HB 948: Property; debtors in foreclosures to receive certain information and forms in a notice of foreclosure; provide

Under current Georgia law (O.C.G.A. § 44-14-162.2), a lender starting foreclosure must send the homeowner a written notice at least 30 days before the sale, including contact information for someone who can negotiate the mortgage terms. This bill adds new requirements to that notice. It must now also tell the debtor about their right to claim any surplus funds left over after the foreclosure sale, explain how to start that claim, and include a bold-font warning that unclaimed surplus money can eventually become the state's property (escheat) under Georgia's unclaimed property law (O.C.G.A. § 44-12-193), currently after five years. The bill also changes how the notice must be mailed, requiring certified mail or overnight delivery with tracking instead of a return receipt. It updates the law on distributing sale proceeds (O.C.G.A. § 44-14-190) to clarify that surplus funds are paid out after other liens are settled by legal priority, including statutory liens, before going to the mortgagor or their agent.

• Requires foreclosure notices to inform debtors of their right to claim surplus funds left over after a foreclosure sale and how to start that claim.
• Adds a required bold-font warning that unclaimed surplus funds may eventually become state property (escheat) after a set time period.
• Changes the required mailing method for foreclosure notices from certified mail with return receipt requested to certified mail or overnight delivery with tracking.
• Clarifies that surplus sale proceeds must be distributed according to legal priority among liens, including statutory liens, before any remainder goes to the mortgagor.

Homeowners and other debtors facing foreclosure in Georgia, secured creditors and mortgage lenders who must send foreclosure notices, and anyone with a lien on foreclosed property who may have a claim to sale proceeds ahead of the mortgagor.

Debtors who lose their homes to foreclosure often do not realize they can claim leftover sale proceeds, and money that goes unclaimed can eventually be forfeited to the state. This bill would make lenders explain that right clearly, potentially helping more former homeowners recover money owed to them.

• Section 1 amends O.C.G.A. § 44-14-162.2 to require foreclosure notices to include instructions for making an initial claim for surplus funds under O.C.G.A. § 44-14-190.
• Section 1 requires a bold-font warning in the notice that surplus funds may escheat to the state under O.C.G.A. § 44-12-193 if not claimed within the current five-year window.
• Section 1 changes the required delivery method from return receipt requested to tracking requested for certified mail or statutory overnight delivery.
• Section 2 amends O.C.G.A. § 44-14-190 to specify that surplus proceeds go toward liens in legal priority order, including statutory liens, before payment to the mortgagor or agent.
• Section 3 repeals conflicting laws.

1. 2026-03-19Senate Read Second Time (Senate)
2. 2026-03-18Senate Committee Favorably Reported (Senate)
3. 2026-02-17Senate Read and Referred (Senate)
4. 2026-02-12House Passed/Adopted By Substitute (House)
5. 2026-02-12House Third Readers (House)
6. 2026-02-06House Committee Favorably Reported By Substitute (House)
7. 2026-01-14House Second Readers (House)
8. 2026-01-13House First Readers (House)

• Beth Camp (R, HD-135)Primary sponsor
• Clint Crowe (R, HD-118)
• Karen Mathiak (R, HD-082)
• Alan Powell (R, HD-033)
• Rob Leverett (R, HD-123)
• Steven McNeel (R, SD-018)

1. PassedHouse voteFebruary 12, 2026

   159 yea, 0 nay (6 not voting, 10 absent)

   Passage: House Vote #510

• foreclosure
• surplus funds
• property law
• debtor rights
• unclaimed property