When a property is foreclosed on in Georgia, it will go through a foreclosure sale process. This process involves the sale of the property at a public auction to recover the outstanding debt owed to the lender.

Georgia, being a non-judicial foreclosure state, is allowed to initiate and complete foreclosure by a lender without the intervention of a court unless the loan documents specify it. In a non-judicial foreclosure, the lender can sell the property without going through the court system. In a judicial foreclosure, the sale is supervised by the court.

The following is what you need to know about a typical foreclosure process:

1) With you loan documents will be a security deed to secure the loan debt. These are executed by the borrower and contain a power of sale clause, allowing the lender to accelerate the entire balance of the debt.

Find your loan documents and read them so you will know what your lender will do if you don’t make payments.

2) The loan is secured by the real property, your home. If you fall behind on your mortgage typically by 60 to 90 days the your lender is likely to issue a notice of default to the borrower with a deadline by which they must cure the default by paying all past due amounts, including principal, interest, and any applicable fees or charges.

3) If the borrower fails to cure the default within the lender’s specified timeframe, the lender will then send a notice of sale to the borrower and other parties with an interest in the property, such as lien holders.The written notice should be registered with the local county court and sent to the borrower with the lenders having proof of successful delivery 30 days before the foreclosure sale date.

4) Legal notice of foreclosure is then published and advertised for four consecutive weeks in an official newspaper. This contains a legal description of the property, the borrowers name, the original deed to secure the debt and the name of the current party that holds it. The notice also includes information about the date, time, and location of the auction.

5) The foreclosure sale day is the first Tuesday of every month at the courthouse steps of the same county where the real estate is located. On the day of the auction, interested buyers gather at the designated location and bid on the property. Either the lender or the highest cash-in-hand third party bidder will take title of the property and becomes the new owner.