What is a Foreclosure?
The forced sale of property by a lender, after a borrower defaults on the loan. (see also our Short Salepage)
Glossary of Terms - Click here to download our Foreclosure Glossary
About Georgia Foreclosures
- Judicial Foreclosure Available.........Yes
- Non-Judicial Foreclosure Available..Yes
- Primary Security Instruments.........Deed of Trust, Mortgage
- Process Timeline..........................Typically 90 days
- Right of Redemption Allowed..........Yes
- Deficiency Judgments Allowed........Yes
In Georgia, lenders may foreclose on mortgages in default using either a Judicial or Non-Judicial Foreclosure process.
Judicial Foreclosure
A process in which a lawsuit is filed to obtain a court order to foreclose. After the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
A non-judicial process is used when a "power of sale" clause exists in a mortgage or deed of trust. A "power of sale" clause says the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. Power is given to the lender to sell the property, and may be executed by the lender or their representative, typically referred to as the trustee.
- 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 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.
Additional Resources:
| www.hud.gov |
official site of the |
| www.financialstability.gov | Learn about new Loan Modification programs |
| 1-888-995-HOPE | "Hope Now" is an alliance between HUD approved counseling agents and mortgage market participants to provide foreclosure prevention assistance. |
| www.hopenow.com | Find your mortgage company, and more. |
| www.consumer.georgia.gov | Georgia Governor's Office of Consumer Affairs |
| www.stopforeclosure.com | Additional information by State |
