are title problems or the mortgage or trust
deed lacks a clause permitting an out-of-court proceeding. The
process begins when a lender files a petition describing the
situation, the property, and the default amount. The borrower
then receives a 30-day written notice in which the default must
be paid to the court. If the default is not resolved, a
foreclosure sale is scheduled.
Out of Court Process
The out-of-court
process is more common, as most mortgages and trust deeds
contain a clause giving a lender the power to sell the property
outside of the court system. The lender starts the foreclosure
process by scheduling a foreclosure sale.
Be
Warned
Georgia State Law DOES
NOT require lenders to warn borrowers before starting the
foreclosure process, although the mortgage or deed of trust may
demand this.
Stopping The Foreclosure Process
If the mortgage or deed of trust allows, the borrower can stop
the foreclosure by paying off the default amount plus
applicable costs, but Georgia state law does not automatically
give this reinstatement right to the borrower. The borrower can
always stop the foreclosure by paying the total loan
balance.
Notice of Sale
A notice of sale is published once a week for the four weeks
before the sale. The notice is also sent to the borrower a
minimum of 15 days before the sale date. The notice must
include the date, time, and location of the sale; a description
of the property; mortgage information and the lender and
borrower’s names.
The Foreclosure Auction
The foreclosure
sale is at the county courthouse on the first Tuesday of the
month between 10:00 a.m. and 4:00 p.m. The winning bidder, if
other than the lender, is required to pay the full bid amount
to the person conducting the sale immediately following the
sale. If a foreclosure sale is cancelled, the foreclosure
process starts over again.
After The Auction
After court-ordered
foreclosure sales, a confirmation hearing is scheduled and the
borrower is notified within five days of the hearing. If the
sale price of the property is at least market value of the
property, the court confirms the sale. If not, the court may
order a new sale.
Right of Redemption
In Georgia there is no
right of redemption for the borrower following a foreclosure
sale.
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