What is a security deed?
Georgia is a unique state in the union in how it deals with its real estate. In Georgia when you borrow money to buy a home or another piece of real estate, you do not sign a mortgage as in most states. In Georgia you sign a security deed. It essentially is a mortgage. Every time you borrow money with real estate as collateral from a lending institution or an individual you will sign one. At a closing the seller will sign a deed over to you. You, as the buyer, will sign a security deed to the lender. The deed transfers title to you. The security deed is a document that pledges the property back to the lender in the event that you cannot meet the financial obligation you agreed to in the promissory note. The reason you sign a security deed and not a mortgage is in the method of which the property is returned to the lender. Georgia is the only state in the union which to my knowledge is still a nonjudicial foreclosure state. The security deed declares that should you not meet your financ
Georgia is a unique state in the union in how it deals with its real estate. In Georgia when you borrow money to buy a home or another piece of real estate, you do not sign a mortgage as in most states. In Georgia you sign a security deed. It essentially is a mortgage. Every time you borrow money with real estate as collateral from a lending institution or an individual you will sign one. At a closing the seller will sign a deed over to you. You, as the buyer, will sign a security deed to the lender. The deed transfers title to you. The security deed is a document that pledges the property back to the lender in the event that you cannot meet the financial obligation you agreed to in the promissory note. The reason you sign a security deed and not a mortgage is in the method of which the property is returned to the lender. Georgia is the only state in the union which to my knowledge is still a nonjudicial foreclosure state.
