Bill Text: GA HB419 | 2011-2012 | Regular Session | Comm Sub

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Bill Title: Foreclosure; time of delivery of notice of proceedings; change

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Engrossed - Dead) 2012-03-22 - Senate Read Second Time [HB419 Detail]

Download: Georgia-2011-HB419-Comm_Sub.html

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12 LC 29 5152S

House Bill 419 (COMMITTEE SUBSTITUTE)

By: Representatives Mitchell of the 88th, Jacobs of the 80th, and Willard of the 49th

A BILL TO BE ENTITLED
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 in general, so as to provide, under certain circumstances, for an opportunity, prior to foreclosure, for a debtor to cure a foreclosure and bring the debt current by making all past due payments along with any late fees and charges; to provide for a method of payment; to provide for a limitation; to provide for related matters; to provide for an effective date and 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 in general, is amended by adding a new Code section to read as follows:

"44-14-162.5.

(a) As used in this Code section, the term 'security instrument' means a mortgage, security deed, or lien contract.

(b) This Code section shall apply to the exercise of a power of sale of property:

(1) All or part of which is presently used as a dwelling place by the debtor; and

(2) In which the debtor occupying such property is an original borrower who entered into the security instrument.

(c) If the debtor and the property meet the conditions of subsection (b) of this Code section, then such debtor shall have the right to have enforcement of the power of sale discontinued at any time up to five calendar days before sale of the property, provided that such debtor:

(1) Pays in good funds to the creditor or to the creditor's attorney all sums which then would be due under the security instrument if no acceleration had occurred no later than five calendar days before sale of the property;

(2) Cures any default of any other terms of the security instrument; and

(3) Pays all fees and expenses specified as collectable under the security instrument prior to acceleration.

(d) The creditor may require that the debtor pay such reinstatement sums and expenses in one or more of the following forms, as selected by the creditor:

(1) Cash;

(2) Money order;

(3) Electronic funds transfer; or

(4) Certified check, bank check, treasurer's check, or cashier's check, provided that:

(A) Any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; and

(B) Any such check is made payable to the creditor or to the creditor's attorney.

(e) Upon reinstatement of the debtor under the provisions of this Code section, the creditor's interest in the property and rights under the security instrument, and the debtor's obligation to pay the sums secured by the security instrument, shall remain fully effective as if no acceleration had occurred.

(f) The requirements of this Code section shall not be waivable by contract or otherwise.

(g) This Code section shall not apply to any obligation after the maturity date of such obligation."

SECTION 2.

This Act shall become effective on July 1, 2012, and shall apply to security instruments executed on or after July 1, 2012.

SECTION 3.

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