Alabama Foreclosure Help – Stop Foreclosure in Alabama


Finding Foreclosure Help in Alabama

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America.

There is no need to pay a private company for these services.

Field Office Director

Birmingham Field Office
950 22nd St North
Suite. 900

Birmingham, AL 35203-5302

Tel: (205) 731-2617
Fax (205) 731-2593

Alabama Foreclosure Laws

  • The judicial foreclosure type is available.
  • The non-judicial foreclosure type is available.
  • Deeds of trusts and mortgages are the primary security instruments.
  • The timeline can vary by process, which typically takes 30-60 days.
  • The borrower’s right of redemption period is 12 months.
  • The lender may sue for deficiency judgements.

Lenders in Alabama may foreclose on mortgages through a judicial or non-judicial foreclosure process.

Judicial foreclosure
The judicial foreclosure is done by filing a suit to obtain a court order to foreclose. This is used when there is no power of sale clause stated in a mortgage or deed of trust. Another way of doing this is by selling the property directly, but the regulations stated in the “No Power of Sale Foreclosure Guidelines”must be followed.

Non-Judicial Foreclosure
The non-judicial foreclosure process is used when a power of sale clause is present in a mortgage deal. This just means that the borrower has pre-authorized the sale of the property to pay off any debts in the event of their default. The lender or a representative may sell the property at an auction following the “Power of Sale Foreclosure Guidelines.”

Power of Sale Foreclosure Guidelines
If the power of sale clause specifies the terms of the sale, this must be followed. If not, the sale should be done following the process stated below.

A notice of sale must be published in the county newspaper where the property is located or in the next nearest county if there are none available in the said county. It must appear in the newspaper once a week for four consecutive weeks, and contain information such as the time, place, terms of sale as well as a description of the property being sold. The sale must take place in front of the county courthouse and sold to the highest bidder for cash. The sale can only take place 30 days after the last notice of sale was published.

No Power of Sale Foreclosure Guidelines
The lender may file a lawsuit to foreclose if there is no power of sale clause present in a mortgage deal. He may also choose to sell it in front of the courthouse of the county where the property is located. This can only be done after publishing an ad in the county newspaper stating the time, date and terms of sale of the property for four consecutive weeks.