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Judicial Foreclosure introduced in the state house today


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#1 C Mark Palm

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Posted 24 January 2012 - 01:45 PM

http://www.legis.ga....20112012/HB/781

This bill was introduced today in the state house by Rep. Dar'shun Kendrick of the 94th District. The bill co-sponsors are listed at the top of the page for the referring link. The gist is that Georgia would move from a non-judicial foreclosure to a judicial foreclosure process and lenders would not be allowed to seek deficiency judgement against the home owner. I will not provide my opinion just yet. I want yours first.

#2 Go BLUE!

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Posted 24 January 2012 - 01:47 PM

Can't get blood from a stone. If you don't have money to pay the note on the house, what money do the lenders think they are really going to get. IMO, the whole foreclosure process is one helluva scam by the lenders to start with.

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#3 Beach Bum

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Posted 24 January 2012 - 02:04 PM

http://www.legis.ga.gov/legislation/en-US/Display/20112012/HB/781

This bill was introduced today in the state house by Rep. Dar'shun Kendrick of the 94th District. The bill co-sponsors are listed at the top of the page for the referring link. The gist is that Georgia would move from a non-judicial foreclosure to a judicial foreclosure process and lenders would not be allowed to seek deficiency judgement against the home owner. I will not provide my opinion just yet. I want yours first.


I personally don't like this bill and would like to see Georgia remain a non-judicial foreclosure state. The judicial process takes longer therefore, the system remains clogged longer with pre-foreclosure properties thus keeping the properties "off the market" for sale until the process is completed. Mark - correct me on that if I am wrong. The flip side to that would be that the borrower's would have additional time to be able to reinstate their loans.

I have mixed feelings about deficiency balance suits also. On one hand, what can a borrower expect when they put absolutely zero money down to buy a house and then when they can't make the payments, they just abandon it. There should be repercussions in these circumstances. I realize you can't get blood from a turnip; however, the lender can get a deficiency judgment and possibly collect on it later down the road should the borrower's circumstances change - they might win the lottery or something!

Edited by Beach Bum, 24 January 2012 - 02:06 PM.


#4 C Mark Palm

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Posted 24 January 2012 - 02:09 PM

I personally don't like this bill and would like to see Georgia remain a non-judicial foreclosure state. The judicial process takes longer therefore, the system remains clogged longer with pre-foreclosure properties thus keeping the properties "off the market" for sale until the process is completed. Mark - correct me on that if I am wrong. The flip side to that would be that the borrower's would have additional time to be able to reinstate their loans.

I have mixed feelings about deficiency balance suits also. On one hand, what can a borrower expect when they put absolutely zero money down to buy a house and then when they can't make the payments, they just abandon it. There should be repercussions in these circumstances. I realize you can't get blood from a turnip; however, the lender can get a deficiency judgment and possibly collect on it later down the road should the borrower's circumstances change - they might win the lottery or something!


I do want to refrain from offering my opinion until later. However, to answer the question, currently you can catch up your payments up until the date of foreclosure. 11th hour so to speak. You do have that right. I'm going in depth on this in Thursday's Patch article. I'll have commentary from the Representative and others coming down on both sides.

#5 xxxxxxxxx

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Posted 24 January 2012 - 02:12 PM

Watch the interest rate go up. Interest rate is based upon risk, and the inability to sue for deficiency will raise that risk. Every new mortgage holder will pay for those walking away.

Blue, you would think that was true, but many people with good incomes are indeed "walking away" from their mortgages, preferring to trash their credit instead of paying on a home that is underwater. If this legislation passes there will be zero incentive to honor your debt secured by property if the value of the property is less than the amount owed. Second mortgages and lines of credit may disappear entirely.

