Legal Question in Real Estate Law in Georgia

It depends in part on when the foreclosure sale was held. Gergia permits lenders to sue for deficienty within 30 days after the sale. See OCGA Section 44-14-161 set forth below. has it been longer than that? If so, you should not have to worry.

Assuming that it has been less than 30 days after the sale, no lawyer can guarantee that the lender will not sue for deficiency. Know that it is a possibility and is allowed by law. The question of whether the lender will in fact do it is another matter. I do not know the policies and practices of the particular lender in your case; maybe another attorney does. Given th economic climate in which we find ourselves, I think most lenders would be foolish to get a deficiency and waste added resources on this. However, if they do file for deficiency, then you want to consider filing bankruptcy. Georgia allows wage garnishment and if the deficiency is going to be over $10,000, you do not want to be paying for a house that you no longer own.

� 44-14-161. Sales made on foreclosure under power of sale -- When deficiency judgment allowed; confirmation and approval; notice and hearing; resale

(a) When any real estate is sold on foreclosure, without legal process, and under powers contained in security deeds, mortgages, or other lien contracts and at the sale the real estate does not bring the amount of the debt secured by the deed, mortgage, or contract, no action may be taken to obtain a deficiency judgment unless the person instituting the foreclosure proceedings shall, within 30 days after the sale, report the sale to the judge of the superior court of the county in which the land is located for confirmation and approval and shall obtain an order of confirmation and approval thereon.

(b) The court shall require evidence to show the true market value of the property sold under the powers and shall not confirm the sale unless it is satisfied that the property so sold brought its true market value on such foreclosure sale.

(c) The court shall direct that a notice of the hearing shall be given to the debtor at least five days prior thereto; and at the hearing the court shall also pass upon the legality of the notice, advertisement, and regularity of the sale. The court may order a resale of the property for good cause shown.