The Newnan Times-Herald reported today that for the first time the number of foreclosures advertised in the legal section of the paper surpassed three hundred for the first time ever,
Georgia is a non-judicial state. Once a borrower defaults, the holder of the security deed merely has to notify the property owner of the foreclosure, and advertise it is the legal organ of the county for a minimum of four consecutive weeks.
Then on the first Tuesday of the month, beginning at ten A.M. the property will be auctioned at public outcry on the courthouse steps to the highest cash bidder.
Not every advertised property will go to the steps, as some of the loans will be redeemed or the borrower may seek legal relief to postpone the sale. But a lot of them will be sold, and the vast majority will be purchased by the lender or note holder, as the amount of the loan may very well exceed the market value of the property.
In a market already saturated with REO properties, this new influx of inventory will lead to continued instability in property values.