#6 Tahoe

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Posted 24 January 2012 - 02:18 PM

I personally don't like this bill and would like to see Georgia remain a non-judicial foreclosure state. The judicial process takes longer therefore, the system remains clogged longer with pre-foreclosure properties thus keeping the properties "off the market" for sale until the process is completed. Mark - correct me on that if I am wrong. The flip side to that would be that the borrower's would have additional time to be able to reinstate their loans.

I have mixed feelings about deficiency balance suits also. On one hand, what can a borrower expect when they put absolutely zero money down to buy a house and then when they can't make the payments, they just abandon it. There should be repercussions in these circumstances. I realize you can't get blood from a turnip; however, the lender can get a deficiency judgment and possibly collect on it later down the road should the borrower's circumstances change - they might win the lottery or something!



Thats why people are in the mess they are in...."Have Paycheck,Get Mortgage with No Money Down" programs were riduclous....These homebuyers have no "skin" in the game, no money down on the house, nothing....all they have to loose is the "rent" payment.

Edited by Tahoe, 24 January 2012 - 02:19 PM.

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"Non-Liberal" because not everyone can be on welfare...edited at the request of p.com police


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#7 Beach Bum

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Posted 24 January 2012 - 02:18 PM

I do want to refrain from offering my opinion until later. However, to answer the question, currently you can catch up your payments up until the date of foreclosure. 11th hour so to speak. You do have that right. I'm going in depth on this in Thursday's Patch article. I'll have commentary from the Representative and others coming down on both sides.


I believe you are correct, you can reinstate up until the morning of the foreclosure even in a non-judicial foreclosure.

I will be interested in your opinion on this. I truly do not believe it will be a good thing for Georgia if it passes.

#8 Tahoe

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Posted 24 January 2012 - 02:40 PM

Looks like the change would clog up the court dockets too....like our courts can handle anything else on their calendar.
"Obama is not a Leader, he is a Ruler." Neal Bortz

Every trial we face is a trial of our Faith.
God will close your walls in to make you look to Him
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"Non-Liberal" because not everyone can be on welfare...edited at the request of p.com police


If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand. óMilton Friedman

#9 Beach Bum

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Posted 24 January 2012 - 02:43 PM

Looks like the change would clog up the court dockets too....like our courts can handle anything else on their calendar.


You are correct and I hadn't thought about it from that perspective. That is certainly something that I hope our legislators will keep in mind when voting on this.

#10 All I Hear is Blah Blah Blah

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Posted 24 January 2012 - 02:50 PM

I am not sure if this is the right answer, but something NEEDS to be done. The games these banks are playing with people ESPECIALLY in regards to modifications is out of hand. I think if modifications are going to be available to avoid foreclosure, there should be CLEAR and FIRM rules/conditions and remove the banks "whims" from the equation. I think the judicial process might help keep an eye out on the banks to ensure they are not getting out of hand. Again, not sure what the fix is, but the system is most definitely broken.

#11 icare

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Posted 24 January 2012 - 03:54 PM

Thats why people are in the mess they are in...."Have Paycheck,Get Mortgage with No Money Down" programs were riduclous....These homebuyers have no "skin" in the game, no money down on the house, nothing....all they have to loose is the "rent" payment.


What about a homeowner that had been in their house for 21 years and rarely been late. Husband lost his job, among other circumstances. Tried to get a loan modification and got caught in between Countrywide and Bank of America. BOA did not even give us a chance, we lost the home our children grew up in and it was the most painful, humiliating thing I have ever been through. I hope they all lose sleep at night but I truly doubt it. I will never trust a "BIG BANK" again. I am seriously thinking about a coffee can in the back yard.

#12 feelip

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Posted 24 January 2012 - 05:29 PM

From what I read and understood, this is putting more responsibility on the banks to make "good" loans. For a few years banks were throwing money at everything. In my opinion, that played a part in the inflated, over-valued price of a house.

Knowing that they can only recoup the property and not a deficiency decree stop the carelessness that got us where we are today. Just my opinion.

I'm sure it is not going to spur the housing industry.
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