Get a Fast and FREE Consultation!
Fill out the form NOW!
"The median monthly payment reduction for borrowers enrolled in
the (HAMP) program is $522" - DSnews.com
Alabama Foreclosure Law
The state of Alabama's foreclosure laws allow for both judicial and non-judicial foreclosures. The process will be determined on whether or not there is a Power of Sale clause in the mortgage or deed of trust. The typical time line for foreclosures in the state of Alabama range from 30 to 60 days or longer if there is a judicial foreclosure.
Judicial Foreclosure
The Judicial Foreclosure process is used when the mortgage or deed of trust does not include a Power of Sale clause. In a judicial foreclosure, the lender files a lawsuit and obtains a court order allowing them to foreclose on the property. The court must reside in the same county as the property that is being foreclosed upon. Once the foreclosure is granted an auction will be announced and the home will be sold to the highest bidder.
Non-Judicial Foreclosure
If the mortgage or deed of trust contains a Power of Sale the lender may foreclose without going to court. The right to sell the property may be practiced by a trustee, or a representative of the lender. Typically, the process will follow the Power of Sale which will include the date, time, place and procedure of the auction process.
If these details aren't mentioned in the clause the foreclosure will proceed as follows:
First, the lender or trustee records a Notice of Sale in the county office where the borrower's home is located. The company is them given 5 days to send a copy of the notice of sale by certified mail to the borrower and any other parties involved. The notice is also published in a county newspaper at lease once a week for 4 consecutive weeks. The last notice should be published at least 10 days before the sale date.
Provided it doesn't disturb the peace, lenders can also post the notice on the property and the courthouse where the sale date is scheduled. The has to be done at least 20 days ahead of the specified auction date.
The lender can then sell the home for cash to the highest bidder, or set a "credit bid" wherein part or all of the money owed is canceled. Once the sale is confirmed, the buyer must make the payment by 5 pm of the same day, except on Saturdays and legal holidays. Otherwise, the lender can extend the deadline or postpone the sale. If they choose the latter, they have to post a notice specifying the new date at the venue of the last auction. The proceeds of the sale will be used to pay off the obligations of the loan, and distributed among the junior lien holders.