HB948: HB948 Property; debtors in foreclosures to receive certain information and forms in a notice of foreclosure; provide

26 LC 62 0306S House Bill 948 (COMMITTEE SUBSTITUTE) By: Representatives Camp of the 135th, Crowe of the 118th, Mathiak of the 82nd, Powell of the 33rd, and Leverett of the 123rd A BILL TO BE ENTITLED AN ACT To amend Article 7 of Chapter 14 of Title 44 of the Official Co de of Georgia Annotated,1 relating to foreclosure, so as to provide for debtors in forecl osures to receive certain2 information and forms in a notice of foreclosure; to provide for notice of certain information3 when surplus funds are available; to provide for related matters; to repeal conflicting laws;4 and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 7 of Chapter 14 of Title 44 of the Official Code of Geo rgia Annotated, relating to8 foreclosure, is amended by revising Code Section 44-14-162.2, r elating to mailing or9 delivery of notice to debtor and procedure, as follows:10 "(a)(1) Notice of the initiation of proceedings to exercise a power of sale in a mortgage,11 security deed, or other lien contract shall be given to the debtor by the secured creditor12 no later than 30 days before the date of the proposed foreclosure.13 (2) The notice required by paragraph (1) of this subsection Such notice shall be in14 writing, shall include the name, address, and telephone number of the individual or entity15 who that shall have full authority to negotiate, amend, and modify all terms of the16 H. B. 948 (SUB) - 1 - 26 LC 62 0306S mortgage with the debtor, notice of the mortgagor's right to in itiate a claim for any17 surplus funds after the foreclosure sale pursuant to Code Secti on 44-14-190, and18 instructions on how to make an initial claim for surplus funds which may be due to them,19 and shall be sent by registered or certified mail or statutory overnight delivery, return20 receipt requested with tracking requested, to the property address or to such other address21 as the debtor may designate by written notice to the secured cr editor. The notice shall22 also contain the following language in bold font:23 'Surplus funds may be considered abandoned property and may escheat to the State if you24 do not claim funds due to you within the timeline prescribed by O.C.G.A. 44-12-193,25 which is currently five years but is subject to change should O .C.G.A. 44-12-193 be26 revised in the future.'27 (3) The notice required by this Code section paragraph (1) of this subsection shall be28 deemed given on the official postmark day or day on which it is received for delivery by29 a commercial delivery firm. Nothing in this subsection shall b e construed to require a30 secured creditor to negotiate, amend, or modify the terms of a mortgage instrument.31 (b) The notice required by paragraph (1) of subsection (a) of this Code section shall be32 given by mailing or delivering to the debtor a copy of the notice of sale to be submitted to33 the publisher."34 SECTION 2.35 Said article is further amended by revising Code Section 44-14-190, relating to disposition36 of proceeds, to read as follows:37 "44-14-190.38 The money arising from the sale of mortgaged property sold unde r the regulations39 prescribed in this part shall be paid to the person foreclosing the mortgage unless claimed40 by some other lien which by law has priority of payment over th e mortgage; and, when41 there is any surplus after paying off the mortgage and other liens by priority as described42 H. B. 948 (SUB) - 2 - 26 LC 62 0306S by law, including statutory liens where applicable , the surplus shall be paid to the43 mortgagor or his or her agent."44 SECTION 3.45 All laws and parts of laws in conflict with this Act are repealed.46 H. B. 948 (SUB) - 3 -