Georgia doesn’t use deeds of trust. If you’re looking into a deed of trust in Georgia because you’re buying, refinancing, or facing foreclosure here, the instrument you’ll actually sign is called a security deed (formally, a “deed to secure debt”). It does a similar job to a deed of trust, but it works differently in one way that changes almost everything else: it transfers title to your property directly to the lender until you pay the loan off.
What a Georgia Security Deed Is
Under O.C.G.A. 44-14-60, a security deed is treated as an absolute conveyance of title to the lender. The borrower keeps the right to get the property back once the debt is fully paid, but during the loan the lender holds title. The statute spells it out: a security deed “shall not be held to be a mortgage.”1Justia. Georgia Code 44-14-60 – Deed to Secure Debt as Absolute Conveyance
That makes a Georgia security deed different from both of the instruments you may already be familiar with:
- A classic deed of trust, as used in states like California or Texas, puts title in the hands of a neutral third-party trustee who holds it for the lender’s benefit. Georgia has no trustee in the middle. The lender itself holds title.
- A mortgage conveys no title at all. It creates only a lien against the property, and the borrower stays on title throughout the loan.
People use “deed of trust” and “security deed” interchangeably in casual conversation, and lenders operating in multiple states sometimes do the same. In Georgia the correct term is security deed, and the structural difference isn’t just terminology. Because title is already with the lender, Georgia law lets lenders foreclose outside of court and leaves borrowers with no right to buy the property back after a sale. Most Georgia home loans use security deeds for exactly that reason.
How Foreclosure Works on a Georgia Security Deed
Georgia is a non-judicial foreclosure state. As long as the security deed contains a power of sale clause (nearly all do), the lender can foreclose without filing a lawsuit.2Office of the Attorney General of Georgia. Mortgage and Foreclosure Information The process is fast compared to judicial foreclosure states, but it does have required steps, and skipping any of them can invalidate the sale.
Notice to the Borrower
The lender must send written notice of the foreclosure to the borrower at least 30 days before the sale date. The notice has to go by certified mail, registered mail, or statutory overnight delivery with return receipt requested, and it must include a copy of the published foreclosure advertisement along with the name, address, and phone number of someone with full authority to discuss modifying the loan.3Justia. Georgia Code 44-14-162.2 – Sales Made on Foreclosure Under Power of Sale – Mailing or Delivery of Notice to Debtor – Procedure
Published Advertisement
The lender must also publish notice in the county’s official legal organ (the same newspaper used for sheriff’s sales) once a week for four consecutive weeks before the sale.2Office of the Attorney General of Georgia. Mortgage and Foreclosure Information If the ad lists the property’s street address, city, and ZIP code, that information must appear in bold type.4Justia. Georgia Code 44-14-162 – Sales Made on Foreclosure Under Power of Sale
The Sale
Foreclosure sales take place on the courthouse steps in the county where the property sits, on the first Tuesday of the month, between 10:00 a.m. and 4:00 p.m. Anyone can bid, but in practice the lender is often the only bidder. Before the sale, the lender must have filed proof with the county clerk that it owns the security instrument.
Deficiency Judgments: The 30-Day Confirmation Rule
If the foreclosure sale doesn’t bring in enough to cover what you owe, the lender may try to collect the shortfall from you personally. Georgia doesn’t make that easy. Under O.C.G.A. 44-14-161, a lender that forecloses out of court must report the sale to a superior court judge within 30 days for confirmation. Without confirmation, no deficiency judgment is allowed.5Justia. Georgia Code 44-14-161 – Sales Made on Foreclosure Under Power of Sale – When Deficiency Judgment Allowed
The hearing isn’t a formality. The judge reviews evidence of the property’s true market value and will only confirm the sale if the property brought what it was worth. You get at least five days’ notice before the hearing. The court also looks at whether the lender followed every notice and advertisement rule. If something is wrong, the court can order a resale.5Justia. Georgia Code 44-14-161 – Sales Made on Foreclosure Under Power of Sale – When Deficiency Judgment Allowed
If you’ve been through a Georgia foreclosure, watch the calendar. Miss by the lender here is final: no confirmation filing within 30 days, no deficiency judgment, ever.
No Right to Redeem After the Sale
This part surprises people who move to Georgia from states with post-sale redemption periods. Once a security deed foreclosure sale happens and the deed is delivered to the buyer, your interest in the property is gone. Georgia gives no statutory right to buy it back.
You do have an “equity of redemption” before the sale: you can stop the foreclosure by paying the full debt at any point up until the gavel falls. After that, the window is closed. The only Georgia real estate sale that carries a post-sale redemption right is a tax sale, which runs under separate statutes and allows 12 months to redeem.
Clearing the Security Deed After You Pay Off the Loan
Because a security deed put title in the lender’s hands, paying off the loan isn’t the end of the paperwork. The lender has to formally release the deed, or the record will still show the lender holding title to your property, which clouds your ability to sell or refinance later.
Georgia law gives the lender 60 days after payoff to do two things: send you written notice that cancellation has been transmitted, and file a legally sufficient cancellation document with the superior court clerk in the county where the security deed is recorded. The notice to you must also inform you of your right to demand $500 in liquidated damages if the lender misses that deadline.6Justia. Georgia Code 44-14-3 – Furnishing of Cancellation by Grantee or Holder Upon Payment
If the 60 days pass with nothing filed, send a written demand for the $500. You have to send that demand at least 15 business days before filing suit, giving the lender a final chance to comply. Beyond the flat $500, you can recover actual losses the delay caused (for example, costs from a stalled sale or refinance) plus reasonable attorney’s fees. A lender escapes liability only by showing a reasonable inability to comply, not simple oversight.6Justia. Georgia Code 44-14-3 – Furnishing of Cancellation by Grantee or Holder Upon Payment
If you’ve paid off a Georgia home loan and haven’t seen a recorded cancellation within 60 days, make the written demand promptly. That one letter protects your title and preserves your right to the statutory damages.