REL & Assocs. LLC v. Federal Deposit Ins. Corp.

The FDIC's report of the foreclosure sale met the statutory requirements of O.C.G.A. § 44-14-161 a, because the FDIC reported the sale, within 30 days of the foreclosure sale, to a judge, who was authorized by designation to sit as a superior court judge.

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This case arises from an application for confirmation of a foreclosure sale filed pursuant to OCGA § 44-14-161 by the Federal Deposit Insurance Corporation as receiver for Integrity Bank “FDIC” against REL and Associates, LLC, REL Properties, Inc., and Robert E. Lanier collectively “REL”. REL appeals the trial court’s final order confirming the sale in the amount of $2,945,000, challenging the trial court’s valuation of the property. Finding no error, we affirm. The record reveals that Integrity Bank for which the FDIC later became receiver under OCGA § 7-1-151 loaned REL $5,376,800 in exchange for a deed to secure debt, conveying to the Bank a first-priority security interest in a tract of land consisting of 263.08 acres of undeveloped real estate in Rockdale County, Georgia.1 REL defaulted on the loan, and the FDIC elected to declare the outstanding debt immediately due and payable. The FDIC thereafter foreclosed on the property under a power of sale provision in the deed to secure debt. On June 2, 2009, the property was sold at auction to the FDIC, the highest bidder, for $2,945,000.

The FDIC then filed the instant application for confirmation of the sale, asking the trial court to find that the property sold for true market value.2 After a hearing, the trial court confirmed the sale, finding that the true market value for the property was $2,630,000-$315,000 below the FDIC’s winning bid.

REL & Assocs. LLC v. Federal Deposit Ins. Corp.

The FDIC's report of the foreclosure sale met the statutory requirements of O.C.G.A. § 44-14-161 a, because the FDIC reported the sale, within 30 days of the foreclosure sale, to a judge, who was authorized by designation to sit as a superior court judge.

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