Foreclosure Process

Georgia is a “non-judicial” foreclosure state. Basically that means that the mortgage lenders do not have to seek the courts permission to foreclosure on your home once you become delinquent.

You become delinquent on your mortgage at the point that your “grace period” has ended. When you purchased your home, you signed the closing documents outlining the day that your mortgage being unpaid becomes delinquent. At that time, mortgage company’s can call the loan due in full.

In most cases and in our experience, we have seen that most mortgage companies will not start the foreclosure process until you are several months behind. The reasoning behind waiting for several months is that they are usually attempting to work out other arrangements with the homeowner instead of foreclosing.

Once the mortgage lender has decided to foreclose on your property, they will refer the property to a local foreclosure attorney. At that point, the foreclosure attorney typically will mail you notice that they have been retained by the mortgage lender to foreclose on the property. They will at that time “publish” the property for foreclosure with the legal organ of record for the county the property is located. Publish simply means they run an ad in the local newspaper legal ads of the foreclosure sale date. This by Georgia Law is to be published for four (4) consecutive weeks prior to the foreclosure sale date.

On the first Tuesday of the month, the foreclosure attorney will go to the courthouse the property is located and “cry” the foreclosure sale and offer the property for sale. If there is someone there that is willing to pay the mortgage lender their pre-determined amount then the property is sold on the courthouse steps. If no one purchases the property, then the property becomes “Real Estate Owned” (REO) by the mortgage lender.

Upon the property being returned to the mortgage lender, they will start the dispossessory process to evict the homeowner. This process is filed in the court system and served by a Sheriff’s Deputy. Upon service there can be a court hearing, however, most homeowners typically move out prior to this hearing. If there is no response from the homeowner than a “Writ of Possession” is issued by the judge and the Sheriff’s Deputy will come to the property to effect the eviction.

Once the homeowner has been removed from the property, the mortgage lender will assign a local real estate agent whom they have a relationship with to market the home for sale to rid themselves of the financial asset returned to them.

We hope that you have found this information useful. Please understand that this information or any other information found on this website is by any means acting as legal or tax advice. We highly recommend that you seek the advice of an attorney or accountant to ensure that your situation is correctly advised. If you are in need of references to local attorneys or tax professionals, please call us at 678-279-5977.