What are the foreclosure laws in Alabama?
The laws for foreclosure in Alabama can be confusing.
Summary:
| Judicial Foreclosure | Yes |
| Non-Judicial Foreclosure | Yes |
| Security Instruments | Deed of Trust, Mortgage |
| Right of Redemption | Yes |
| Deficiency Judgments | Yes |
| Time Frame | 30-60 days |
Judicial foreclosure: In the absence of a power of sale clause in the loan document, a lender may sue the borrower to obtain a court order to foreclose and sell the property. However, in Alabama, a lender may, even in the absence of power of sale, publish a notice of sale for four consecutive weeks in a newspaper published in the county, and then sell the property at the door of the courthouse of the county in which the property is located.
Non-judicial foreclosure is pursued when a power of sale clause is present in the loan document. If the clause contains instructions as to the time, place, and terms of sale, that procedure must be followed. If not, a notice of sale must be published weekly for four consecutive weeks in a newspaper published in the county in which the property is located. If no newspaper is published in the subject county, the notice shall be published in a newspaper in an adjoining county.
The sale may not be held until 30 days from the last date of publication, and shall be held between the hours of 11:00 AM and 4:00 PM at the courthouse door as a public auction for cash to the highest bidder.
Right of redemption: The owner has 12 months in which to redeem the property. Deficiency judgments are permitted.
