Most of the current challenges, investigations, and allegations concerning improper affidavits, signatures, notaries, and foreclosures are in states with “judicial” foreclosure, where a judge must approve the procedure, based on the paperwork provided. There have been claims that this paperwork includes false affidavits, improperly notarized documents, and other defects.
Georgia is one of 27 states that do not require a judicial hearing for lenders to foreclose on borrowers in default.
Georgia has “non-judicial” foreclosure, which requires public notice by 4 weeks of advertising in the county newspaper for legal notices, followed by an auction of the property on the courthouse steps in the county where the property is located.
Although all 50 states are cooperating to investigate improper foreclosures, there are no title issues or title insurance coverage problems for people buying foreclosures in Georgia right now.
Some of the major lenders may still decide to delay or stop foreclosures nationwide, but if the foreclosures proceed in Georgia, the titles will be insurable.
This is another reason that the buyers should always get Owner’s Title Insurance, even if it is not paid for or provided by the REO (foreclosure bank) seller.
This legal tip is provided courtesy of Baverman & Associates and Neel & Robinson, Attorneys at Law.