Alabama Foreclosure Laws

Alabama foreclosures can be both judicial and non-judicial in nature and a normal foreclosure proceeding takes around 3 months.

According to the Alabama foreclosure law, the power to sell real estate, land or home is provided to a grantee as a part of a mortgage to enhance the payment of money in lieu of. The law has been made to provide security and it can be executed by anyone who is entitled to receiving the money that is secured. In such cases, the probate judge has the power to index the foreclosure deeds in the name of original grantee in the mortgage.

The Alabama foreclosures law also states that in a case where the deed of trust accompanied with the power of sale is silent in terms of place, sale, or character then the sale can be taken to the court in the county which represents the land. This can happen after the highest bidder is chosen and a 30 days' notice in terms of place, time and conditions of sale is published. This notice is published once every week for 4 consecutive weeks in the local newspaper.

Applicable Alabama foreclosure law in the absence of power of sale

According to the Alabama foreclosure law, if there is no power of sale is mentioned in the deed of trust or in the mortgage papers then the grantee assigned can foreclose the real estate or property in a court that can exercise jurisdiction in this matter. The grantee can go ahead with the foreclosure and sell it to the highest bidder. The grantee can do this after taking out a notice specifying the time, place, and terms of the sale. This will be published in the local daily for 4 consecutive weeks.

In a continuing power of sale, additional satisfaction will be permitted

If a property is under the power of sale then it will act as a foreclosure. The condition is that it can be sold only if the homeowner is unable to satisfy the mortgage indebtedness in full. Any other property mentioned in the mortgage will be used as a security till the mortgage debt is paid of and if unpaid, it will lead to foreclosure of that mortgage using the power of sale condition. The power of sale mentioned in the mortgage deed can be executed unless specified otherwise and it will provide a continuing power of sale, which will authorize the mortgagee and his assignee to sell the property mentioned in the mortgage in separate parts or according to his possession.

Procedure for notice of sale in a Alabama Foreclosure

A foreclosure cannot take place without a notice. Hence a notice containing the relevant information of the sale will be taken out. The notice will contain information in accordance to the deed of trust or mortgage and should include all the important rules applicable in the county of the mortgagor's residence. If the mortgagor is from a different county then the notice will be taken out in the county under in which the land is located. It is important to understand that the notices for all the sales taking place under the powers of sale can be executed only after July 1, 1936. If the amount to be secured is more than or equal to $500.00 then the notice has to be published once a week for 3 consecutive weeks in the local newspaper. The notice of sale should contain all the information related to the time, place, terms of sale and the description of the property to be sold.

If you need more information about Alabama foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.

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