Thousands of Georgia foreclosures could be invalidated as a result of a decision by the Georgia Court of Appeals that adds new language to a foreclosure notice, Atlanta-based Ballard Spahr litigator Sarah T. Reise wrote in a report about the case.

The court ruled that when an agent or servicer of the secured creditor sends a notice of foreclosure to the borrower, the notice must identify the secured creditor, a requirement that Ms. Reise said isn't clearly spelled out in the current Georgia statute. The case in question involved a foreclosure notice that named the original lender, which had sold and transferred the note to another company but continued to service it on behalf of the new note holder. Failure to name the secured creditor invalidated the foreclosure, the court ruled.

Ms. Reise said that because the requirement that a notice of foreclosure identify the secured creditor “does not appear in the plain language of the statute,” the decision “likely will make thousands of foreclosures susceptible to challenge.”