Foreclosure Laws in Georgia

Georgia is both a judicial and non-judicial state; meaning the foreclosure process can occur both in court and out of court. A non judicial foreclosure can be completed in less than 2 months.

A judicial foreclosure can occur in the state of Georgia, when the trustee deed or mortgage lack the clause that permits the non-judicial proceedings. The foreclosure process begins when the lender files a petition. This petition will describe the default amount, property, and situation. A written notice is sent to the borrower, letting him/her know that they need to pay the default within 30 days. If this is not resolved, a sale date is scheduled.

Most mortgages and trust deeds these days have a clause permitting out of court proceedings. This makes the non-judicial way more prevalent in this state.

Georgia has no law that requires the lender to warn the borrower before it begins the process of foreclosure. But, the deed of trust or mortgage might state they should.

Georgia law does not give a reinstatement “right” to the borrower. But, if the deed of trust or mortgage states the borrower has the right to stop their foreclosure by paying of the default amount and any extra costs, a borrower can always stop the foreclosure process by paying the loan balance.

Four weeks before the sale, a notice about the sale is published, once a week. Around fifteen days before the sale, a notice is sent is sent to the borrower. This notice includes; lender and borrowers names; mortgage info, the location of the sale, a description of the property, a date and time.

The auction or foreclosure sale is at the county courthouse. This occurs the 1st Tuesday of every month. It is usually held between 10 and 4 pm. The winning bidder must have the full amount to give to the person conducting the sale. If the sale is canceled, the process starts all over again.

There isn’t a right of redemption in Georgia, after a foreclosure sale.

Using Foreclosure Law to Your Advantage

Foreclosure law varies from state to state with regards to the exact process that must be followed in order for a bank or lender to foreclose on your home. Knowing the foreclosure law in your state can help you negotiate with your lender and perhaps avoid foreclosure altogether.

One of the largest differences in foreclosure law is whether a state uses mortgages or deeds of trust for real estate. “Deed of trust” is a term that’s not heard as often as mortgage, but in essence, they have the same function – they protect the lender from default on a loan that is secured by real estate. The major difference is in the process the lender must use to obtain the right to recover your property and sell it.

When you sign a mortgage agreement with a lending institution, you retain the deed to the property, and have full legal title to it – but you allow the lender to place a ‘lien’ on it. If you do not make the payments on the loan as agreed upon, the lender can foreclose on the property.

In some states, a deed of trust takes the place of a mortgage. With a deed of trust, you give the deed to the land or property to the lender, but the lender can only use or sell the property if you default on the loan.

In states that use mortgages, foreclosure law makes foreclosure a judicial procedure. A lender must prove to the court that the borrower has defaulted on the loan, and that they, the lender, have made appropriate attempts to resolve the default with the homeowner. There is a definite sequence of events that must be followed as prescribed in the foreclosure law, and knowing that sequence in your state can help you understand your options in terms of resolving the issue before it goes before a judge.

In states that use a deed of trust rather than a mortgage, the lender must go through certain steps of notification as required by foreclosure law in that state, but does not need judicial permission to proceed with a sale or foreclosure on the property to which they hold a deed in trust.

States whose foreclosure law requires judicial action include: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Pennsylvania, South Carolina, South Dakota, Vermont, Washington and Wisconsin.

Being Aware and Understanding Foreclosure Laws

Generally, laws differ from one state to another. However, some states have corresponding laws that could help you a lot in dealing with foreclosure.

Remember that these tips are based on foreclosure law that appears similarly on both the federal and state fields. Exceptions might exist, again depending on the state’s own decisions. You must be aware of the two existing foreclosure processes that you or the court could choose. The first is called the Judicial Process. In this procedure, the court would decide whether the property-provider would need to file a suit against the property owner. In this case, the court may also determine if the property provider truly means the file. They would also double check whether or not payment discrepancies really exist. This might be a lengthy process for you to undergo. That is why many choose to have the rather easier Non-Judicial Process.

The Non-Judicial Process would require another person to buy the property in question. This way, the property-owner can still pay the outstanding loans using the third party’s prior payments. He may even loan for another property just to start the whole thing again. However, in case you are approved for another loan, be sure that you can now fully pay the monthly installments you have requested for.

Whatever you may choose, make sure that your senses are keen in detecting any cases of irregularities. Ignorance is never an excuse, so study more about the foreclosure law governing the state you are in to ensure that your rights are being protected.

Foreclosure Law 101 For Homeowners

Foreclosure laws vary from state to state but here is some general information about foreclosure laws. When a person falls behind on their mortgage payments and they have defaulted on their debt, the bank may foreclose on their property.

The bank does this by filing a lawsuit in order to get a court order to foreclose. Once the court declares foreclosure on the property, they auction it off, with the highest bidder purchasing the property. There is a waiting period between the date of the lawsuit and the foreclosure sale, which is often between three and twelve months depending on the foreclosure law in the state.

They publish a foreclosure ad according to foreclosure law at least thirty days before the auction, once a week for up to three weeks. Before they place the first ad, the homeowner must receive a sheriff’s notice of foreclosure sale. Immediately after the sale, the sheriff gives the title/deed to the new owner.

If you have fallen on hard times and missed some mortgage payments, there is still a chance to save your home especially if you have not received a foreclosure notice yet. Return all phone calls and answer any letters regarding your home. Go in and talk to the lender or bank. Often they would much rather work with you instead of foreclosing on your property.

