State Information - Overview.
Judicial and Non-Judicial Foreclosures are permitted. Typically, Non-Judicial actions are taken and can be processed within approximately 49-74 days. There is a statutory "Right of Redemption" in Alabama that last 365 days from the date of the foreclosure sale. Let us help you understand your options when dealing with redemption.
Foreclosures Occur in One of Three ways.
1. by filing a lawsuit to foreclosure;
2. 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
3. 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 - 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.
Procedure of Foreclosure with "Power of Sale."
Document Specified:
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 - Not Specified in Documents or Contract:
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 country 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.
Procedure of Foreclosure without "Power of Sale."
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.
Right of 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 bought 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 the legitimate charges to the purchaser. If necessary, the borrower can sue in the circuit court to redeem the property.
