Foreclosure process in Alabama: steps, timeline, redemption

Is foreclosure judicial or not?

Both routes exist. The Code of Alabama sets out a non-judicial method for mortgages executed after December 31, 1988 (§§ 35-10-11 to 35-10-16). If the mortgage includes a power to sell, “the power is part of the security” and the lender, or whoever holds the debt, may exercise it (§ 35-10-12). A mortgage with no power of sale may be foreclosed either in a court or by a courthouse-door sale after notice (§ 35-10-3).

Check your own mortgage or deed of trust: whether it contains a power of sale decides which route applies.

Timeline step by step

The statute counts the notice in weekly publications, not days. Notice is by publication; I read no Alabama statute that requires personal notice to the borrower, so check what your mortgage contract promises.

Right of redemption

Alabama gives a statutory right to buy the home back after the sale. Those who may redeem include the debtor, the mortgagor, junior mortgagees, judgment creditors, spouses, and children, heirs or devisees (§ 6-5-248(a)). The window is 180 days for residential property on which a homestead exemption was claimed in the tax year of the sale, and one year for all other property (§ 6-5-248(b)).

To redeem, you must pay or tender the purchase price paid at the sale, with interest at the rate allowed on money judgments, plus other lawful charges such as taxes, insurance premiums and the value of permanent improvements (§§ 6-5-253, 6-5-254). You may demand an itemized statement; the buyer must provide it within 10 days (§ 6-5-252). The right “may not be waived in a deed of trust, judgment, or mortgage” before foreclosure (§ 6-5-250).

Deficiency judgments

If the sale does not pay the whole debt, the other property in the mortgage stays as security and may be foreclosed later (§ 35-10-15). The foreclosure sections I read neither bar nor cap a claim for the unpaid balance. Whether your lender can pursue you personally depends on your loan documents and a court’s decision, so ask an attorney before assuming the debt is gone. See real estate attorney in Alabama.

Help for homeowners in default

• Talk to your servicer early. Under federal rules, a servicer that receives a complete loss mitigation application at least 90 days before a scheduled sale means you may have a right to appeal a loan modification denial (CFPB). If you apply after the first notice but more than 37 days before the sale, the servicer generally cannot move for judgment or order of sale, or conduct the sale, until it decides on the application, with limited exceptions (12 CFR § 1024.41(g)).
• Call a HUD-approved housing counselor. HUD gives the toll-free number (800) 569-4287 and says counselors can explain options and negotiate with your lender. HUD warns against firms that promise to stop foreclosure at once and ask you to sign over authority.
• I found no Alabama Housing Finance Authority foreclosure-prevention program to list as current; check with a HUD-approved counselor.

If you buy at a foreclosure sale

The purchaser at the sale gets legal title from the foreclosure deed (§ 35-10-12), but the former owner’s redemption right can last up to a year. Order a title search and talk to a lawyer first, and read title insurance explained and seller disclosure. For local context, see Birmingham.