Does a lawyer have the ability to help me avoid a deficiency judgment in Georgia?

Georgia's foreclosure laws allow a lender to pursue a deficiency judgment in a non-judicial foreclosure if the proceeds of a foreclosure sale does not satisfy the outstanding mortgage balance. In a deficiency action, the lender may use legal remedies against the defaulting owner to collect on the debt.

Georgia Non-judicial Foreclosures and Deficiency Judgments

In a non-judicial foreclosure in Georgia, the lender must confirm the foreclosure sale before the lender is allowed to pursue a deficiency judgment against the borrower. The lender has 30 days from the date of the foreclosure sale to begin the confirmation process. If the confirmation process is not brought within the 30 days, the lender is barred from pursuing a deficiency judgment. The lender must provide the homeowner a minimum of five days notice before the confirmation hearing. 

At a confirmation hearing, the court looks at whether the foreclosure sale price was equal to the actual fair market value of the property; and whether the foreclosure sale was conducted according to statutory requirements. For example, notice must be given and the sale must be sufficiently advertised. If the sale was held on a date other than that included in the notice, then the sale was not properly advertised. In this case, the confirmation will be denied as well as any subsequent pursuit of a deficiency judgment.

Additionally, the lender must prove that the proceeds from the sale were equal to the current fair market value for the property. Fair market value is determined as of the date of the foreclosure sale and is defined as the price a ready, willing and able buyer would pay for the property in an arms-length transaction.

Talk with an experienced attorney to further discuss avoiding deficiency judgment in Georgia.