Georgia mortgage laws explained: from closing to foreclosure
Georgia forecloses by security deed on the courthouse steps in as little as a month, then makes the lender prove true market value in court before chasing a deficiency — all under an intangible tax on the note and an attorney-only closing. What follows is the state layer — the rules that sit on top of TILA, RESPA and the federal servicing regime when the property is in Georgia.
| Closing practice | Attorney closing state |
|---|---|
| Community property | No — common-law (separate property) state |
| Mortgage recording tax | Georgia imposes an intangible recording tax on long-term notes (those due more than three years out) of $1.50 per $500 of principal — $3 per $1,000, capped at $25,000 — payable by the borrower when the security deed is recorded (O.C.G.A. § 48-6-61); short-term notes are exempt. |
| Transfer tax (deed) | Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays. |
| Usury ceiling | Georgia allows any rate agreed in writing on loans above $3,000, up to 5% per month (60% per year) on loans under $250,000; loans of $250,000 or more have no cap. |
| Foreclosure | Non-judicial · 1 to 2 months to sale · deficiency: allowed, with limits |
How a Georgia closing is conducted
Georgia is an attorney-closing state by decision of its Supreme Court: only a Georgia-licensed attorney may conduct a residential closing and disburse the funds, and the attorney must be physically present rather than delegating to a notary (Formal Advisory Opinion 13-1). The closing attorney represents the lender, examines title, prepares the security deed and the warranty deed, and funds the same day under Georgia’s good-funds rule. Georgia uses a security deed (deed to secure debt) with a power of sale instead of a mortgage, which makes it a title-theory state.
Marital property and homestead rules in Georgia
Georgia is a separate-property state; dower was abolished in 1969 and there is no homestead joinder requirement, so a spouse who is not on title does not have to sign the security deed. Joint tenancy with right of survivorship must be expressly created in the deed (O.C.G.A. § 44-6-190); otherwise co-owners hold as tenants in common. The non-borrowing spouse’s debts are not counted in underwriting because there is no community liability.
Georgia opted out of the federal bankruptcy exemptions and protects $21,500 of equity in the debtor’s residence ($43,000 for a married couple filing together) under O.C.G.A. § 44-13-100, while the older constitutional homestead in § 44-13-1 is only a few thousand dollars; neither defeats a security deed, tax lien or HOA lien. On the tax side, the standard homestead exemption removes $2,000 of assessed value (Georgia assesses at 40% of fair market value) for state and county purposes (O.C.G.A. § 48-5-44), many counties and cities add larger local exemptions and senior exemptions from school tax, and House Bill 581, approved by voters in 2024, created a statewide floating homestead exemption that caps assessment growth at inflation unless a local government opted out.
What Georgia charges on the note and the deed
Georgia imposes an intangible recording tax on long-term notes (those due more than three years out) of $1.50 per $500 of principal — $3 per $1,000, capped at $25,000 — payable by the borrower when the security deed is recorded (O.C.G.A. § 48-6-61); short-term notes are exempt. A separate real estate transfer tax of $1 per $1,000 applies to the deed and is customarily paid by the seller. Each county also charges a per-page recording fee.
Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays.
Paying off early: the Georgia rule
The Georgia Fair Lending Act restricts prepayment penalties on home loans and prohibits them on high-cost home loans, and after the 2003 amendments most remaining limits track federal law, so the practical rule is the qualified-mortgage cap of three years and declining percentages. A penalty must appear in the note to be collected, and Georgia residential mortgage licensees must disclose it in their fee disclosures. Ask the Department of Banking and Finance if a penalty in a Georgia note looks unusual.
Georgia’s anti-predatory lending law
Georgia passed the Georgia Fair Lending Act (GAFLA, O.C.G.A. § 7-6A-1 et seq.) in 2002 — then the nation’s toughest — and scaled it back in 2003 after rating agencies refused to rate Georgia loans. The surviving statute defines high-cost home loans with an APR trigger of 8 points over Treasury for first liens and a points-and-fees trigger of 5% of the loan amount, prohibits flipping without a reasonable tangible net benefit, requires counseling before a high-cost loan, and bans financing of single-premium credit insurance on any home loan. The Department of Banking and Finance enforces it against licensees.
