Bill Text: GA HB1228 | 2009-2010 | Regular Session | Introduced
Bill Title: Foreclosure; allow right of redemption of mortgages; provisions
Spectrum: Slight Partisan Bill (Democrat 4-2)
Status: (Introduced - Dead) 2010-03-08 - House Second Readers [HB1228 Detail]
Download: Georgia-2009-HB1228-Introduced.html
10 LC
36 1558
House
Bill 1228
By:
Representatives Bryant of the
160th,
Stephens of the
161st,
Gordon of the
162nd,
Long of the
61st,
Day of the
163rd,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Part 1 of Article 7 of Chapter 14 of Title 44 of the Official Code of
Georgia Annotated, relating to foreclosure generally, so as to allow for the
right of redemption of foreclosed mortgages under certain circumstances; to
provide for certain information to be included in the advertisements of certain
foreclosure sales; to provide for related matters; to provide for applicability;
to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Part
1 of Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia
Annotated, relating to foreclosure generally, is amended by inserting a new Code
section to read as follows:
"44-14-160.1.
(a)
As used in this Code section, the term:
(1)
'Mortgage' means any mortgage, deed of trust, or any other instrument intended
to secure the payment of money.
(2)
'Sale' or 'sold' means any execution, judgment, or foreclosure sale, whether the
sale is made under any power of sale in any mortgage or deed or statutory power
of sale or by virtue of any judgment in any court of competent
jurisdiction.
(b)
The statutory rights of redemption given or conferred by this Code section are
mere personal privileges and not property or property rights. The privileges
must be exercised in the mode and manner prescribed in this Code section and may
not be waived in a deed, judgment, or mortgage or in any agreement before
foreclosure or execution sale.
(c)
If a mortgaged property is foreclosed on and sold and the property is purchased
at the foreclosure sale by the mortgage holder or its agent, the debtor, if he
or she has owned the property for five years or longer prior to the date of the
foreclosure sale, has 90 days to redeem the property and void the sale thereof.
In order to redeem the property, the debtor must tender, in cash, the total
amount due under the mortgage, plus interest at the rate specified in the
mortgage, plus a 12 percent penalty on the amount due and payable.
(d)
If a mortgaged property is foreclosed on and sold and the property is purchased
at the foreclosure sale by a third party, the debtor, if he or she has owned the
property for five years or longer prior to the date of the foreclosure sale, has
90 days to redeem the property and void the sale thereof. In order to redeem
the property, the debtor must tender, in cash, a 20 percent redemption fee on
all sums exceeding the total amount due under the mortgage amount that the third
party paid at the foreclosure sale.
(e)
Anyone desiring and entitled to redeem under the provisions of this Code section
may make written demand of the purchaser or his or her transferees for a
statement in writing of the debt and all lawful charges claimed by him or her,
and such purchaser or their transferees shall, within ten days after such
written demand, furnish such person making the demand with a written, itemized
statement of all lawful charges claimed by him or her. If the purchaser or his
or her transferee fails to furnish a written, itemized statement of all lawful
charges within ten days after demand, he or she shall forfeit all claims or
right to compensation.
(f)
The right of redemption contained in this Code section shall be extinguished if
the mortgage holder offers the debtor a six-month preforeclosure stay on
foreclosure on a loan delinquent for at least 61 days.
(g)
This Code section applies only to mortgages foreclosed on or after January 1,
2011."
SECTION
2.
Said
part is further amended by revising Code Section 44-14-162, relating to sales
made under power of sale and manner of advertisement and conduct necessary for
validity, as follows:
"44-14-162.
(a)
No sale of real estate under powers contained in mortgages, deeds, or other lien
contracts shall be valid unless the sale shall be advertised and conducted at
the time and place and in the usual manner of the sheriff's sales in the county
in which such real estate or a part thereof is located and unless notice of the
sale shall have been given as required by Code Section 44-14-162.2. If the
advertisement contains the street address, city, and ZIP Code of the property,
such information shall be clearly set out in
bold
boldface
type. In addition to any other matter required to be included in the
advertisement of the sale, if the property encumbered by the mortgage, security
deed, or lien contract has been transferred or conveyed by the original debtor
to a new owner and an assumption by the new owner of the debt secured by said
mortgage, security deed, or lien contract has been approved in writing by the
secured creditor, then the advertisement
should
shall
also include a recital of the fact of such transfer or conveyance and the name
of the new owner, as long as information regarding any such assumption is
readily discernable by the foreclosing creditor. Failure to include such a
recital in the advertisement, however, shall not invalidate an otherwise valid
foreclosure sale.
The
advertisement shall indicate if the property is owner occupied residential
property; provided, however, that failure to include such information in the
advertisement shall not invalidate an otherwise valid foreclosure
sale.
(b)
The security instrument or assignment thereof vesting the secured creditor with
title to the security instrument shall be filed prior to the time of sale in the
office of the clerk of the superior court of the county in which the real
property is located."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.