Alabama
When
you develop a definite plan of action with
well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We
have outlined the foreclosure process for the
state of Alabama.
Judicial Foreclosure Available: Yes
Non judicial Foreclosure Available: Yes
Alabama allows foreclosure in one of three ways:
by filing a lawsuit to foreclosure
by a foreclosure sale conducted in accordance
with the terms specified under a power of sale
clause in the deed of trust or mortgage, or
if there is no power of sale clause, then by a
public sale at the courthouse steps.
Foreclosure by filing a lawsuit seeking a court
order to foreclose is not common. Methods two
and three are more commonly used.
Power of Sale Foreclosure
Preliminary Notices
Advertising
The sale may not take place until 30 days after
publishing an advance notice of the time, place
and terms of the sale once a week for four
consecutive weeks. The notice must be published
in the county in which the property is located.
Sale Procedures
Documents May Specify Procedures
If the mortgage or deed of trust contains a
power of sale clause and specifies the time,
place and manner of the foreclosure sale, then
that procedure must be followed.
Statutory Procedure
However, if the mortgage or deed of trust with a
power of sale clause is silent as to the place
of terms of the sale, or as to the type of
notice of the sale, then a foreclosure sale may
be made at the courthouse door of the county
where the property is located, after a breach of
the conditions or requirements of the mortgage,
or deed of trust, by selling for cash to the
highest bidder. However, in the case of a sale
under a mortgagee or deed of trust with a power
of sale clause, a foreclosure deed conveys the
title.
Foreclosure Without a Power of Sale Clause
If the mortgage or deed of trust lacks a power
of sale clause and the lender chooses not to
file a lawsuit to foreclose, then the lender may
foreclose by selling the property for cash to
the highest bidder at the courthouse door in the
county where the property is located. Advance
notice of the time, place, terms and purpose of
the sale must be given by publishing an ad once
a week for four consecutive weeks in a newspaper
in the county where the property is located.
Deficiency
The lender may sue to foreclose the mortgage
without filing a suit to obtain a deficiency
judgment. Alternatively, the lender may sue to
foreclose, and then sue for any resulting
deficiency. It is the lender’s choice.
Redemption
The borrower has a right to redeem within one
year after the foreclosure. Anyone who wants to
redeem should obtain a statement of the price
paid for the property at the foreclosure sale
from whoever brought the property at the
foreclosure sale. The borrower can then redeem
the property by paying the purchase price,
taxes, insurance, improvements and ten percent
interests on the price and all other legitimate
charges to the purchaser. If necessary, the
borrower can sue in the circuit court to redeem
the property.
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