Georgia Foreclosure Terms and Definitions
Learn the Meaning of Common Terms Used in Georgia Real Estate Law
Jul 11, 2009
The foreclosure process in Georgia can be quite confusing to a defaulted borrower or prospective property investor. There are so many words or terms that are specific to the Georgia foreclosure process. Here are some definitions of commonly found terms that are associated with foreclosures in Georgia.
Deed to Secure Debt and Promissory Note in Default
This term refers to a filing that a lender makes in court against a person who has defaulted on their loan. The Deed to Secure Debt and Promissory Note in Default starts the legal proceeding for foreclosure within the state of Georgia.
Confirmation Hearing
After the sale of a judicial foreclosure within the state of Georgia, a confirmation hearing must be held. The hearing consists of a review of the terms of sale by a court within the state of Georgia that has jurisdiction. The purpose of the hearing is to affirm the sale. If the terms of sale were less than the owed amount, then the judge may order a new foreclosure sale.
Notice of Foreclosure
Under Georgia foreclosure law, a lender must send a letter to the borrower in default informing them of the potential auctioning of their property. This notice must be sent no less than 15 days before an auction is to be held. The postmark on the letter sets the timeline.
Chapter 13
Chapter 13 is a form of filing bankruptcy. Once the proper paperwork has been filed in a Georgia court of law, the borrower in default may submit a payment plan detailing how they will repay their debts. These payments plans usually have a maximum timeline of five years within the state of Georgia. If approved the court with jurisdiction, the buyer may then redeem their property as long as they continue to make payments as described in the filing.
Right to Redemption
According to the Georgia state legislature, a defaulted borrower has the right to redeem or reclaim their property within a timeframe of 60 days after the foreclosure if they repay all debts owed to the lender, and any associated costs to the winning bidder of the foreclosure sale. The defaulted borrower must make every party “whole” in order to redeem their residential or business property.
Homestead Exemption
In the state of Georgia, foreclosure law stipulates that there is a portion of equity that creditors may not touch when foreclosing on the property. The homestead exemption is usually granted during bankruptcy proceedings and may not apply to all mortgage contracts executed within the state. It’s best to seek legal council on how to obtain a homestead exemption for your situation.
 |
