Georgia, like many other states, has both judicial and non-judicial forms of foreclosure proceedings. When dealing with foreclosure listings it's imperative to learn which type of foreclosure proceeding the listing in question is undergoing.
Along with the type of foreclosure, there are several other terms that potential buyers of foreclosed commercial or residential property should be aware of before completing a transaction. Here are some common terms along with resources that provide additional information.
Notice of sale, Georgia notice of auction
In the state of Georgia a notice of sale or auction refers to an announcement that the lender must make in the local paper no less than four times before the auction. The borrower in default must also be made aware at least 15 days before the auction. Georgia foreclosure listings will detail when the sale will occur.
Power of sale clause
A "power of sale clause" refers to a clause in a borrower's mortgage that states that if they default on the payments, the lender has the right to auction the property without obtaining a court ruling. When dealing with Georgia foreclosure listings, it's important to know if a particular property in question has a power of sale clause in the defaulted borrower's mortgage papers.
Deficiency judgment, Georgia deficiency judgment
A deficiency judgment in the state of Georgia refers to repayment sought by the lender on the defaulted borrower after an auction or re-sale has occurred. The deficiency judgment is usually for the difference between the auction price and what the defaulted borrower owed on the property, plus court costs and associated fees. When dealing with Georgia foreclosure listings, knowing whether the lender will seek a deficiency judgment may alter how a potential buyer negotiates.
Georgia is one of several title theory states in America. Title theory relates to a principle that allows the lender to sell the property of a defaulted borrower if they have defaulted. Georgia foreclosure listings will mention if a particular foreclosure is being sold by the lender utilizing the title theory principal.
Wrongful foreclosure, no notice foreclosure
A wrongful foreclosure or a no notice foreclosure is an action brought by a defaulted borrower who contends that the lender did not properly notify them of the default or wrongfully carried out the subsequent procedures. When dealing with Georgia foreclosure listings, it is mindful to realize some defaulter borrowers may file a suit, thereby blocking an auction.
Pre-acceleration letter, acceleration letter, demand letter
The pre-acceleration, acceleration or demand letters as they are sometimes referred to, are a series of letters sent by the lender to a buyer in default demanding payment of the entire mortgage in a set period of time. Georgia foreclosure listings will detail where a property is in relation to the acceleration letters received. This is part of the pre-foreclosure process.