Atlanta Business Bank held a promissory note and a deed to secure debt given by 129 Acres, Inc. and guaranteed by Greg Shoops and R. Chris Belans collectively, “defendants”. After defendants defaulted, the bank exercised the power granted in the deed to conduct a foreclosure sale of the real property, and thereafter filed an action to confirm the foreclosure in the Paulding County Superior Court pursuant to OCGA § 44-14-161. The trial court confirmed the sale, holding that defendants were properly served with notice, that the foreclosure sale was lawfully conducted, and that the property sold for at least its fair market value. On appeal from the confirmation order, defendants argue the trial court should have dismissed the confirmation action because the bank did not properly report the sale to the court in that Shoops and Belans were not listed personally in the initial report filed with the court. We disagree and affirm. The record shows that the bank loaned defendants $4,922,000 on security of roughly 129 acres of subject property on November 29, 2006. The bank initiated foreclosure proceedings after defendants defaulted. The property was sold to Atlanta Business Bank for $2,850,000. The bank then filed an application for confirmation of sale under power pursuant to OCGA § 44-14-161, reporting the foreclosure sale to the court and naming 129 Acres as the only respondent. The bank later moved to add Shoops and Belans as parties to the confirmation proceedings, which motion was granted.1 Following court-authorized service by publication on Shoops and Belans and service on the Secretary of State for 129 Acres, the court confirmed the foreclosure sale as to all three defendants.
The relevant part of Georgia’s confirmation statute provides: When any real estate is sold on foreclosure, without legal process, and under powers contained in security deeds, mortgages, or other lien contracts and at the sale the real estate does not bring the amount of the debt secured by the deed, mortgage, or contract, no action may be taken to obtain a deficiency judgment unless the person instituting the foreclosure proceedings shall, within 30 days after the sale, report the sale to the judge of the superior court of the county in which the land is located for confirmation and approval and shall obtain an order of confirmation and approval thereon. OCGA § 44-14-161 a emphasis added. “OCGA § 44-14-161 is in derogation of common law and must be strictly construed.” Bentley v. North Ga. Production Credit Assn. , 170 Ga. App. 361 317 SE2d 339 1984.
