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It's the first Tuesday of the month, and you know what that means! The rite of foreclosure will be performed at your local courthouse.

By
Real Estate Broker/Owner with Richard Weisser Realty

Coweta County Courthouse from Greenville Street Park by Richard WeisserToday is the first Tuesday of the Month, and in Georgia, that has a significant meaning. At 10:00 A.M. at the Coweta County Courthouse, and at every other county courthouse in the state of Georgia, the calls for bids "at public outcry" for properties in default will commence.

Georgia is a non-judicial foreclosure state. All a mortgagor has to do is notify the mortgagee of the default and advertise the auction in the county "legal organ" for four weeks.

Then the attorneys will literally stand on the courthouse steps, rain or shine, and read the notices word for word. After the notice is read, the bank's bid is entered, and that's usually all that happens.

You would think that there would be hundreds of people lurking about for the nearly 200 properties that will be called, but there is usually just a handful. Because out of all of those properties being offered for sale, very few are bargains. Most are so upside down that the potential buyer is much better off waiting for the property to be sold as a bank REO.

But from a spectator's perspective, the process is at least interesting, if not compelling. It's an archaic ritual that seems a little out of place in 2009.

And it is being repeated far too often.

Note: The procedure outlined in this article applies only to the state of Georgia. State laws vary; always verify your local procedures.

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate of ERA United Realty Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser 770-827-6225.
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Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Don't walk up those courthouse steps...run!  Every state does it different, but the end result is the same. You pay you stay, you don't you won't.

Aug 04, 2009 12:02 AM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

My county has there's on the first Monday (yesterday) and its quite the opposite of your description. Hundreds of people for 40 or so property's. No deals there.

Aug 04, 2009 12:07 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Richard, well, the courts aren't clogged up, but still.. How horrible. I am, as we all are, waiting for this to be over. For the homes to be resold yet again at reasonable prices. Then they will be healed.

I have always had a vision of Snidely Whiplash on the steps of the courthouse... with the families crouched down in the background... it is not a pretty picture.

Aug 04, 2009 12:08 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Andrew...

And there will be a new "crop" of REO homes in a week or two! Thanks for the comment.

Laura...

Bidders must pay cash within 30 minutes of sale, but since the banks bid the mortgage balance plus attorney's fees, there are few bargains! THX

Andrea...

Actually, the process in antiseptic...just the drone of repetitive reading ... it's more interesting than anything else! Thanls, as always.

Aug 04, 2009 12:27 AM
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Here in NJ I encourage buyers to wait for the bank...let the bank clean up the title!

Aug 04, 2009 12:34 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

never actually attended one... I probably should, if only for the experience.

Aug 04, 2009 12:54 AM
Roy Kelley
Retired - Gaithersburg, MD

The lenders are also purchasing most of the properties that are sold at trustee sales in Maryland. Most of the foreclosures relate to mortgage loans that were obtained in 2005-2007.  The REO inventory is selling quickly.

Aug 04, 2009 12:59 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Richard:  I'm amazed that 90% of the time  the banks end up with the properties sold on the Courthouse steps too.  Or that people think they can "steal" these properties.  I don't know what makes people think that a bank doesn't want market value.   

Aug 04, 2009 01:10 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

In Minnesota, it isn't real attractive to Purchase these foreclosures.   YOu have to pay for them in full the day of the auction.  Then, the owner in default has 6 months to reclaim the property by paying all back fees and monies owed.  Even if the defaulter doesn't try to reclaim, they have 6 months to stay there rent free.   If within that 6 months the defaulter does reclaim the property, the person who purchased the property at auction get's their money back, BUT, no interest is paid.

Doeson't make for many people wanting to bid on these homes.  If the property is zoned agriculture the redeption period is 1 year.

Aug 04, 2009 01:12 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Definately it is better for buyers here in Maryland to let the house go to foreclosure, avoid the short sale, avoid the courthouse steps, and buy it as an REO. Thanks for the grim story.

Aug 04, 2009 01:27 AM
Ashley Sharum
972.978.3109 - Dallas, TX
Ebby Halliday Realtors

Here in Texas, we call it "Super Tuesday" and boy does my Broker get antsy. Today will dictate the week that we have and the assignments that we get from the Banks. Which in turn dictates the month we'll have and what to expect for closings.

Wish you the best,

Aug 04, 2009 01:34 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Richard, a few months back our County made the 6:00 o'clock news. The only people on the court house steps were the person reading the notices and the news crew. Even though no one showed up, they still had to go through the motions.

Aug 04, 2009 02:01 AM
Carol Hanson Sheehy
Prudential Florida Realty - Naples, FL

You are right the process is outdated.  It would be interesting to see it.  Will add to "bucket list."

Aug 04, 2009 02:22 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

I've been to the auction on the courthouse steps and it's interesting. Outdated, but interesting.

Rich

Aug 04, 2009 02:24 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Richard, We meet on the court house steps on Thursdays here...and there really are some great buys!

Aug 04, 2009 02:30 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

It's definately a sign of the times.

Aug 04, 2009 03:11 AM
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

I have been to many of these in several counties here in SC. Most people in Columbia have no idea that they even take place and most people who go end up walking away for the very reason you said above. It's not the bargain they thought it would be.

Aug 04, 2009 06:53 AM