Bill Text: GA HB1047 | 2011-2012 | Regular Session | Introduced

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Bill Title: Property; showing of fair market value to obtain judgment on deed to secure debt or mortgage prior to foreclosure; provide

Sponsorship: Partisan Bill (Republican 3)

Status: (Introduced - Dead) 2012-02-21 - House Second Readers [HB1047 Detail]

Download: Georgia-2011-HB1047-Introduced.html

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12 LC 39 0123

House Bill 1047

By: Representatives Ramsey of the 72nd, Jacobs of the 80th, and Welch of the 110th

A BILL TO BE ENTITLED
AN ACT

To amend Article 7 of Chapter 14 of Title 44, relating to foreclosure, so as to provide for a showing of a property's fair market value in order to obtain a judgment on a deed to secure debt or mortgage prior to a foreclosure and sale under power; to provide for fair market value to be used as the opening bid in sales under power when a money judgment has been obtained prior to foreclosure; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 7 of Chapter 14 of Title 44, relating to foreclosure, is amended by adding a new Code section to read as follows:

"44-14-161.1.

When the holder of a deed to secure debt or a mortgage on real property seeks to obtain a money judgment on the same prior to foreclosure and sale under power, the court shall require evidence to show the fair market value of the property to be used by the court in consideration of the issuance of such judgment. The court shall render an opinion as to the fair market value of the property, which may, in the court's discretion, be based solely upon a sworn affidavit from the holder as to the fair market value of the property if no evidence is submitted by the debtor demonstrating a different fair market value. The fair market value of the property as established by the court in accordance with this Code section shall be the opening bid in a sale under power."

SECTION 2.

Said article is further amended by revising Code Section 44-14-180, relating to the manner of foreclosure, as follows:

"44-14-180.

Mortgages on real estate may be foreclosed in the following manner:

(1) Any person who applies and who is entitled to foreclose the mortgage shall, by himself or herself or his or her attorney, petition the superior court of the county wherein the mortgaged property is located, which and the petition shall contain a statement of the case, the amount of the petitioner's demand, and a description of the property mortgaged;

(2) Upon the filing of the petition prior to obtaining a money judgment on a deed to secure debt or a mortgage on real property, the court shall grant a rule directing that the principal, the interest, and the costs be paid into court. Upon the filing of the petition after obtaining a money judgment on a deed to secure debt or a mortgage on real property, the court shall grant a rule directing that the fair market value of the mortgaged property, as determined under Code Section 44-14-161.1, be paid into court. The rule shall be published twice a month for two months or served on the mortgagor or his or her special agent or attorney at least 30 days prior to the time at which the money is directed to be paid into the court; and

(3) Notwithstanding paragraphs (1) and (2) of this Code section, where the land covered by the mortgage shall consist of a single tract of land divided by a county line or county lines, the mortgage may be foreclosed on the entire tract in either of the counties in which part of it is located; but, if the mortgagor shall reside upon the land, the mortgage shall be foreclosed in the county of his or her residence."

SECTION 3.

Said article is further amended in Code Section 44-14-187, relating to judgment and sale of mortgaged property, as follows:

"44-14-187.

When the mortgagor, after being directed so to do, fails to pay the principal, interest, and costs as required by Code Section 44-14-230 or the fair market value of the property as provided for by Code Section 44-14-161.1 and fails to set up and sustain his or her defense against the foreclosure of the mortgage, the court shall give judgment for the amount which may be due on the mortgage and shall order the mortgaged property to be sold in the manner and under the same regulations which govern sheriffs' sales under execution. If a money judgment has been obtained prior to foreclosure and sale under power, the opening bid shall be the fair market value of the property as determined under Code Section 44-14-161.1."

SECTION 4.

All laws and parts of laws in conflict with this Act are repealed.