The Georgia Foreclosure Process
The overwhelming majority of all foreclosures in Georgia are accomplished by the use of the power of sale. This is a non-judicial sale, wherein the lender declares default, follows the statutory notice and sells the property on the courthouse steps. Breach letter
The first step in enforce default, the lender must 1) make a written demand upon the borrower (mortgagor) setting forth a breach and accelerating the debt (declaring the entire debt due and payable immediately).
Notice of Sale Letter
The Lender must serve a notice on the homeowner 15 days prior to the date of the sale. A notice of sale must be served on the original mortgagor or current owner (if his identity has been made known to or acknowledged by the lender) by certified mail, return receipt requested. The notice must be sent to the borrowers last known address, which is the address listed on the Deed to Secure Debt or an address the borrower has subsequently designated with notice by certified mail to the lender. It is generally a best practice to provide notice by regular and certified mail to all known addresses for every borrower. The notice must be postmarked and provided to the defaulting borrower no later than 15 days prior to the date of proposed sale.
NEWSPAPER PUBLICATION
Prior to the sale taking place the lender must have published the scheduled foreclosure sale in the legal organ (newspaper) for the county in which the real property collateral is located for four (4) consecutive weeks immediately preceding the first Tuesday of the month (sale day). The notice of sale must contain the date, time and place of sale along with a description of the property, the names of the mortgagee and mortgagor and a reference to the power of sale provision.
Foreclosure Sale
The foreclosure always occur on the first Tuesday in every month on the courthouse steps of the particular county. Exceptions are made for certain legal holidays that may fall on the first Tuesday. The sale must be conducted between 10:00 a.m. and 4:00 p.m.. Sales are generally conducted by the foreclosing attorney, and the foreclosing attorney is permitted to credit bid at the sale on the lender’s behalf.
Successful bidders are required to tender the full amount of their bid in cash or certified funds immediately upon the conclusion of the sale, except if foreclosing lender is the successful bidder. Should a sale be postponed, terminated or voided, the entire foreclosure process must be repeated. Once the sale occurs, the foreclosing attorney prepares and issues to the successful purchaser a Deed Under Power of Sale which gets recorded in the land records of the particular county in which the property is located. Once a sale is concluded on the courthouse steps, there is no right to redeem given to the defaulting borrower (mortgagor).
Motion To Confirm The Sale: The banks effort to make you pay a deficiency judgment
In situations where the foreclosure sale does not produce enough cash to pay the loan balance in full (after deducting expenses and accrued unpaid interest), the lender may elect to obtain a personal judgment against the borrower for the unpaid balance. This deficiency process in Georgia is accomplished through confirmation of the foreclosure sale. For the foreclosure sale to be confirmed an application must be brought to the Superior Court in the county in which the sale occurred within 30 days of the sale, otherwise the right to pursue a deficiency is lost.
The Judge will generally examine how the sale was conducted to determine whether the property was sold for its fair market value. The lender must enter a minimum bid equal to at least the fair market value of the property for the sale to be confirmed
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