- 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.
More information on Georgia foreclosure laws.
