Summary of Alabama's Foreclosure Laws

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If you are facing foreclosure in Alabama, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Alabama
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Alabama foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under a power of sale in a mortgage

Notice of the foreclosure

Foreclosing party must publish notice in a newspaper once a week for three consecutive weeks before the sale; no requirement that the homeowner be served by mail. However, mortgages in Alabama often contractually require the foreclosing party to notify the borrower (usually by mail) when foreclosure proceedings are started.

Reinstatement of loan before sale

Not available (except as permitted by the terms of the mortgage)

Redemption after sale

Available for one year or 180 days after the foreclosure sale in most cases, depending on the circumstances. Property must be surrendered to the buyer within ten days after a written demand is made, otherwise the right to redeem is lost.

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

If a service member dies while deployed overseas, the lender must wait at least 180 days before starting a foreclosure against the surviving spouse or the service member’s estate provided that the surviving spouse or the estate notifies the lender and asks for a delay (and the mortgage was taken out after August 1, 2009). Ala. Code §§ 35-10-70 to 35-10-71

Deficiency judgments

May be obtained by filing a lawsuit

Cash exempted in bankruptcy

$300

Notice to leave after house is sold

Entitled to a written ten-day notice to leave before eviction proceedings may be brought

Foreclosure statutes

Ala. Code §§ 35-10-1 to 35-10-30, 6-5-247 to 6-5-257

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