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Georgia Law

Georgia Foreclosure: How a Power of Sale Actually Works

Georgia foreclosures happen out of court, on the first Tuesday of the month, after four weeks of advertising and 30 days notice to the borrower.

6 min readUpdated Finance and Closing

This topic is 15 of the 52 Georgia questions. See where it sits in the outline.

Quick answer

Georgia foreclosures are non-judicial. The lender uses the power of sale written into the security deed, advertises the sale in the county legal organ once a week for four weeks, sends the borrower written notice at least 30 days before the sale date, and sells on the courthouse steps on the first Tuesday of the month. No lawsuit is filed.

The reason Georgia can do this quickly is the reason covered in the security deed guide: the lender already holds legal title. It is not asking a court for permission to take something. It is exercising a power the borrower granted when the loan was signed.

The four things that must happen

A power-of-sale foreclosure in Georgia is valid only if the lender follows the statute. O.C.G.A. § 44-14-162 says the sale must be advertised and conducted at the time, place and in the usual manner of sheriff's sales in the county where the land lies, and that notice must be given under § 44-14-162.2.

In practice that produces four requirements.

A power of sale in the instrument. Without the clause, there is nothing to exercise and the lender would have to foreclose judicially. Every standard Georgia security deed contains one.

Advertising. The notice of sale runs in the county's legal organ, which is the newspaper the county designates for legal notices, once a week for four weeks before the sale.

Notice to the debtor. Under O.C.G.A. § 44-14-162.2, the secured creditor must send written notice no later than 30 days before the proposed sale date. It goes by registered or certified mail or statutory overnight delivery to the property address or another address the debtor has given in writing. The notice has to name the individual or entity with full authority to negotiate, amend and modify the terms of the loan, which was added so borrowers had someone real to call.

The sale itself. Public auction, on the courthouse steps, between the legal hours of sale, on the first Tuesday of the month. If the first Tuesday falls on a holiday, the sale moves to the next business day.

Exam trap

The 30-day notice and the four-week advertising run in parallel, not one after the other. A question asking for the minimum time from the start of the process to the sale is testing whether you add them together. You should not.

After the sale

Two things follow that candidates routinely mix up.

There is no statutory right of redemption. Once a non-judicial sale is properly conducted, the former owner cannot pay the debt and take the property back. The equity of redemption exists only up to the moment of sale. Several states give a redemption period of six months or a year afterwards; Georgia does not, and a question offering "one year to redeem" is offering another state's rule.

A deficiency requires confirmation. If the property sells for less than the debt and the lender wants a judgment for the shortfall, it must apply to the superior court to confirm the sale within 30 days. The court looks at whether the property brought its true market value. Skip confirmation and the lender keeps the sale proceeds but loses the right to chase the borrower for the rest.

Worth knowing

Non-judicial does not mean no court at any point. It means no lawsuit is needed to conduct the sale. Confirmation is a separate proceeding the lender chooses to bring, for its own benefit.

Where the deed of trust confusion comes from

National material teaches three foreclosure routes: judicial, non-judicial under a deed of trust with a trustee, and strict foreclosure. Georgia is non-judicial, but without a trustee. The lender is the grantee under the security deed and it exercises the power of sale directly, usually through its attorney.

So on a Georgia question:

Element Deed of trust state Georgia
Instrument Deed of trust Security deed
Parties Three, including a trustee Two, borrower and lender
Who conducts the sale The trustee The lender or its attorney
Court involvement to sell None None
Redemption after sale Varies by state None

What a licensee needs to do with this

Two practical points the state supplement likes.

A property under foreclosure advertisement is public information, which is why investors read the legal organ. An agent who knows a listing is heading to sale has a material fact on their hands, and the duty to disclose adverse material facts applies whether the person on the other side is a client or a customer.

Short sales are not foreclosures. A short sale is a negotiated sale for less than the balance, with lender consent, and the property never reaches the courthouse steps. Questions sometimes describe a short sale and offer foreclosure timing as an answer.

If you want more Georgia-only material of this kind in one place, the cram sheet collects the state rules that differ from the national default, and the Georgia versus national comparison sets the two outlines side by side.

Check yourself

1. On what day are Georgia foreclosure sales conducted?

  • A. The first Monday of the month
  • B. The first Tuesday of the month
  • C. The last business day of the month
  • D. Any weekday chosen by the lender
Show the answer

Answer: B. Georgia foreclosure sales follow the usual manner of sheriff's sales, which are held on the first Tuesday of the month at the courthouse.

2. How far in advance must the secured creditor notify the debtor of a proposed power-of-sale foreclosure?

  • A. No later than 10 days before the sale
  • B. No later than 30 days before the sale
  • C. No later than 60 days before the sale
  • D. No notice to the debtor is required
Show the answer

Answer: B. O.C.G.A. § 44-14-162.2 requires written notice no later than 30 days before the proposed foreclosure date, sent by registered or certified mail or statutory overnight delivery.

3. A Macon home is sold at a properly conducted power-of-sale foreclosure. Six weeks later the former owner offers to pay the full debt. What is the result?

  • A. The former owner may redeem the property within one year
  • B. The former owner may redeem within six months of the sale
  • C. There is no statutory right to redeem after the sale
  • D. Redemption is allowed only with the buyer's consent
Show the answer

Answer: C. Georgia gives no statutory right of redemption after a non-judicial foreclosure sale. The equity of redemption ends when the sale takes place.

4. A lender sells a property at foreclosure for less than the outstanding debt and wants a deficiency judgment. What must it do?

  • A. Nothing further, the judgment is automatic
  • B. Apply to the superior court to confirm the sale within 30 days
  • C. Re-advertise the sale for four additional weeks
  • D. Obtain the borrower's written consent to the shortfall
Show the answer

Answer: B. A deficiency judgment requires confirmation of the sale by the superior court, applied for within 30 days, with the court considering whether the property brought its true market value.

FAQ

How long does a Georgia foreclosure take?

From the lender starting the process to the sale, the statutory minimum is roughly a month, because the advertising runs four weeks and the borrower notice runs 30 days, and those overlap. In practice lenders take longer, but Georgia is among the faster states precisely because no lawsuit is involved.

What is the county legal organ?

The newspaper a county has designated to publish its legal notices. Foreclosure advertisements, sheriff's sales and other public notices run there, which is why it is the first place investors look.

Can a borrower stop the sale?

Paying the debt in full before the sale ends the matter, and that is the equity of redemption. Bankruptcy imposes an automatic stay. Loan modification is a negotiation, which is why the statute now requires the notice to name someone with authority to modify.

Does Georgia allow judicial foreclosure at all?

Yes, a lender can foreclose through the courts, and would have to if the instrument lacked a power of sale. It is slower and almost never used for residential loans, so exam questions describe the non-judicial route unless they say otherwise.

Sources

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Exam facts on this page are checked against the PSI Candidate Information Bulletin and GREC rules, not against other prep sites. Where a claim has no primary source, we say so instead of repeating it. Last reviewed August 2026.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2026. Editorial standards.