All across the country the number of delinquent mortgages is at an all time high and Georgia is no exception. When a homeowner misses several mortgage payments in a row, he risks losing his home in foreclosure.
Georgia is a Non-judicial Foreclosure State
Georgia is a non-judicial foreclosure state. This means that a lender does not have to obtain a court order before it may foreclose. However, before a lender may begin foreclosure proceedings, it must first declare the loan in default. This usually happens if a homeowner has missed three or more mortgage payments or has otherwise violated the terms of the loan.
To declare the loan in default, the lender must notify the homeowner of the default by making a written demand and accelerating the loan. By accelerating the loan, the lender is declaring the full amount of the debt due and payable immediately.
Oftentimes after accelerating the loan, a lender will allow a homeowner to reinstate his loan. Reinstatement requires a homeowner to pay the mortgage delinquency in full, including:
- Principal;
- Interest;
- Late Fees;
- Escrow Shortages; and
- Attorney’s Fees.
If a homeowner does not reinstate the loan, the lender will begin foreclosure proceedings.
How Does the Georgia Non-Judicial Foreclosure Process Work?
The first step in a Georgia non-judicial foreclosure is the notification. The foreclosing lender must notify the original borrower or the current homeowner, if his identity is known, of the foreclosure. The notice of foreclosure must be mailed via certified mail to the borrower’s last known address. Most lenders will also send the foreclosure notice via regular mail as well.
The next step in the Georgia non-judicial foreclosure process is publication. The lender must publish a notice of foreclosure in the legal organ (newspaper) for the county in which the property is located. The foreclosure notice must contain the following information:
- The date, time, and place of the foreclosure sale;
- The names of the lender and the borrower;
- The legal description of the property; and
- A reference to the power of sale provision in the deed to secure debt or security deed.
The foreclosure notice must run once a week for four consecutive weeks immediately prior to the foreclosure sale. All foreclosure sales throughout the state of Georgia take place on the first Tuesday of each month between 10:00 a.m. and 4:00 p.m.
In Georgia, most non-judicial foreclosure sales take place on the courthouse steps in the county where the property is located. The sale is conducted in an auction like format with the property going to the highest bidder. If there are no bidders, the lender will be deemed the highest bidder. A power of sale deed is used to transfer title to the property to the winning bidder.
Getting Legal Help
The time from default to foreclosure in Georgia can be less than 35 days. So, if you are facing foreclosure, you should immediately contact an experienced foreclosure attorney in your area. A foreclosure attorney may be able to assist you in negotiating a work-out with your lender or in making a legal challenge to the foreclosure.
