Georgia Foreclosure Process if It Doesn't Sell at the Courthouse
The Georgia foreclosure process is very short. The final stage of the foreclosure process is the sheriff's sale in which the home is auctioned off to public. In some cases, there is no winning bid. Even if the property is not sold, the foreclosure is final. You will no longer be the homeowner and cannot live in the home. For homes that do not sell, the process to sell the home continues.
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Foreclosure Process
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When a homeowner defaults on a mortgage in Georgia, the foreclosure process begins. Lenders are not required to sue homeowners to obtain an order to foreclose the home. A foreclosure takes approximately 60 to 90 days. Before proceeding with the foreclosure, the lender must notify the homeowner they intend to foreclose. The notice of foreclosure sale must be advertised in the newspaper within the same county as the home. Georgia law specifies that foreclosure auctions must occur on the first Tuesday of each month between 10 a.m. and 4 p.m. at the courthouse where the home is located.
Homeowner's Rights After Foreclosure
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In Georgia, all foreclosures occur nonjudicially. There is no right to redemption, which means that the homeowner does not have any right to redeem the home after a sale. Prior to a sheriff's sale, you can pay the delinquent balance to prevent foreclosure. If the home is sold for less than the remaining loan balance, you may be required to pay the difference if the judge grants a deficiency judgment. When ownership of the home reverts back to the bank, the home will generally sold to reflect the market value minus repair costs, which can be less than what you owe on the loan.
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Bank Ownership
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The opening bid is typically equal to the amount you owe on the loan plus fees. If there are no bids, the bank will regain ownership of the home. The real estate owned division of the bank markets the home in an effort to recoup some of the loss. Foreclosed homes that appear in your local multiple listing service are often referred as either "bank owned" or a "REO property." Unlike a foreclosure auction, these homes can be viewed by potential buyers. In some cases, the bank is willing to negotiate on the price. Most REO homes are sold on an as-is basis, which means the buyer is responsible for all repairs and renovations.
Eviction Process
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If a homeowner has not vacated the home prior to the foreclosure auction, the bank has the right to file an eviction notice through the court to remove anyone occupying the home. Former homeowners become the tenants, subject to being evicted immediately. If you do not leave the home by the date listed on the notice, the sheriff can remove all occupants and their possessions. Tenants who rent a foreclosed home have rights under the Protecting Tenants at Foreclosure Act of 2009. A tenant with a lease is allowed to finish the duration of the lease even after ownership transfers hands, provided he entered the lease agreement before the foreclosure process begun. If the tenant does not have a lease or the lease was signed after the foreclosure procedure started, tenants are allowed 90 days to relocate.
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References
- Atlanta Foreclosures and Auction Properties: What are Pre-Foreclosures or Pending Foreclosures
- U.S. Bank Foreclosures: Frequently Asked Questions
- Foreclosure.com: Foreclosure auction: What Happens at a Sheriff Sale?
- The Money Puzzle: What Happens After Foreclosure? Four Possible Outcomes
- Eviction Rights Inc: Georgia Foreclosure Process
- Martin and Brunavs: Georgia Eviction Overview
