Georgia Foreclosure Case Study

Georgia is among the few states where the foreclosure process is concluded within a shortest time. This is because the borrower gives the title of the property to the lender through a deed or a trust. The lender owns the property until the borrower pays he debt. If the borrower fails to pay, the lender can declare the deed in order to secure the debt. The reason for the short foreclosure time is that a court order is not required and the backlog of cases that exist in the courts does not delay the process. Foreclosure laws in Georgia provide that lenders may foreclose trusts or deeds using judicial or non-judicial foreclosure processes. The judicial foreclosure process involves filing a lawsuit and obtaining a court order to foreclose. This …show more content…
The right to reinstate the mortgage provides the lender with an opportunity to pay the defaulted mortgage payments plus any other costs and fees in order to stop the foreclosure. The right to reinstate is not mandatory except in high value homes, but this right is often provided for in the security deed. It can also be stopped by agreeing to a payment plan with the mortgage company or lender. Selling the house before the foreclosure sale will also stop the foreclosure. The option to sell the house before the foreclosure is available where the borrower has equity. The proceeds from the sale in this case are used to pay off the mortgage loan. In the case the borrower does not have equity, the borrower can enter into a deed in lieu of a foreclosure is a good option. There are also specific regulations for high cost houses where annual percentage rate or fees exceed some amounts. In these cases, the lender is required to give the borrower a 30-day notice to cure the deficiency. Additionally the lender is required to send a notice of the intention to foreclose at least 14 days before the notice for the sale is