Daily Development for Wednesday, October 19, 2005
by: Patrick A. Randolph, Jr.
Elmer F. Pierson Professor of Law
UMKC School of Law
Of Counsel: Blackwell Sanders Peper Martin
Kansas City, Missouri
dirt@umkc.edu

MORTGAGE; DEFICIENCIES; CHOICE OF LAW:   If a foreclosure occurs in another state, which does not require judicial confirmation in order to collect a deficiency, and the rights are assigned to a bank in a state (Georgia)  that does require such confirmation,  the bank is not required to get judicial confirmation of foreclosure sale in accordance with its own state's law before seeking deficiency judgment in its own state.  

Graham v. Casa Investments Co., 274 Ga.App. 59, 616 S.E.2d 833 (2005). 

The court commented that the dispositive question was not where the mortgage defendant resided, but rather where the contract was made.

Comment:   Thus, the court does not seem to be of the view that the situs of the foreclosure was critical.  Does this mean that if a Georgia resident borrowed money in Alabama from an Alabama bank and the loan was secured by Georgia property, there would be no requirement for a judicial confirmation before the Alabama bank could pursue a deficiency?  The editor suspects that the answer to this question is “no” and that the court has perhaps overstated its emphasis on the situs of the contract.  (Unless all mortgages loans secured by Georgia property are by definition sited in Georgia. 

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