The Georgia Foreclosure Process

In Georgia both *court and out-of-court foreclosure proceedings are available. An out-of-court foreclosure in Georgia can be completed in less than two months.

Pre-Foreclosure Period
A court foreclosure occurs when there are title problems or the mortgage or trust deed lacks a clause permitting an out-of-court proceeding. The process begins when a lender files a petition describing the situation, the property, and the default amount. The borrower then receives a 30-day written notice in which the default must be paid to the court. If the default is not resolved, a foreclosure sale is scheduled.

Out of Court Process
The out-of-court process is more common, as most mortgages and trust deeds contain a clause giving a lender the power to sell the property outside of the court system. The lender starts the foreclosure process by scheduling a foreclosure sale.

Be Warned
Georgia State Law DOES NOT require lenders to warn borrowers before starting the foreclosure process, although the mortgage or deed of trust may demand this.

Stopping The Foreclosure Process
If the mortgage or deed of trust allows, the borrower can stop the foreclosure by paying off the default amount plus applicable costs, but Georgia state law does not automatically give this reinstatement right to the borrower. The borrower can always stop the foreclosure by paying the total loan balance.

Notice of Sale
A notice of sale is published once a week for the four weeks before the sale. The notice is also sent to the borrower a minimum of 15 days before the sale date. The notice must include the date, time, and location of the sale; a description of the property; mortgage information and the lender and borrower’s names.

The Foreclosure Auction
The foreclosure sale is at the county courthouse on the first Tuesday of the month between 10:00 a.m. and 4:00 p.m. The winning bidder, if other than the lender, is required to pay the full bid amount to the person conducting the sale immediately following the sale. If a foreclosure sale is cancelled, the foreclosure process starts over again.

After The Auction
After court-ordered foreclosure sales, a confirmation hearing is scheduled and the borrower is notified within five days of the hearing. If the sale price of the property is at least market value of the property, the court confirms the sale. If not, the court may order a new sale.

Right of Redemption
In Georgia there is no right of redemption for the borrower following a foreclosure sale.