Alabama Foreclosure Laws

Foreclosure Laws in Alabama

Alabama foreclosure laws provides for both judicial foreclosures and non judicial foreclosures. Typically, the entire foreclosure process takes anywhere from two or three months to complete.

For the most part, court foreclosures are rare in Alabama, as most mortgages carry a Power of Sale clause, which allows a lender to pursue a foreclosure without obtaining a court order. Judicial proceedings are necessary when no such clause exists in the mortgage, or when title problems exist complicating the issue. This process involves filing a suit in court and moving forward with a sale according to the procedure the court dictates.

To begin a non-judicial foreclosure, the lender usually consults an attorney with the details of the default, and the attorney goes ahead to schedule a date for the foreclosure sale of the property in question. Though it is not required by law, most lenders supply the homeowner with a Notice of Default anywhere from 10 to 30 days before beginning foreclosure proceedings. This Notice instructs them to seek foreclosures help or pay off the default debt to avoid foreclosures. If the homeowner does not respond, the sale goes forward as planned.

The homeowner can still halt the process and avoid a sale by paying off the entire amount of the loan debt at any point up until the day of the sale.

The lender must be sure to follow any instructions in the mortgage for publicizing as Notice of Sale before the auction can take place, which usually includes publishing the notice in a newspaper for three consecutive weeks leading up to the sale. It is also usually required that the Notice be posted in at least three public places, and that the homeowner receive a copy of it as well. The Notice contains key details about the sale, including its time, date and location.

Most foreclosure sales take place at the county courthouse. Once a winning bidder has been established and payment for the property has been procured, the winner is issued a deed to the property and the sale concludes.

The original homeowner can win back their Alabama foreclosure homes during a one year period of redemption following the conclusion of the sale by paying off the full amount of the winning bid, as well as any additional costs or interest accrued.