Georgia Foreclosure Laws

Georgia allows both judicial and non-judicial foreclosures, but judicial foreclosures are far less common in the state. A non-judicial foreclosure process takes less than two months in Georgia. Once a foreclosure sale has taken place in Georgia, the debtor has no right of redemption.

Non-judicial Foreclosures in Georgia

Out-of-court foreclosure proceedings are the most common in Georgia and most mortgages and deeds of trust in the state include a right of sale clause which permits the lender to foreclose without going to court. The non-judicial foreclosure procedure begins with the scheduling of a foreclosure auction. Unless the mortgage or deed of trust demand it, lenders do not need to alert the debtor before initiating foreclosure.

Some deeds of trust or mortgages allow the debtor to halt foreclosure proceedings by paying the default amount and associated fees. However, Georgia foreclosure laws do not offer this right automatically if it is not mentioned in the deed of trust or mortgage. Debtors can stop the foreclosure process in any case by paying the total balance owing on the loan.

Once the foreclosure process has been started and the auction date determined, a notice of sale must be published for four weeks before the auction, at a rate of once per week. The notice needs to include mortgage information, debtor and lender names, property details, and details about the time and location of the auction. The notice also must be sent to the debtor at least fifteen days before the auction. If the foreclosure sale needs to be cancelled for any reason, the lender must begin the foreclosure process again.

Most foreclosure auctions are held at the county courthouse, between 10:00am and 4:00pm. Usually, these auctions take place on the first Tuesday of every month. If the winning bidder is not the lender, he or she needs to pay the full bid amount at once to the person conducting the sale.

Judicial Foreclosures in Georgia

In-court foreclosure proceedings are less common in Georgia and usually take place when a mortgage or deed of trust has no right-of-sale clause that permits the lender to foreclose without a court. Judicial foreclosures are also sometimes used when there are title problems with a property. A judicial foreclosure begins when a lender files a petition in court. This petition described the default, the property, and any circumstances relevant to the foreclosure. The debtor then is given a written notice and thirty days to pay the default to the court. If the situation is not resolved, the court can schedule a foreclosure auction.

Judicial foreclosures end in notices of sale and auctions, just like out-of-court foreclosures. However, after an auction for a judicial foreclosure in Georgia, a hearing is ordered to confirm the sale. The debtor must be notified within five days of the hearing of the decision. If the winning bid price is at least the same as the market value of the property, the court will usually decide to confirm the sale. If the winning bid is under the market value of the property, the court may choose to order a new auction to take place.