Supreme Court to hear superlien case - excess proceeds distribution rules to change again?

You may recall that previously Brad Hutchins and I prepared a video to let you know about the Court of Appeals decision in the DLT List, LLC v. M7ven Supportive Housing & Development Group case reversing the previously established rule that a creditor who redeems a non-judicial tax deed not only obtains a first priority lien against the property, but also has a perfected claim against all surplus funds generated by the tax sale. As a result of the Court of Appeals decision, the redeeming creditor still retains that first priority lien against the property, but no longer has a claim against the surplus funds for the amount expended in the redemption.

The redeeming creditor sought leave to further appeal the Court of Appeals decision to the Georgia Supreme Court back in December of last year. Finally last week the Georgia Supreme Court granted the application to hear the appeal. The Court’s full order can be found here. While the current state of the law remains that a redeeming creditor does not have a first priority claim to the surplus funds generated by a non-judicial tax sale, the Court of Appeals will hear argument from the parties as to whether that should continue to be the case in their January 2017 calendar. We will of course keep you apprised of any rulings which come out of the Supreme Court following those oral arguments.