Foreclosure in Alabama

Alabama foreclosures account for 19.1% of all home sales each month, with an average home value of around $93,000. The foreclosure process in Alabama is short and can be completed in less than 60 days. Alabama is a non-judicial foreclosure state. This means that a mortgage holder doesn’t have to take the homeowner to court to reclaim the home if the mortgage falls behind. The lender publishes a notice in a newspaper once a week for at least three consecutive weeks before the sale. However, Alabama law doesn’t specifically require that the lender send a notice to the borrower. Alabama has no definite statute of limitations as to when a lender must begin foreclosure proceedings. If you are behind with your mortgage payments, the lender can begin foreclosure proceedings at any time.

Steps in the foreclosure process:

• The lender chooses between judicial or non-judicial foreclosure (The vast majority of foreclosures are non-judicial).
• For judicial foreclosure, the lender files a lawsuit against the borrower in state court.
• For non-judicial foreclosure, the lender doesn’t need court authority.
• The lender publishes the foreclosure date in a local newspaper for at least three consecutive weeks before the sale.
• The lender may also send a letter to the borrower.

Should you find yourself in a foreclosure action Chapter 13 bankruptcy is a common option to stop a foreclosure in Alabama because it gives you a payment plan of 3 or 5 years to catch up on payments in arrears.

Ways to stop a foreclosure in Alabama:

• Reinstating the loan
• Filing for bankruptcy, usually Chapter 13
• Obtaining loss mitigation, usually a loan modification
• Redeeming the property before or after the sale
• Selling the house to a cash buyer
• Agreeing to a deed in lieu of foreclosure

You can also try to reach an agreement with the lender or loan servicer about a payment plan, temporary forbearance, or modification of the loan terms. A borrower can give up the right to redeem if they do not vacate the foreclosed property within 10 days of receiving a written request to do so.

What is the Right of Redemption?

The right of redemption in Alabama allows a former owner to repurchase their home after a foreclosure sale. The former owner must pay the purchase price plus other charges, such as interest, to redeem the property. The redemption period for homestead property is 180 days. The right of redemption also applies to other parties, such as owners and junior lienholders. If the homeowner doesn’t move out of the home within ten days after receiving a written demand for possession, they lose the right of redemption. The right of redemption allows homeowners to keep their homes if they pay back what they owe even after their lender starts the foreclosure process. For more information, call our offices for a free consultation with an experienced attorney1-877-581-3396

Time is of the Essence

The Alabama foreclosure process typically takes approximately 30 to 60 days so it is critical to contact a foreclosure defense specialist, like the attorneys at the Bond & Botes Law Offices to put a stop to the action and help you save your home. Call us for an absolutely free confidential consultation 1-877-581-3396 or email us through our website.