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Georgia Foreclosure Law
In the state of Georgia foreclosures can be done on an mortgage or deed of trust that is in default. In the state of Georgia foreclosures can be both judicial and non-judicial. This will be determined by whether or not the mortgage or deed of trust contains a Power of Sale clause. The normal foreclosure process in the state of Georgia takes 90 days or 3 months.
Judicial Foreclosure
The Judicial Foreclosure process is used when the mortgage or deed of trust does not include a Power of Sale clause. In a judicial foreclosure, the lender files a lawsuit and obtains a court order allowing them to foreclose on the property. The court must reside in the same county as the property that is being foreclosed upon. Once the foreclosure is granted an auction will be announced and the home will be sold to the highest bidder.
Non-Judicial Foreclosure
If the mortgage or deed of trust contains a Power of Sale the lender may foreclose without going to court. The right to sell the property may be practiced by a trustee, or a representative of the lender. Typically, the process will follow the Power of Sale which will include the date, time, place and procedure of the auction process.
If these details aren't mentioned in the clause the foreclosure will proceed as follows:
First, the lender or trustee records a Notice of Sale in the county office where the borrower's home is located. The company is them given 5 days to send a copy of the notice of sale by certified mail to the borrower and any other parties involved. The notice is also published in a county newspaper at lease once a week for 4 consecutive weeks. The last notice should be published at least 10 days before the sale date.
Provided it doesn't disturb the peace, lenders can also post the notice on the property and the courthouse where the sale date is scheduled. The has to be done at least 20 days ahead of the specified auction date.
The lender can then sell the home for cash to the highest bidder, or set a "credit bid" wherein part or all of the money owed is canceled. Once the sale is confirmed, the buyer must make the payment by 5 pm of the same day, except on Saturdays and legal holidays. Otherwise, the lender can extend the deadline or postpone the sale. If they choose the latter, they have to post a notice specifying the new date at the venue of the last auction. The proceeds of the sale will be used to pay off the obligations of the loan, and distributed among the junior lien holders.
Right of Redemption and Deficiency Claims
In both Judicial and Non-Judicial foreclosure, the homeowner has no right of redemption. This means that he or she cannot regain possession of the property after the sale is held, even if they pay the sale price, interest and attorney's fees. Lenders can also file a deficiency suit if the sale does not cover the entire balance of the loan.