- 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.
