Notice of Acceleration and Foreclosure Sale
(Nonjudicial Foreclosure) (GA)

Summary

This notice of acceleration and foreclosure sale may be used by a lender in Georgia to provide a defaulting borrower with notice that the lender is accelerating the borrower's debt and that the residential or commercial real property securing the debt will be sold pursuant to a power of sale clause. This template contains practical guidance and drafting notes. In Georgia, a deed to secure debt (commonly referred to as a "security deed") is created when a borrower, while retaining equitable title, coupled with a right of redemption, conveys title to real property to a lender via a deed to secure debt. Title returns to the borrower upon payment of the debt. O.C.G.A. § 44-14-60. Security deeds are the most commonly used security instruments in Georgia and typically include a power of sale clause authorizing the lender to sell a defaulting borrower's secured real property to the highest bidder at a nonjudicial foreclosure sale. The lender must provide the borrower with notice of the initiation of proceedings to exercise a power of sale clause no later than 30 days before the date of the proposed foreclosure. The notice must be in writing and include the name, address, and telephone number of the individual or entity that has authority to negotiate, amend, and modify all terms of the loan with the borrower. O.C.G.A. § 44-14-162.2(a). The failure to provide this statutorily required notice of foreclosure supports a wrongful foreclosure claim under Georgia law. Mbigi v. Wells Fargo Home Mortg., 785 S.E.2d 8 (2016). In addition, if the lender wishes to enforce an attorney's fees provision in the loan documents, it must provide the borrower with written notice that the borrower can pay the entire debt amount within 10 days of the notice to avoid the addition of attorney's fees. O.C.G.A. § 13-1-11 (a)(3). This form of notice fulfills the requirements of both O.C.G.A. § 44-14-162.2(a) and O.C.G.A. § 13-1-11 (a)(3) and should be sent to the defaulting borrower by the lender's attorney. For a template that provides the borrower with notice of the foreclosure without accelerating the debt see Notice of Foreclosure Sale under Power of Sale (Nonjudicial Foreclosure) (GA). For guidance on foreclosure proceedings in Georgia see Commercial and Residential Foreclosure (GA) and Foreclosure Resource Kit (GA). For more on notice requirements when a lender exercises a power of sale clause in Georgia see LexisNexis Practice Guide: Georgia Real Estate Litigation § 9.02[3].