05 LC 34
0344
House
Bill 741
By:
Representatives Mangham of the
94th,
Stephenson of the
92nd,
Fludd of the
66th,
Sinkfield of the
60th,
and Benfield of the
85th
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 related matters; to provide for applicability; to provide an
effective date; 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 44-14-160.1 immediately following Code Section 44-14-160, relating to
recording of foreclosure and deed under power, 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, 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, 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 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 will 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,
2006."
SECTION
2.
This
Act shall become effective on July 1, 2005.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.