Alabama Foreclosure Laws

Alabama foreclosure laws include both judicial and non-judicial foreclosure processes. Most foreclosures in the state take between two and three months. However, in Alabama, non-judicial foreclosures are the most common. Usually, the parties involved in a foreclosure only seek court intervention when there is an unusual clause in the mortgage that prevents the lender from the selling the property in the event of a default.

A judicial foreclosure can also be sought if there is a title problem with a property. If a non-judicial foreclosure is sought, the lender's attorney will gather the needed documents related to the case and will schedule a sale of the property.

Pre-Foreclosure

Some mortgages in Alabama require the lender to file a notice of default and send this notice to the homeowner. In most cases, this notice must be filed 10-30 days before the foreclosure process is started. However, notice of default is not usually required by Alabama law and is only an issue in some specific mortgage clauses.

In most cases, the mortgage terms allow the homeowner to pay off the arrears of the loan and thereby stop the foreclosure process. Usually, the homeowner is allowed to take this step right up to the day of the foreclosure sale. However, specific mortgage terms and clauses will dictate how long the homeowner has a right to stop the foreclosure process. Mortgage terms and clauses vary widely, and lenders are responsible for following the requirements of sale that are outlined in a mortgage, even when those terms are not the norm according to Alabama foreclosure laws.

The Foreclosure Sale

Alabama foreclosure laws require a notice of sale to be posed at a courthouse or published for three weeks before a foreclosure sale. By law, this notice of sale must include details such as the terms of the sale, the day and place of the sale and a description of the property. In most cases, the notice of sale is also sent to the homeowner, although mortgage clauses may not indicate this is necessary. If a homeowner has more than one mortgage, other lenders working with the homeowner may also received information about the foreclosure sale. In Alabama, the foreclosure sale is at the courthouse and the highest bidder on a property wins the deed to the property after paying the sale price. By Alabama law, the homeowner can redeem the property up to one year after the foreclosure sale.