Burr Alert: Georgia Foreclosure Law in the Wake of Recent Decisions on Residential Mortgage Loans

December 27, 2012

Thousands of wrongful foreclosure lawsuits are filed each year in Georgia against banks, lenders, servicers, foreclosure firms, and other entities involved in the non-judicial foreclosure process for residential mortgage loans.

There has been recent upheaval in Georgia foreclosure law resulting from several key cases decided in 2012. We do not summarize the cases here, but rather seek to analyze their decisions’ impact on Georgia’s non-judicial foreclosure process while we await the Georgia Supreme Court’s response.

Reese v. Provident Funding Associates, LLP, 730 S.E.2d 551, 317 Ga. App. 353 (Ga. Ct. App. July 12, 2012)

In a sharply-divided decision, the majority held, as a matter of first impression, that Georgia’s foreclosure notice statute, O.C.G.A. § 44-14-162.2(a), requires the person or entity conducting a non-judicial foreclosure of a residential mortgage loan to provide the borrower/debtor with a written notice of the foreclosure sale that discloses not only "the name, address, and telephone number of the individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor" (the language that appears in the statute), but also the identity of the "secured creditor" (not required by the statutory language, but which the majority inferred based on legislative intent). The majority further found that the failure to identify the "secured creditor" in the foreclosure notice renders the notice, and any subsequent foreclosure sale, invalid as a matter of law. The dissenting judges in Reese found that the majority’s holding "amount[ed] to a judicial rewriting of [O.C.G.A. § 44-14-162.2(a)]" to mean that the notice must disclose not only the identity of the person identified in the text of the statute, but the identity of the secured creditor as well.

To read more about this topic, please see full article below

Download PDF



Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • "A great lawyer: she is practical. When you work on a deal she will protect the client and do it right, but won't waste time on unnecessary issues."

    -Chambers 2013

  • "Lee has been an excellent, trusted legal adviser to Honda Alabama since our arrival in 1999. He's helped us successfully expand our operations from our six initial hires to over 4,000 associates today. Each step along the way he's provided solid legal and insightful business advice. "

    -Raymond W. Perez.

  • "Burr & Forman is the best firm we have had work for us. The lawyers are knowledgeable, responsive, and have a depth of expertise in all areas. We have a high level of confidence in their representation of our company."

    -Best Lawyers 2012

  • "Rik Tozzi is celebrated for his varied expertise, including class actions."

    -Chambers 2007

  • “He is efficient and understands me. He knows the balance between legal and business aspects.”

    -Chambers 2012