Alabama allows for both the judicial (in court) and non-judicial (out-of-court) foreclosure process, although judicial foreclosures are not common in the state. The typical foreclosure process takes approximately 2-3 months.
|Judicial||Non Judicial||Comment||Process Period||Publish Sale||Redemption Period||Sale/NTS|
|•||•||Judicial rarely||49-74 days||21 days||365 days||Trustee|
Judicial foreclosures are rare in Alabama, occurring only when there are either problems concerning title to the property, or when the mortgage lacks a provision giving the lender the right to sell the property if the borrower defaults.
The most common foreclosures in Alabama are non-judicial in nature. The foreclosure process is initiated once the foreclosing lender supplies its attorney with the appropriate documentation and the attorney schedules the sale of the property.
Although not required by state law, some mortgages require the lender to send a Notice of Default (NOD) to the borrower 10-30 days before initiating the foreclosure process.
Unless the mortgage states otherwise, the borrower has a right to pay off the debt at any time and stop the foreclosure process until the day of the foreclosure sale.
When foreclosing, the lender must follow any notice of sale requirements specified in the mortgage. The notice of sale is either published for three weeks in a newspaper, or posted at the courthouse door and three other public places. The notice must provide a description of the property, as well as the day, place, and terms of the sale. Usually, the notice is also sent to the borrower, although it is not required unless dictated in the mortgage.
If a borrower has other mortgage loans, those lenders typically receive notice as well. The sale takes place at the courthouse specified. After the foreclosure sale, and upon payment, a deed is given to the winning bidder.
However, even after the property has been sold at auction, the original borrower has the right to redeem the property for up to one year after the foreclosure sale date.