Alabama Foreclosure
Law Summary
Quick Facts
- Judicial Foreclosure
Available:
Yes
- Non-Judicial
Foreclosure Available: Yes
- Primary Security
Instruments: Deed of Trust, Mortgage
- Timeline: Varies
by Process; Typically 30 - 60 days
- Right of Redemption:
12 months
- Deficiency Judgments
Allowed:
Yes
In Alabama, lenders may
foreclose on deeds of trusts or mortgages in
default using either a judicial or
non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of
foreclosure, which involves filing a lawsuit
to obtain a court order to foreclose, is
used when no power of sale is present in the
mortgage or deed of trust. However, when no
power of sale is present, lenders may, at
their option, choose to forego a lawsuit and
foreclose by selling the property, as
outlined below in the "No Power of Sale
Foreclosure Guidelines".
Non-Judicial
Foreclosure
The non-judicial process of
foreclosure is used when a power of sale
clause exists in a mortgage or deed of
trust. A "power of sale" clause is the
clause in a deed of trust or mortgage, in
which the borrower pre-authorizes the sale
of property to pay off the balance on a loan
in the event of the their default. In deeds
of trust or mortgages where a power of sale
exists, the power given to the lender to
sell the property may be executed by the
lender or their representative. Regulations
for this type of foreclosure process are
outlined below in the "Power of Sale
Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or
mortgage contains a power of sale clause and
specifies the time, place and terms of sale,
then the specified procedure must be
followed. However, if the deed of trust or
mortgage contains a power of sale clause,
but does not specify the time, place and
terms of sale, then a foreclosure sale may
take place at the front or main door of the
courthouse of the county where the property
located, after default of the deed of trust
or mortgage, for cash to the highest bidder.
The sale may not take place until thirty
(30) days after the last notice of sale is
published.
Said notice of sale must be given by
publication once a week for four (4)
successive weeks in a newspaper published in
the county or counties in which the property
is located. If the property is under
mortgage in more than one county, the
publication is to be made in all counties
where it is located. The notice of sale must
give the time, place and terms of said sale,
together with a description of the property.
If no newspaper is published in the county
where the lands are located, the notice
shall be placed in a newspaper published in
an adjoining county for four (4) successive
weeks.
No Power of Sale Foreclosure Guidelines
If no power of sale is
contained in a mortgage or deed of trust,
the lender, or any assignee thereof, may,
after default of the mortgage or deed of
trust, either file a lawsuit to foreclose or
foreclose by selling the property to the
highest bidder for cash at the
courthouse door of the
county where the property is situated. Said
sale may not take place until after notice
of the time, place, terms and purpose of the
sale has been published for four (4)
consecutive weeks in a newspaper published
in the county wherein said lands, or a
portion thereof are situated.
More information on Alabama foreclosure laws.
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