Georgia Home Law

Since foreclosures have been in the news a lot lately (see this link to today's Atlanta Business Chronicle), this re-post is especially timely:

Here's a question:  When you pay your mortgage in full, can you challenge the foreclosure?   A recent case in Georgia has the following answer:  Yes, but you must file a separate lawsuit; you cannot use it as a defense in an eviction proceeding.   Good to know.  It means that you have to go through about 20 different proverbial "hoops," though.

Case in point:  A Georgia couple, Mr. and Mrs. Vines, got foreclosed by their bank, LaSalleBank National Association.  After the foreclosure, the Vines did not move from the property so LaSalle filed an eviction proceeding in DeKalb county.  At the eviction trial, Mr. and Mrs. Vines argued that the foreclosure was wrongful because they had paid their mortgage in full.  The court issued a writ for dispossession (i.e., eviction) at the end of the trial.  The Vines' appealed to the Georgia Court of Appeals.

The Court of Appeals held that Mr. and Mrs. Vines could not use the "we made our payment in full" defense in the eviction proceeding because it was procedurally improper.  Instead, they should have filed a separate case to set aside the foreclosure.  Oh, and when you appeal a case, you should also attach the transcript from the lower court, which the Vines failed to do.

So now you know.  If you want to allege that your foreclosure was wrongful - and you wait until the bank has already started proceedings to evict you from your fully paid-for house - then you better get down to the courthouse right away to file your own lawsuit.

The case is Vines v. LaSalle Bank Natl. Association, 10 FCDR 422 (February 26, 2010).