Thousands of the foreclosure sales that will take place this Tuesday on courthouse steps across Georgia could violate state law, consumer advocates say, because banks aren’t complying with a court ruling affirming a 2008 statute meant to give struggling borrowers a fairer shot at saving their homes.
The ruling last month involves the way mortgage firms disclose who owns a delinquent borrower’s loan and where they can turn for help to potentially avoid foreclosure.
Borrower attorneys originally believed the July 12 decision might have applied mostly to past foreclosures, mostly from 2008 until 2011. Now, many say the decision could leave banks open not only to lawsuits for monetary damages from borrowers already foreclosed on, but from those still fending off lenders.
Some say the ruling could slow down the pace of foreclosures in Georgia, which appears to be regaining steam.