Alabama Foreclosure Law
Alabama foreclosures occur both in court and out-of-court.
The typical foreclosure process takes 2-3 months.
Pre-foreclosure Period
In Alabama, court foreclosures are rare, occurring only when
there are title problems or when the mortgage lacks a provision
giving the lender the right to sell the property if the borrower
defaults. Out-of-court foreclosure proceedings are most commonly
used. The process begins once a lender supplies the attorney
with the applicable documents and the attorney schedules a sale
of the property.
Although not required by state law, some mortgages require
the lender to send a notice of default to the borrower 10-30
days before initiating the foreclosure process.
Unless the mortgage states otherwise, the borrower has a
right to pay off the debt at any time and stop the foreclosure
process until the day of the foreclosure sale.
Notice of Sale / Auction
A lender must follow any notice of sale requirements that are
specified in a mortgage. The notice of sale is published for
three weeks in a newspaper or posted at the courthouse door and
three other public places. The notice must provide a description
of the property and the day, place, and terms of the sale.
Usually, the notice is also sent to the borrower, although it is
not required unless dictated in the mortgage. If a borrower has
other mortgage loans, those lenders typically receive notice as
well. The sale takes place at the courthouse. After the
foreclosure sale and upon payment of the sale price, a deed is
given to the winning bidder.
The borrower has the right to redeem the property after the
foreclosure sale, up to one year after the foreclosure sale
date.
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