Summary: The State of Alabama allows for non-judicial and judicial foreclosures which can take as little as 30 days. Even when the power of sale clause is not present in a deed of trust or mortgage, the lender can still proceed with the sale of the house without going through the court system as long as they sell the property and follow procedure. The borrower has 12 months after the sale to redeem the property in Alabama and the lender may proceed with a deficiency judgment against the borrower for any outstanding monies or costs due after the sale.

The foreclosure process moves quickly in the State of Alabama, which is why it is important for anyone owning property in this state to understand the foreclosure process and be abreast of the foreclosure laws. Both judicial and non judicial foreclosures are permitted under Alabama foreclosure law, even if the Power of Sale is not contained in the security instrument which is the deed of trust or mortgage. Some foreclosures in Alabama can take as little as 1 month.

If the lender wants to proceed with a lawsuit, they have to file suit against the borrower at the courthouse in the county where the property is located. This is only allowed if there is no Power of Sale clause contained in the security instrument. Many lenders will not go through this process to get a court order to foreclose as they have the option to proceed with the sale even without the court order if they choose to do a No Power Of Sale Foreclosure that gives the lender the right to proceed with a sale without going through the court system.

Because of the options available to the lender, most foreclosures in the state of Alabama are non-judicial foreclosures. The lender can invoke the Power of Sale clause, if it is present in the security instrument or they can proceed with the “No Power Of Sale Foreclosure” as allowed by Alabama law.

This type of non-judicial foreclosure occurs when there is a Power of Sale clause in the mortgage or deed of trust. It requires that the lender post notice of the sale at the courthouse as well as published newspapers in the county. The borrower must also be given notification of the sale and this must take place 30 days before the sale commences at the courthouse door. If there is no newspaper in the county, notice must be published in newspapers of the adjoining counties for four weeks prior to the sale. The property can then be auctioned off to the highest bidder.

Alabama is one of the only states that allows for a no power of sale non-judicial foreclosure. If the borrower defaults on their mortgage, the lender can skip the lawsuit and proceed with the same guidelines as issued in the Power of Sale foreclosure and sell the property at the courthouse after publishing notice of sale for four weeks prior to the date of the sale. In many cases, borrowers in Alabama can find themselves foreclosed on in as little as 30 days after they have skipped a mortgage payment.

Borrowers have 12 months after the foreclosure to redeem their property by paying back the loan plus any interest and fees due. In the State of Alabama, the lender can also seek a deficiency judgment if the amount due to the lender is greater than the sale of the property during foreclosure

No need to say that if you own property in the State of Alabama that is in danger of being foreclosed upon, you have to act quickly to stop foreclosure from happening to you. The sooner the better as the lender is not required to go to court, but must merely publish a notice of intent to sell in the local newspaper. You can stop foreclosure in Alabama by seeking foreclosure help from loss mitigation agencies. Loss mitigation firms can help you save your home from foreclosure in several different ways.

If you feel that your property is going to go into foreclosure, you should seek a free foreclosure evaluation from loss mitigation companies that can explain to you the law as well as your options. They can, in some cases, stop foreclosure by helping you with a short sale. In this case, the property is sold at an amount that is agreeable to the lender and you get to avoid foreclosure as well as the deficiency judgment. Most lenders would rather recoup their loss right away as the borrower still can redeem the property for up to 12 months after the sale.

Loss mitigation consultants will analyze your case and give you a free foreclosure consultation so that you understand your options. You do not have to feel as though you are trapped on a sinking ship when you are in the foreclosure process in Alabama. There are some options that may be available to you that can save your home from foreclosure or at least allow you to walk away without having to be encumbered by a deficiency judgment that can haunt you for years to come and is not dischargeable, even in a Chapter 7 bankruptcy.

A loss mitigation consultant will analyze your individual foreclosure case and help you understand the options that are available to you with regard to your foreclosure. This includes loan modification, bad credit loans, government assistance and other options that you may not even know exist.

If you are heading towards the foreclosure process it the State of Alabama, the time to act is now. You need to prevent foreclosure from ruining your life. Loss mitigation companies can give you a fresh start on life by showing you how to stop foreclosure from happening to you. To find out how you can prevent foreclosure and get the foreclosure help you need, contact www.1stforeclosureprevention.com right away, before it becomes too late to do anything to stop foreclosure in Alabama.