 Alabama Loan Modification Guidelines
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have
outlined the foreclosure process for the state of Alabama.
Judicial Foreclosure Available: Yes
Non judicial Foreclosure Available: Yes
Alabama loan modification program allows foreclosure in one of three ways:
1. by filing a lawsuit to foreclosure
2. by a foreclosure sale conducted in accordance with the terms specified
under a power of sale clause in the deed of trust or mortgage, or
3. if there is no power of sale clause, then by a public sale at the courthouse
steps.
Foreclosure by filing a lawsuit seeking a court order to foreclose is
not common. Methods two and three are more commonly used.
Power of Sale Foreclosure
Preliminary Notices
Advertising
The sale may not take place until 30 days after publishing an advance
notice of the time, place and terms of the sale once a week for four consecutive
weeks. The notice must be published in the county in which the property
is located.
Sale Procedures
Documents May Specify Procedures
If the mortgage or deed of trust contains a power of sale clause and specifies
the time, place and manner of the foreclosure sale, then that procedure
must be followed.
Statutory Procedure
However, if the mortgage or deed of trust with a power of sale clause
is silent as to the place of terms of the sale, or as to the type of notice
of the sale, then a foreclosure sale may be made at the courthouse door
of the county where the property is located, after a breach of the conditions
or requirements of the mortgage, or deed of trust, by selling for cash
to the highest bidder. However, in the case of a sale under a mortgagee
or deed of trust with a power of sale clause, a foreclosure deed conveys
the title.
Foreclosure Without a Power of Sale Clause
If the mortgage or deed of trust lacks a power of sale clause and the
lender chooses not to file a lawsuit to foreclose, then the lender may
foreclose by selling the property for cash to the highest bidder at the
courthouse door in the county where the property is located. Advance notice
of the time, place, terms and purpose of the sale must be given by publishing
an ad once a week for four consecutive weeks in a newspaper in the county
where the property is located.
Deficiency
The lender may sue to foreclose the mortgage without filing a suit to
obtain a deficiency judgment. Alternatively, the lender may sue to foreclose,
and then sue for any resulting deficiency. It is the lender's choice.
Redemption
The borrower has a right to redeem within one year after the foreclosure.
Anyone who wants to redeem should obtain a statement of the price paid
for the property at the foreclosure sale from whoever brought the property
at the foreclosure sale. The borrower can then redeem the property by paying
the purchase price, taxes, insurance, improvements and ten percent interests
on the price and all other legitimate charges to the purchaser. If necessary,
the borrower can sue in the circuit court to redeem the property. 
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