Hiring an attorney familiar with foreclosure law is often a wise move as they can not only act as intermediary at this very stressful time and protect your rights but also work with you on saving your home from foreclosure.

You may be able to pay some of the missed payments and/or set up new monthly payments. At times, the bank will even allow you to refinance to reduce your monthly payments. As mentioned earlier, banks really do not want to foreclose on a home if they do not have to. Ask questions, seek help on foreclosure law and be aggressive about keeping your home.

Vermont Foreclosure Laws

Vermont is a strict foreclosure state. That means that foreclosures in this state proceed on the premise that the lender owns the home, not the borrower.

So, if the borrower transgresses on any condition in the mortgage before the loan is paid in total, they will lose all right to be in the home. The lender will take hold of the property and set up the auction.

The first step in this state is; the borrower /homeowner must be served a summons to appear in court and there be apprised of his or her rights in the case. At this time, the lender can request a summary judgment. This, if granted, will by pass a trial completely.

Virginia allows both in court and out of court foreclosures. Even when there is a power of sale clause in the mortgage or deed of trust, the lender can proceed either with judicial, in court foreclosure or a non judicial out of court foreclosure.

If the lender chooses to go for the in court foreclosure, they must first file a complaint in court and receive a decree of sale. The occasions when this type of foreclosure is required, is when the property includes a dwelling of two units or a building that has less than two units . The owner must be utilizing this as their principle residence. Another rule that applies to this form of foreclosure is that the property cannot be sold until after seven months following the granting of the decree of sale.

Vermont allows for out of court foreclosure when, again it is not a 2 unit or less dwelling with owner residing in one of those units as their primary home or farmland. If these conditions are met, then the lender can sell the place without either a formal foreclosure proceedings or bothering to get decree of sale.

This is how the sale would proceed, at a minimum of thirty days before the advertising of the notice of sale , a letter called the notice of intent to foreclose, must be sent to the home owner by registered mail. This must be sent to their last known address. This letter must contain a description of the condition in the mortgage that the borrower has not honored. It must also explain the lender’s right to accelerate the mortgage (call it due in full) This letter must state that the homeowner will receive a notice of sale, no sooner than sixty days before the sale date.

At anytime before the sale , the borrower can “buy back” the home and avoid foreclosure by paying the total amount of the mortgage plus attorney’s fees and other lender expenses.

If and when the sale date does arrive, it will be held on the property itself. Sometimes the court will designate some other location. The property will then be sold to the highest bidder. Anyone, including the lender, may bid. If there is not enough money from the winning bid, to pay off the amount owed, then the lender has the right to continue to pursue the borrower for the additional money. They will do this through a law suit.

In Virginia, if the mortgage was initiated after 1968, the home owner has six months to regain ownership of the property. If the home has a mortgage that was entered into before 1968, then the home owner can “buy it back” for a full 12 months after the sale.

The cost of the option to the home owner is the highest or winning bid amount at the auction plus interest.

Vermont is a strict foreclosure state. That means that foreclosures in this state proceed on the premise that the lender owns the home, not the borrower.

So, if the borrower transgresses on any condition in the mortgage before the loan is paid in total, they will lose all right to be in the home. The lender will take hold of the property and set up the auction.

The first step in this state is; the borrower /homeowner must be served a summons to appear in court and there be apprised of his or her rights in the case. At this time, the lender can request a summary judgment. This, if granted, will by pass a trial completely.

Virginia allows both in court and out of court foreclosures. Even when there is a power of sale clause in the mortgage or deed of trust, the lender can proceed either with judicial, in court foreclosure or a non judicial out of court foreclosure.

If the lender chooses to go for the in court foreclosure, they must first file a complaint in court and receive a decree of sale. The occasions when this type of foreclosure is required, is when the property includes a dwelling of two units or a building that has less than two units . The owner must be utilizing this as their principle residence. Another rule that applies to this form of foreclosure is that the property cannot be sold until after seven months following the granting of the decree of sale.

Vermont allows for out of court foreclosure when, again it is not a 2 unit or less dwelling with owner residing in one of those units as their primary home or farmland. If these conditions are met, then the lender can sell the place without either a formal foreclosure proceedings or bothering to get decree of sale.

This is how the sale would proceed, at a minimum of thirty days before the advertising of the notice of sale , a letter called the notice of intent to foreclose, must be sent to the home owner by registered mail. This must be sent to their last known address. This letter must contain a description of the condition in the mortgage that the borrower has not honored. It must also explain the lender’s right to accelerate the mortgage (call it due in full) This letter must state that the homeowner will receive a notice of sale, no sooner than sixty days before the sale date.

At anytime before the sale , the borrower can “buy back” the home and avoid foreclosure by paying the total amount of the mortgage plus attorney’s fees and other lender expenses.

If and when the sale date does arrive, it will be held on the property itself. Sometimes the court will designate some other location. The property will then be sold to the highest bidder. Anyone, including the lender, may bid. If there is not enough money from the winning bid, to pay off the amount owed, then the lender has the right to continue to pursue the borrower for the additional money. They will do this through a law suit.

In Virginia, if the mortgage was initiated after 1968, the home owner has six months to regain ownership of the property. If the home has a mortgage that was entered into before 1968, then the home owner can “buy it back” for a full 12 months after the sale.

The cost of the option to the home owner is the highest or winning bid amount at the auction plus interest.