Outlining the Foreclosure Process in Alabama
You have worked hard for everything that you have. Through your efforts, you were able to purchase a home. Though you may have done everything you could have to prevent one of your most valuable assets from being lost, sometimes the unfortunate happens. To put yourself in the best position possible today, it can be helpful to understand the foreclosure process in Alabama, as well as the related timelines.
Basics of Foreclosure Process in Alabama
Foreclosure is the process in which a lender receives possession of property that belonged to the borrower in the event the borrower stops making payments on their property. Because this process can be complicated it is important to know what the process is and the timeline that you are afforded. Typically, the Alabama foreclosure process takes approximately 30 to 60 days.
Two Types of Foreclosures
- Non-judicial foreclosure: The non-judicial foreclosure is used when there is a power of sale clause within the contract which allows the lender to sell the property upon default.
- Judicial foreclosure: A judicial foreclosure involves filing a civil suit to obtain a court order in order to foreclose on the property. If the foreclosure proceeding involves the court, the property is sold as part of a public notice by the sheriff, and a complaint is filed extending the 30 to 60-days process to a 60 to 90-days.
- In Alabama, there is a statutory right of redemption which allows a borrower who has the property that has been foreclosed on to reclaim their property by making payment in full, plus costs, if it is paid within 12 months after the sale of the property. Also, Alabama allows deficiency judgments.
Contact an Attorney in Birmingham, AL
Familiarizing yourself with the foreclosure process in Alabama and the associated timelines can help you better understand next steps, as well as your rights to redeem your property after meeting certain criteria. The best foreclosure legal advice is dependent upon the specifics of your case, so contact the Massey, Stotser, & Nichols, PC team to get started.