Foreclosure Process in Alabama (AL)

Please review the following foreclosure procedure carefully. There are many options available to you no matter your situation. Please click here to view a list of our solutions. You may refer to the glossary of foreclosure terms at any time by clicking here.

This general information is not to be considered legal advice. We recommend consulting with a lawyer for legal advice specific to your situation.

How long does foreclosure take: Varies, 30 to 60 Days

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Alabama allows foreclosure 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.
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 Foreclosure

Preliminary Notices

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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 4 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.

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 1 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 legitimate charges to the purchaser. If necessary, the borrower can sue in the circuit court to redeem the property.

Obtaining Legal Advice

Since foreclosure is a legal process, it would be wise to seek the advice from an attorney in your area who can answer any questions that you have, and who can inform you of your rights in the foreclosure process.