Despite a recent uptick in the real estate market, both residential and commercial real estate owners continue to feel the after effects of the previous bubble. Many properties have failed to rebound to the values at which they were purchased, and thus have become impossible to refinance. This has led to further foreclosures, and, when necessary, creditors bringing lawsuits against owners seeking the deficiency between the amount owed and the foreclosure sale price. In order to seek this deficiency after conducting a foreclosure sale, creditors must engage in what is called foreclosure confirmation.
Georgia does not require a judicial foreclosure sale of real estate. This means, if a debtor were to default on their payments, the creditor would not have to obtain a court order to sell the property. The creditor can conduct what is termed a non-judicial foreclosure. As stated earlier, frequently creditors do not obtain the full amount of their loan at the foreclosure sale, thus triggering the need to follow the specific foreclosure confirmation process.
The creditor that is instituting the initial foreclosure proceedings must, within thirty days, report the sale to the presiding judge of the superior court of the county in which the property is located. Georgia law dictates that five days before the hearing, notice shall be given to the debtor. During this process, the court, by law, shall require the creditor to show the true market value of the property. Statutorily, the court shall not approve the sale unless the property brought its true market value. Additionally, the court will also analyze the legality of the notice, whether there was adequate advertisement, and the regularity of the sale. The statute governing this procedure can be found here.
Representing oneself during legal proceedings, particularly a foreclosure action, is a daunting task. An attorney experienced in the nuances of Georgia’s foreclosure proceedings can prove invaluable in warding off a potential deficiency judgment. A consultation with one of our attorneys will provide you with a thorough legal assessment as to the status and viability of the foreclosure confirmation brought against you.