Foreclosure Session #1 - Thursday November 13, 2025
FORECLOSURE PROCESS 1. Big picture: Georgia is a power-of-sale (nonjudicial) state When you get a mortgage in Georgia, you actually sign a promissory note plus a security deed that usually contains a “power of sale” clause. That clause lets the lender sell the property at a foreclosure auction if you default, without first going to court, so long as they follow Georgia’s notice and advertising laws. Judicial foreclosure (going through a lawsuit) is possible, but it’s rare in Georgia for residential loans; lenders overwhelmingly use the nonjudicial route. 2. Step-by-step: Nonjudicial foreclosure in Georgia Step 1 – Default under the loan a) A default usually begins with missed payments or violation of some other loan term (failure to pay taxes, keep insurance, etc.). b) F ederal mortgage rules (on most owner-occupied residential loans) generally prevent a lender from starting foreclosure until you’re more than 120 days delinquent, but after that, Georgia’s ...