How foreclosure works in Georgia

The notices you will receive in Georgia, in order

1. Notice of the sale (the 30-day notice)

   Mailed by the lender, usually through a law firm, no later than 30 days before the sale date

   The law calls this the notice of the initiation of proceedings to exercise a power of sale. It comes by registered or certified mail or overnight delivery to the property address, unless you gave the lender a different address in writing. It must name the person or company with full authority to negotiate, amend and modify your mortgage, so call that contact and your servicer the day it arrives.

   O.C.G.A. § 44-14-162.2

2. Notice of sale in the county legal newspaper

   Published once a week for the four weeks right before the sale

   The paper you get in the mail is a copy of the notice of sale sent to the newspaper. If the ad lists the street address, city and ZIP Code, they must be in bold type. Read it for the sale date and for mistakes, and keep every page.

   O.C.G.A. §§ 44-14-162, 44-14-162.2(b), 9-13-141

3. Recorded security deed or assignment

   Filed by the lender with the clerk of superior court before the time of the sale

   The security deed, or the assignment that gives the foreclosing lender its rights, must be on file in the county where the home is located before the sale. You will not receive this in the mail, but you or a lawyer can look it up in the county deed records to see who claims the right to foreclose.

   O.C.G.A. § 44-14-162(b)

4. Deed under power

   Given to the winning bidder after the first Tuesday auction

   This is the deed that transfers your home to the buyer. It must state that the 30-day notice was given. Georgia Legal Aid says that once the sale has happened you no longer own the home.

   O.C.G.A. § 44-14-162.4

5. Report of sale and notice of a confirmation hearing

   Only if the lender wants a deficiency: reported to a superior court judge within 30 days after the sale, with at least 5 days' notice to you of the hearing

   If the home sold for less than you owed and the lender wants to collect the difference, it must ask a judge to confirm the sale. Go to the hearing or have a lawyer go. The judge must be satisfied the home sold for its true market value and that the notice, advertising and sale were proper.

   O.C.G.A. § 44-14-161

6. Demand for possession and dispossessory summons

   From the new owner after the sale; the summons gives you 7 days to answer

   The new owner must demand possession and then file a sworn dispossessory affidavit in court. The court issues a summons that is served on you in person, on an adult living in the home, or by posting on the door with a copy mailed. If you do not answer within seven days, the court issues a writ of possession right away.

   O.C.G.A. §§ 44-7-50, 44-7-51, 44-7-53

The legal steps in Georgia

1. You fall behind on payments

   Under federal rules, the servicer generally cannot start a foreclosure until you are more than 120 days behind. Use this time to call your servicer, send in a complete loss mitigation application, and talk to a free housing counselor or legal aid office.

   12 C.F.R. § 1024.41(f)

2. Notice of the foreclosure sale is mailed

   The lender must send you a written notice no later than 30 days before the planned sale date. It goes by registered or certified mail or overnight delivery to the property address, or to another address you gave the lender in writing. The notice must give the name, address and phone number of the person or company with full authority to negotiate, amend and modify your mortgage. Georgia law does not require a court filing or a hearing at this point.

   O.C.G.A. § 44-14-162.2

3. The sale is advertised for four weeks

   The sale must be advertised in the county's legal newspaper once a week for the four weeks right before the sale. The notice you get in the mail is a copy of this advertisement. Check that the address and sale date are correct, and keep working on options with your servicer during this time.

   O.C.G.A. §§ 44-14-162, 9-13-141

4. Public auction at the courthouse

   Sales are held at the county courthouse on the first Tuesday of the month, between 10:00 a.m. and 4:00 p.m. If that Tuesday is New Year's Day or July 4, the sale moves to the next day. The highest bidder, often the lender itself, gets a deed. Georgia Legal Aid says that after the sale you no longer own the home.

   O.C.G.A. §§ 44-14-162, 9-13-161

5. Money after the sale: shortfall or surplus

   If the home sold for less than you owed, the lender can only go after you for the difference if it reports the sale to a superior court judge within 30 days and the judge confirms the sale. If the home sold for more than the debt and other liens, the extra money belongs to you, so ask the foreclosing law firm in writing for an accounting.

   O.C.G.A. § 44-14-161

6. Eviction through a dispossessory case

   The new owner cannot simply lock you out. The owner must first demand possession and then file a dispossessory (eviction) case in court. The summons gives you seven days from the day you are served to answer. Georgia Legal Aid says that if the judge rules against you, you get seven days to move.

   O.C.G.A. §§ 44-7-50, 44-7-51

Common questions in Georgia