Georgia allows any rate agreed in writing on loans above $3,000, up to 5% per month (60% per year) on loans under $250,000; loans of $250,000 or more have no cap. Business-purpose hard money loans are therefore rate-unrestricted in practice, with criminal usury only above 5% per month.
Checking a Georgia lender’s license
Mortgage lenders and brokers are licensed by the Georgia Department of Banking and Finance under the Georgia Residential Mortgage Act (GRMA, O.C.G.A. § 7-1-1000 et seq.), with loan originators licensed through NMLS. Georgia exempts a person who makes five or fewer mortgage loans in a calendar year, along with banks and credit unions, and it collects a $10 per-loan GRMA fee on every residential mortgage closed (§ 7-1-1011). The Department’s website provides the licensee lookup and complaint form.
Disclosures and cure periods under Georgia law
Georgia has no notable state origination disclosure beyond TRID and GRMA fee disclosures, but its non-judicial foreclosure notices are exact: the lender must mail the borrower a notice of the sale at least 30 days before it (O.C.G.A. § 44-14-162.2) and advertise for four consecutive weeks in the county’s legal organ, with sales on the first Tuesday of the month on the courthouse steps. There is no right of redemption after the sale. To pursue a deficiency the lender must file for judicial confirmation within 30 days and prove the property sold for its true market value (O.C.G.A. § 44-14-161), which is the borrower’s main protection.
What happens after a default in Georgia
The state’s foreclosure path is non-judicial; budget 1 to 2 months to a sale in an ordinary case, longer if contested. The 30-day notice must include the name and contact information of the party with authority to negotiate a modification, and the borrower may pay the full past-due amount before the sale if the security deed allows reinstatement. The full timeline, redemption and mediation rules are on foreclosure in Georgia; the investor view — usury, licensing exemptions, recovery speed — on hard money in Georgia.
Frequently asked questions
Do I need a lawyer to close a mortgage in Georgia?
Georgia is an attorney-closing state by decision of its Supreme Court: only a Georgia-licensed attorney may conduct a residential closing and disburse the funds, and the attorney must be physically present rather than delegating to a notary (Formal Advisory Opinion 13-1). Even where the state does not require one, a borrower may hire independent counsel to review the note, the security instrument and the title commitment.
Does Georgia allow prepayment penalties on home loans?
The Georgia Fair Lending Act restricts prepayment penalties on home loans and prohibits them on high-cost home loans, and after the 2003 amendments most remaining limits track federal law, so the practical rule is the qualified-mortgage cap of three years and declining percentages. Check the Loan Estimate: the “Prepayment penalty” line on page 1 must say yes or no, and the amount and term if yes.
What does Georgia charge to record a mortgage?
Georgia imposes an intangible recording tax on long-term notes (those due more than three years out) of $1.50 per $500 of principal — $3 per $1,000, capped at $25,000 — payable by the borrower when the security deed is recorded (O.C.G.A. § 48-6-61); short-term notes are exempt. Georgia’s real estate transfer tax is $1 per $1,000 (0.1%), customarily paid by the seller, plus an intangible recording tax of $1.50 per $500 of the loan amount (0.3%) that the borrower usually pays.
Who licenses mortgage lenders in Georgia?
Mortgage lenders and brokers are licensed by the Georgia Department of Banking and Finance under the Georgia Residential Mortgage Act (GRMA, O.C.G.A. § 7-1-1000 et seq.), with loan originators licensed through NMLS. Every individual originator must also hold an NMLS identifier, printed on the application and the Loan Estimate; it can be checked on NMLS Consumer Access.
Federal layer: TILA / Reg Z · RESPA · TRID disclosures · ECOA · Fair Housing Act · all federal regulations. Buying here: first-time buyer programs in Georgia.