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Georgia Foreclosure Law
Both court and out-of-court foreclosure proceedings are
available in Georgia. An out-of-court foreclosure in Georgia can
be completed in less than two months.
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. 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. Georgia
does not require lenders to warn the borrower before starting
the foreclosure process, although the mortgage or deed of trust
might demand this. 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 / Auction
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
names. 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 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. There is no right of redemption for the
borrower following a foreclosure sale in Georgia.
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