Georgia HB 627, which proposes the Georgia Property Upkeep Act received its first reading in the House on March 4, 2009. This bill would require any individual, financial institution or other business entity purchasing a foreclosed property to maintain the property pursuant to county imposed requirements and penalties.  It also requires filing a bond with the Georgia Department of Community Affairs for 25% of the price paid for the foreclosed property. This bond must be filed at the time the foreclosure deed is recorded

If enacted, this legislation would amend Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure, by designating the current Part 2 as Subpart 1 of Part 2 and by adding a new subpart. Section 44-14-194 of the Georgia Code would require any individual, financial institution or other business entity purchasing a foreclosed property to maintain the property pursuant to county imposed requirements and penalties. The legislation would also require them to file with the Georgia Department of Community Affairs a bond in the amount of 25% of the price paid for the foreclosed property. This bond must be filed at the time the foreclosure deed is recorded.  The Department will be instructed not to record any foreclosure deed that does not have this bond attached.

If the county determines that a foreclosed property is unsafe and violates an established property maintenance standard, the county must provide a written notice of the violation to the purchaser by certified mail or statutory overnight delivery.  The condition must be corrected within (30) days of receipt of this notice.  If not, the foreclosure bond will be forfeited to the county and the proceeds used to correct the deficiency.  Any unused portion will be kept by the county to insure future upkeep.  If the full bond amount has been used, the owner of the property must file another bond of the same amount within 10 days or have the property forfeited to the county using the same procedures governing tax sales. 

To view a copy of the current version of the proposed legislation, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 500 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.