Treatment of Proceeds of Sale When Debt Due in Installments

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If the mortgage is given to secure a debt due by installments and is foreclosed before any one of the installments falls due and there is a surplus of funds as provided in Code Section 44-14-190, the court may retain the funds or order them to be invested to meet the unpaid installments.

(Orig. Code 1863, § 3874; Code 1868, § 3894; Code 1873, § 3970; Code 1882, § 3970; Civil Code 1895, § 2752; Civil Code 1910, § 3285; Code 1933, § 67-502.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 55 Am. Jur. 2d, Mortgages, § 785.

ALR.

- Right of holder of interest coupons through one who had guaranteed their payment to share with holder of principal obligation in proceeds of mortgage security, 41 A.L.R. 1254.

Financial depression or lack of market as ground for enjoining sale under a mortgage or deed of trust to secure debt, 82 A.L.R. 976; 90 A.L.R. 1330; 94 A.L.R. 1352; 96 A.L.R. 853; 97 A.L.R. 1123; 104 A.L.R. 375.

Protection of mortgagor or owner of mortgaged property, on foreclosure sale, by fixing upset or minimum price, requiring credit of specified amount on mortgage debt, or denying or limiting amount of deficiency judgment, 89 A.L.R. 1087; 90 A.L.R. 1330; 94 A.L.R. 1352; 96 A.L.R. 853; 97 A.L.R. 1123; 104 A.L.R. 375.

Excess of payment for one period as applicable to subsequent period under contract or mortgage providing for periodic payments, 89 A.L.R.3d 947.

PART 3 FORECLOSURE OF DEEDS TO SECURE DEBT, PURCHASE CONTRACTS, AND BONDS FOR TITLE

JUDICIAL DECISIONS

Priority.

- As between secured creditors in a real property senior creditor foreclosure situation, junior creditors' rights are only as protected under the foreclosure requirements. Chattanooga Fed. Sav. & Loan Ass'n v. Northwest Recreational Activities, Inc., 4 Bankr. 33 (Bankr. N.D. Ga. 1980).

Cited in Scroggins v. Harper, 138 Ga. App. 783, 227 S.E.2d 513 (1976).


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