In Georgia, lenders may foreclose on deeds of trusts or mortgages in
default using either a judicial or non-judicial foreclosure process.
There are several types of foreclosures recognized in Georgia.
- Judicial Foreclosure – The judicial process of
foreclosure requires the filing of a lawsuit to obtain a court order to
foreclose, is used when no power of sale is present in the mortgage or
deed of trust. If the court declares a foreclosure, the property will
be auctioned off to the highest bidder.
- Non-Judicial Foreclosure – This type of foreclosure
is used when a power of sale clause exists in a mortgage or deed of
trust. The Power of Sale Clause is a clause in which the borrower
pre-authorizes the sale of property to pay off the balance on a loan in
the event of their default.
- Guidelines for Power of Sale Foreclosures – If the
deed of trust or mortgage contains a power of sale clause and specifies
the time, place and terms of the sale, then that procedure must be
followed. Otherwise, the non-judicial power of sale foreclosure is
carried out as follows:
- Foreclosure notice must be mailed by certified mail, return receipt
requested to the borrower no later than 15 days prior to the date of the
foreclosure sale. The time period begins the day the letter is
postmarked. The notice must be mailed to the address given to the
lender by written notice from the borrower.
- The notice must be published in the newspaper of general circulation
in the county where the sale will be held once a week for 4 weeks
proceeding the date of the foreclosure sale.
- The sale must be made by public auction on the first Tuesday of the month between 10:00AM and 4:00PM at the courthouse.
- It is also important to keep in mind that lenders may seek a deficiency judgment.