Can the lender come after you for the rest? Deficiency judgments in Georgia

Deficiency rules in Georgia, point by point

• The 30 day confirmation rule

  Within 30 days after the sale

  If the home sells for less than the debt, no action may be taken to get a deficiency judgment unless the lender reports the sale to the superior court judge of the county where the home is, within 30 days, and gets an order confirming and approving the sale.

  O.C.G.A. § 44-14-161(a)

• The judge checks the home's true market value

  At the confirmation hearing

  The judge must hear evidence of the home's true market value and should not confirm the sale unless the home brought that value. The judge also checks that the sale was properly advertised and run, and can order a resale.

  O.C.G.A. § 44-14-161(b), (c)

• You get notice and can take part

  At least 5 days before the hearing

  You must get notice of the confirmation hearing. You can attend, bring evidence that the home was worth more than the sale price, such as an appraisal or recent sales nearby, and point out problems with the notice or sale.

  O.C.G.A. § 44-14-161(c)

• Several loans on the same home

  At the confirmation stage

  Georgia courts have treated debts that are tied together, such as two notes secured by the same deed and the same property, as one debt for this rule. That keeps a lender from foreclosing on the first loan without confirmation and then suing on the second.

  O.C.G.A. § 44-14-161(a)

• Short sale and deed in lieu

  When you sign the agreement

  Georgia has no special statute for deficiencies after a short sale or deed in lieu, and the confirmation rule applies to foreclosure sales. Georgia Legal Aid warns that after a short sale or deed in lieu you could still be sued for the remaining loan amount, so get any waiver of the balance in writing.

• If you get a confirmation notice or deficiency lawsuit

  Before the hearing date

  Do not ignore it. Contact Georgia Legal Services Program or Atlanta Legal Aid Society, listed on our Georgia foreclosure help page, right away, because the hearing on market value is your main chance to cut or stop a deficiency.

The short answer in Georgia

Common questions in Georgia