Stop Foreclosure in Alabama

 


I. How to Stop Foreclosure in Alabama

Mortgages can be done out of court in the state of Alabama. This is termed as having the power of sale clause. This is done by an attorney and is a non-judicial foreclosure method whenever default occurs. Fortunately, residents and homeowners in the state have a few alternatives so as to avoid getting their houses foreclosed.

The Things You Will Need:

Your original mortgage papers

  • Step 1Contact your mortgage company; it is never too late to call your mortgage company no matter how late delayed you are. They are always willing to help since they also will lose money every time they foreclose a house; thus they certainly would like to work with homeowners to avoid this. Just be honest about your situation and inquire about the alternatives that are open to you.
  • Step 2Always be available. Your mortgage company will usually contact you via mail meaning not opening these letters will mean no correspondence between you and the company. This is specially important since they will sometimes mail you about assistance options. Keep in mind that in the state of Alabama, court proceedings are not required to foreclose a home making them faster. They will also need a shorter time span to totally foreclose your home so make sure you are corresponding well with your mortgage company.
  • Step 3Be Educated. Find your original copy of the mortgage and study it well. Know your rights and use them well. If you need an attorney or any other professional help to discuss these with, contact them at once.
  • Step 4Prioritize your finances. Pay your mortgages first and fore-go other unnecessary bills such as cell phones, eating out, memberships, and cable television. Until your mortgage is up to date, delay you other payment options as long as you can. Even if these things are also regular expenses, cable payments will not give you your house back.
  • Step 5Get extra means of income. Sell other assets such as life insurances, jewelry, or extra cars if needed. Use the money from these to settle your mortgage. And even if a second job is not enough to make ends meet; the fact that you are looking for one or have already gotten one will prove to your mortgage company that you are serious in paying your mortgage and will do anything just to keep your house.
  • Step 6Read the newspaper. When the attorney files a notice of sale for a house, the company is expected to publish a foreclosure sale notice in the newspapers for three weeks. If there is none available, they may opt to use a newspaper from the nearby county.

Tips & Warnings

  • Even though filing for bankruptcy will stop foreclosure, it must only be done as a last resort.
  • Do not pay third party people to stop your foreclosure and never sign any paper works except from those that come from your mortgage company. A lot of people have been tricked to sign over their homes to somebody else because of this.

II. Synopsis of Alabama Foreclosure Laws

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 assignees 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.

III. Where to go to for Foreclosure Help

CINDY YARBROUGH

Field Office Director
Birmingham Field Office
950 22nd St North
Suite. 900
Birmingham, AL 35203-5302

Tel: (205) 731-2617
Fax: (205) 731-2593
Email: AL_Webmanager@hud.gov

IV. Stop Foreclosure Early

First Mortgage Group
205-664-8488 ext 1006
160 Yeager parkway Suite 201
Pelham, AL

Sons Capital
205-473-9413
P.O. Box 1855
Pell City, AL

WR Starkey Mortgage, LLP – Chris McDonald
334-332-5252
1912 Opelika Rd
Phenix City, AL

Regions Bank – Loxley
251-964-7474
2095 East Relhem Drive
Loxley, AL

Wells Fargo – Uab
205-226-0904
316 18Th St S
Birmingham, AL

Countrywide Home Loans
334-663-3902
1530 E Glenn Ave Suite E
Auburn, AL

Network Funding LP – Reverse Mortgage Division
205-908-2993
200 Cahaba Park Circle Suite 116
Birmingham, AL

Colonial Bank Mortgage
334-358-5914
1798 Highway 14 East
Prattville, AL

HomeTown Lenders – AUBURN
770-757-6481
724 N. Dean Road
Auburn, AL

Wells Fargo – Pinson
205-680-8220
4394 Main St
Pinson, AL

Adas Mortgage Group
(251) 633-8434
1535 Schillinger Rd S Ste G
Mobile, AL

Wells Fargo – Dalraida
334-270-2320
3949 Atlanta Hwy
Montgomery, AL
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ACA Financial Services
(334) 393-8492
414 S Main St
Enterprise, AL