Georgia Foreclosure Laws

Georgia foreclosures can be both judicial and non-judicial foreclosures, but most Georgia mortgages contain Powers of Sale clauses allowing the lender to pursue foreclosure in the event of default through non-judicial means. Judicial foreclosures are only necessary when problems with the title exist or the mortgage lacks a Power of Sale clause, both of which are rare instances.

In the event of a default on a Power of Sale mortgage, the lender can go right ahead and schedule a foreclosure sale of the homeowner's property in order to retrieve the amount of the loan. Notification of the homeowner regarding a scheduled sale is customary, though not required by Georgia foreclosures law.

Judicial foreclosures are similar to real lawsuits, as the lender must file a suit in court for a ruling on the issue of default. If the court finds default has occurred, they will grant the homeowner thirty days in which to pay the default amount. If this time passes without payment, the court will issue an order for the homeowner's property to be sold at public auction.

Either type of foreclosure can be halted if the homeowner can pay off the default amount owed before the sale takes place, although this does not guarantee reinstatement of the mortgage.

Before the sale, the lender or county clerk will draft a Notice of Sale that indicates the time, location and terms of the foreclosure auction. This Notice must be published in a local weekly newspaper for a month leading up to the sale. The homeowner is entitled to receive a copy of the Notice of Sale at least 14 days before it is scheduled to occur.

Georgia foreclosures auctions are generally held on the first Tuesday of the month at the county courthouse. Either a trustee of the lender or a court clerk auctions off the homeowner's property, and the winning bidder must provide immediate payment of their bid. All sales that are the result of judicial foreclosure are subject to the confirmation of the court. If the property has been sold for at least its appraised market value, the court will positively confirm the sale and transfer ownership to the winning bidder. If the property is undersold, the court may order that the sale is void and schedule another sale in order to make sure the lender receives a fair price.

Neither judicial or non-judicial Georgia foreclosures allow the original homeowner any rights to redemption once a sale has ended or been confirmed.

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