- Georgia recognizes two methods to foreclose on property. The judicial method requires the lending agent to file a lawsuit against the borrower once the loan has defaulted. The court will usually set a deadline for the payments to be made. If this deadline lapses with no payment, then the court will issue an order to sell the property to the highest bidder. A nonjudicial foreclosure allows the lender to bypass the court when foreclosing on the property. This is done through a power of sale clause, which is included in the mortgage contract.
- The power of sale clause details the required steps to complete the foreclosure process. In the event that this information is not present, then Georgia's statutes will apply. A copy of the foreclosure notice must be sent to the borrower via certified mail at least 15 days before the foreclosure sale commences. This notice must also be published in a local newspaper at least once per week for four weeks before the date of the sale. The auction must take place at the county courthouse, between 10 a.m. and 4 p.m., on the first Tuesday of each month.
- If the home sells for less than the balance due on the mortgage loan, then the lending agent may sue the borrower for payment of the difference. The lender must file a request for this deficiency judgment within 30 days of the sale being completed.
- Georgia is a title theory state. This means that the lending agent owns the property until the terms of the mortgage contract are completely satisfied. The trust deed transfers ownership of the property from the seller to the lending agent until the balance is paid in full. This theory impacts the foreclosure laws and procedures that are recognized in the state.
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