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Alabama Foreclosure Laws |
Alabama Foreclosure Laws feature both Judicial as well as Non-Judicial foreclosure. The presence of Power of Sale clause makes the process non judicial where as its absence makes it judicial. In Alabama foreclosure laws, the primary security instrument is Deed of Trust that is mortgage. The whole process does not have specific timeline but Alabama foreclosure timeline varies with the process and generally takes 30-60 days.
In judicial foreclosure statutes, lawsuit is required to be filed before selling a home. Without court's order lender has no right to make any kind of sale. As Deed of Trust or mortgage contains the power of sale clause in non judicial foreclosure process, therefore lender can sell the property without much intervention of court. In this, borrower in the beginning of taking mortgage, gives right of sale to the lender in case of any default regarding payment of mortgage occurs.
Foreclosure Laws in Alabama
Now According to foreclosure laws in Alabama, the non judicial process can occur in two ways. In one case the whole process of AL foreclosure has been defined in clause like time, date and place will be specified. In other case just the clause is given without any specification. Now if the term of sale, date and place has been mentioned then foreclosure must be according to this only otherwise the foreclosure auction can take place at the front door of courthouse. The location should be in the same county where the property concerned is located.
Before making any kind of sale, notice of sale is required to be published according to Alabama foreclosure laws and this should come in the newspaper of county for four consecutive weeks. Further according to law if the property is situated in more than one county then notice of sale should come in the newspapers of all these counties. Furthermore the county where property is located has no newspaper the it should be published in the adjoining county.
Court foreclosures in Alabama are rare and on the other hand foreclosure out-of-court happens for most of the time. According to AL foreclosure law no notice of default is required to be sent to the borrower by lender but in certain cases it s needed. This notice of default is to be given 10-30 days before the process of foreclosure.
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According to foreclosure laws in Alabama the title of the property remains with trust till the whole mortgage loan has been given by the borrower. In Alabama one can get deficiency judgment in case the amount at which the property is foreclosed is less than total loan amount. |
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