Legal Question in Real Estate Law in Georgia

I received a letter from a law firm representing a bank that held a mortgage on my primary home as well as a rental property that I owned in GA. The bank foreclosed on both properties nearly 3 years ago. The sale was confirmed and shortly thereafter I moved home to Ohio.

The letter indicated that if I do not contact the law firm to arrange settlement for the remaining debt owed (a total of $425,000)on the properties within 30 days, the bank will seek a deficiency judgement against me.

I have reached out to the law firm to discuss a settlement. However, I am not optimistic about a settlement given I recently encountered a huge reduction income due to job loss/change and a divorce.

In the meantime, I am seeking clarification as to whether the bank can seek a deficiency judgement if I now live in Ohio and have lived for a year?

Per Ohio's law, a bank must seek a deficiency judgement within 2 years of the foreclosure. It's been 3 years. However, the foreclosures occurred in Georgia.

Does the 2 year limit apply if I am an Ohio residents even if the foreclosure took place in another state?

Will the bank have to file for a deficiency judgement in Ohio (my current state of residence) or can they file for a judgement in Georgia? (I'm not sure it matters, but I still own one investment property in Georgia with my ex-husband. Per the divorce decree, he has year to refinance it.)

Thanks in advance!


Asked on 11/08/13, 8:29 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

No - one can't run away from the statute of limitations by moving. Otherwise, people would do it. The SOL is generally established at the time and place of the original contract, and it does not change. In this case, it is an easy call. Georgia.

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Answered on 11/08/13, 9:07 am
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

You can't flee the state and evade the statute of limitations. Most foreclosures in Georgia are not confirmed, but where a lender does this, and they must do it in the first 30 days, that allows them to pursue you. Talk to a lawyer. You likely need to file bankruptcy.

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Answered on 11/08/13, 10:25 am


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