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In Georgia , can a helot lender sue the borrower if the 1st has not foreclosed ?

Atlanta, GA |

If payment on a heloc in Georgia is stopped , can the heloc bank sue the borrower ? Or does the bank have to wait first foreclose ? I am wondering if Georgia has a security first rule which requires a secured lender to first foreclose . I stopped payment on my first and my heloc . But the first has not foreclosed not sure what is taking so long . I'm wondering if the heloc bank can just sue or do they have to first foreclose ? I know some states that this security first rule not sure if GA does .

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Attorney answers 3


The second lender can sue on the note or could foreclose but would have to deal with the first mortgage. There are a lot of facts which should be examined because if the foreclosures are not done properly you can avoid a deficiency. Once again I would note that attorneys soliciting people to file bankruptcy is improper. While bankruptcy is an option at times, it should be a last resort after all efforts to deal with debts are explored. The effect of a bankruptcy can scar someones credit for many many years. This forum is not about soliciting business!

This is not intended to create an attorney client relationship and none is to be implied either. You must contact an attorney and present all facts before you can and should act on this response



David, I appreciate your advice. And I agree this forum is not about soliciting business. I have used a number of attorneys from this forum but always ones that actually provide advice that one can tell they know what they are talking about. And not advice like "anyone can sue anyone"


Anyone can sue anyone. The question is whether the suing party will win, and attorneys in this forum are not going to be able to tell you whether you will lose a lawsuit. Contact an attorney.

The DiGiulio Law Firm, LLC. Phone: 888-540-4529 Website: Atlanta, Marietta, Lawrencevile, Duluth, Alpharetta, Buckhead The above answer is for general information purposes and is offered as a service to the public. Nothing on this or associated pages, documents, comments, answers, reviews or other communications, including the above post, should be taken as legal advice for any individual case or situation or relied upon as a substitute for engaging legal counsel, nor does it constitute advertising or a solicitation. Viewing the general information here, including your receipt or transmission of information hereof does not alone create or constitute an attorney-client relationship or ensure confidentiality. Please contact 770-309-9551 for additional questions or to schedule for your free phone consultation. If this question or answer pertains to bankruptcy, please be advised that we are a federal debt relief agency. One of our areas of practice is to help people file for bankruptcy relief and protection under the U.S. Bankruptcy Code.



I am asking about what the law is in GA, I know anyone can sue anyone. But in some states the heloc lender cannot sue they first have to foreclose since its a secured lender.


The 2nd mortgage company can sue you on the note, and that type suit is becoming common. They do not have to wait on a foreclosure. When they get a judgment they can garnishee your wages and bank accounts.

If you have stopped paying on both loans it would be very smart to see a bankruptcy lawyer. You may be able to discharge both debts. Or you may be able to keep paying on the 1st and strip off the second (you can now do this in some Chapter 7s as well as 13s). If you do not have a lawyer, call me at 404-768-3509.

If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to communicate general legal information and am not representing you (and am not your lawyer). Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. (You can also email my office at . An email also does not retain my office, but can help you get an appointment set if you prefer not to call). I am happy to discuss possible representation with you. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in my answer should be considered as tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. I am also required to advise you, if your question concerns bankruptcy, that the U.S. Congress has designated Ashman Law Office as a debt relief agency that can help people file bankruptcy.

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