Q: An observation. Note that the State of GA uses a Security Deed in lieu of a Deed of Trust or Mortgage document.
A: Research of several Georgia real estate related websites confirms that Georgia uses a “Deed to Secure Debt” or Security Deed” to secure real estate debt. Under Georgia law, the lender is deeded the property in conjunction with granting a real estate loan, but in a lesser form of a deed that becomes activated if the borrower defaults in some way. In the words of Georgia courts, "a security deed, although conveying the legal title, does so for the purpose of security only."
This description indicates that a Security Deed functions in a manner similar to that of a Deed of Trust. Like a Deed of Trust, the Security Deed allows a lender to access the underlying collateral more quickly following an event of default than does a mortgage. Foreclosures under a Security Deed in Georgia, like most other States, are by non-judicial process, whereas in mortgage lien States, the foreclosure process tends be through the court system.
Mortgages are also used in Georgia to secure real estate transactions, but rarely so.
Course overview: Commercial Real Estate Loan Documentation