Alabama

For homeowners facing foreclosure in Alabama, the following is a summary of the state’s foreclosure laws:

Judicial Foreclosure

Foreclosures in Alabama can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.

Nonjudicial Foreclosure

Foreclosures in Alabama can also be nonjudicial, but a court must confirm the sale.

Foreclosure Notification

During the foreclosure process, the bank must publish a newspaper notice once a week for three weeks prior to the sale of the property. Most Alabama mortgages require that the homeowner be notified prior to the publication of the notice.

Reinstatement and Redemption

The mortgage cannot be reinstated during the foreclosure process unless specified in the terms of mortgage contract. However, the property can be redeemed or repurchased by the homeowner for up to 180 days after a notice of redemption is sent by the bank or up to two years after the foreclosure sale if a notice is not sent. Redemption rights can be lost if the homeowner does not vacate the house within ten days of receiving a demand for possession by the new homeowner.

Alabama Protections for Service Members

Alabama law provides protections in accordance with the federal Service Members Civil Relief Act.

In Alabama, the estate or spouse of a service member killed in combat has the right to delay foreclosure proceedings for up to 180 days if the mortgage was taken out after August 1, 2009. The estate must notify the lender and request a delay.

Deficiency Law

Alabama allows banks the right to seek a deficiency judgement from the court against the homeowner if the outstanding mortgage debt surpasses the foreclosure sale price.

Eviction Notice

The state requires a ten-day written notification following the foreclosure sale before the eviction process can begin.

For information regarding how to avoid foreclosure in Alabama, visit HUD.gov.

Alabama

For homeowners facing foreclosure in Alabama, the following is a summary of the state’s foreclosure laws:

Judicial Foreclosure

Foreclosures in Alabama can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.

Nonjudicial Foreclosure

Foreclosures in Alabama can also be nonjudicial, but a court must confirm the sale.

Foreclosure Notification

During the foreclosure process, the bank must publish a newspaper notice once a week for three weeks prior to the sale of the property. Most Alabama mortgages require that the homeowner be notified prior to the publication of the notice.

Reinstatement and Redemption

The mortgage cannot be reinstated during the foreclosure process unless specified in the terms of mortgage contract. However, the property can be redeemed or repurchased by the homeowner for up to 180 days after a notice of redemption is sent by the bank or up to two years after the foreclosure sale if a notice is not sent. Redemption rights can be lost if the homeowner does not vacate the house within ten days of receiving a demand for possession by the new homeowner.

Alabama Protections for Service Members

Alabama law provides protections in accordance with the federal Service Members Civil Relief Act.

In Alabama, the estate or spouse of a service member killed in combat has the right to delay foreclosure proceedings for up to 180 days if the mortgage was taken out after August 1, 2009. The estate must notify the lender and request a delay.

Deficiency Law

Alabama allows banks the right to seek a deficiency judgement from the court against the homeowner if the outstanding mortgage debt surpasses the foreclosure sale price.

Eviction Notice

The state requires a ten-day written notification following the foreclosure sale before the eviction process can begin.

For information regarding how to avoid foreclosure in Alabama, visit HUD.gov.

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