Withdrawal of Foreclosure Proceedings After Acceleration of Maturity of Indebtedness; Effect on Running of Statute of Limitations; Rescission of Acceleration

  1. Law
  2. Georgia Code
  3. Property
  4. Mortgages, Conveyances to Secure Debt, and Liens
  5. Conveyances to Secure Debt and Bills of Sale
  6. Reversion
  7. Withdrawal of Foreclosure Proceedings After Acceleration of Maturity of Indebtedness; Effect on Running of Statute of Limitations; Rescission of Acceleration

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  1. The acceleration of the maturity of an indebtedness which is evidenced by a note or otherwise and secured by a deed to secure debt conveying real property and the commencement of foreclosure proceedings by the advertisement of a sale under the power contained in the deed or by an action shall not commence the running of the statute of limitations against the exercise of any right, power, or privilege authorized in the deed or the evidence of the indebtedness secured thereby or the right to bring an action to enforce any provision of the deed or to collect the indebtedness secured thereby if the foreclosure proceedings are withdrawn prior to their completion by sale or otherwise. Such withdrawal shall operate to rescind the acceleration of the maturity of the indebtedness and to reinstate the indebtedness upon the terms and conditions existing prior to the acceleration. Such withdrawal shall not prejudice the right of the holder of the indebtedness and deed securing same to exercise any and all rights to accelerate the maturity of the indebtedness and to exercise any right or power contained in the deed or the evidence of the indebtedness secured thereby or conferred by law should a subsequent default occur.
  2. Nothing contained in subsection (a) of this Code section shall prevent, restrict, or otherwise impair the exercise of any other right or privilege conferred by law; but the rights contained in subsection (a) of this Code section shall be cumulative and in addition thereto.

(Ga. L. 1956, p. 716, §§ 1, 2.)

Law reviews.

- Commercial Law, see 53 Mercer L. Rev. 153 (2001). For survey article on real property law, see 67 Mercer L. Rev. 193 (2015).

JUDICIAL DECISIONS

Withdrawal does not eliminate question of surety's liability.

- O.C.G.A. § 44-14-85 permits withdrawal of foreclosure proceedings prior to completion without prejudice to the right of the holder. However, that section does not eliminate fact questions as to whether a surety on the obligation foreclosed upon is discharged by reason of the withdrawal. Hart v. DeLowe Partners, Ltd., 147 Ga. App. 715, 250 S.E.2d 169 (1978).

Foreclosure proceedings stated by bankruptcy court.

- O.C.G.A. § 44-14-85 applies only to those foreclosure proceedings that have been withdrawn and does not apply where foreclosure proceedings were stayed by the bankruptcy court as a result of action taken by the debtors. Rapps v. Cooke, 246 Ga. App. 251, 540 S.E.2d 241 (2000).

Cited in Williams v. O'Connor, 208 Ga. 801, 69 S.E.2d 726 (1952).


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