Understanding the Foreclosure Laws in Georgia

The Georgia State Foreclosure Law allows for right of redemption and deficiency judgments. When the mortgage agreement or the deed of trust between the lender and the borrower does not contain a power of sale clause then any dispute regarding defaulted payment is resolved using a judicial foreclosure procedure. The first step for a lender in Georgia who wants to file for foreclosure is to file a lawsuit. The lawsuit will get him a court order for foreclosure of property. When this court order is issued then the foreclosure property is put up for public auction and sold to the highest bidder. Under such conditions, if the highest bid at the auction is less than the outstanding of the loan, the lender can file for deficiency judgment. The State of Georgia allows borrowers a maximum period of one year to redeem the foreclosure property.

The Power of Sale Clause

If the security instrument contains a power of sale clause then a non judicial process can be used for foreclosure of property. Under the terms of the "power of sale" clause the borrower commits himself to an agreement which makes him agree to a sale of the property if there are defaults in payment according to previously agreed terms. The one fact that makes a non judicial procedure different from a judicial procedure is the absence of a court order for the auction of foreclosure property. In the event of a non judicial foreclosure the lender or a representative appointed by him can conduct the foreclosure sale.

Generally a non judicial power of sale clause contains specific terms of sale. In the absence of such specifications the Georgia State Foreclosure Law lays down certain guidelines that should be adhered to. At least fifteen days prior to the foreclosure sale, the borrower must receive a notice of foreclosure with relevant details. The lender should make sure that he has a receipt for the notice received by the borrower. A copy of the notice must also be sent to all other persons whose name is mentioned in the property records or who reside in the said property. The notice for sale of foreclosure of property must be published in newspapers in the county of Georgia where the property is located. The frequency of publication in newspapers must be once a week for four continuous weeks.

The method of sale adopted for foreclosure property in Georgia is through public auction to the highest bidder. Georgia State Foreclosure Law specifies the first Tuesday of every month before 4.00 pm in front of the county court house, as the time and place of public auction of foreclosure properties.

 

Learning Process when Buying a Foreclosure

The Learning Process: Buying Homes in Foreclosure With so many advantages to buying foreclosed homes, why isn't everyone doing it? Because there are some important disadvantages to doing so. The disadvantages are manageable, but only if you're well aware of what you're getting into before making an offer on a foreclosed home. Liens and liabilities. Foreclosed properties may have liens from unpaid taxes or liabilities regarding the property title. These hassles can increase the paperwork burden and make the process of buying foreclosures more expensive. Fortunately, a little preemptive research and help you avoid these time wasters. Former homeowners. Sometimes the former owners of a foreclosed property are in denial and refuse to move out of the home. If you're the unlucky buyer, evicting them will be your responsibility. But again, doing research in advance and working with a professional real estate agent can obviate the situation. Property condition. Many foreclosed properties are in good condition in beautiful neighborhoods, but some are rundown and reflect the financial difficulties that the previous owners were facing. The latter require significant repairs and renovation, which is fine if you want a fixer upper, but it's not something you want to discover after purchase. Be sure to give the home a thorough inspection before buying it, so that you won't be unpleasantly surprised by leaky roofs and septic tanks after purchase. Different buying procedure. When buying a home in the foreclosure market, you'll find that you need to do more research and paperwork and exercise more caution than you would in a traditional real estate market, because foreclosed homes are sold as is, without any guarantees. But given the profiting potential of these homes, the extra paperwork seems a small price to pay. Clearly, understanding the pros and cons of foreclosures will be critical to your ability to make a profit and find the home of your dreams. Call or email us today and we will show you how!