Alabama Foreclosure Laws allow for both judicial and non-judicial forms of foreclosure process. Either Mortgage or Deed of Trust can be used as legal instruments to secure debt. Foreclosing on a property through the judicial process is quite rare in Alabama as Deed of Trust instrument is widely preferred and adopted.
In Alabama, there isn’t much significance to the type of the legal instrument used, as either of them allow a lender to pursue a non-judicial process even in the absence of a Power of Sale clause. These laws are quite favorable to the lien holders/lenders/banks as they allow for an expedited pre-foreclosure process compared to several other states. The entire process typically lasts from 30 – 90 days.
Alabama Foreclosure Law Summary Time line: 30 – 90 days Redemption Period: Up to 12 Months from the date of sale Deficiency Judgments: Allowed Judicial Process: Yes, but very rare Non-Judicial Process: Yes, commonly used Legal Security Instruments:
Both Mortgage and Deed of Trust
The following are direct links to the laws that govern Alabama Foreclosures:
- Article 1 Powers Contained in Mortgages.
- Section 35-10-1 Power of sale constitutes part of security; by whom executed; effect of conveyance; index of foreclosure deeds.
- Section 35-10-2 Sale under power where instrument silent as to place or terms of sale.
- Section 35-10-3 Foreclosure when instrument contains no power of sale.
- Section 35-10-4 Sale of lands situated in two or more counties.
- Section 35-10-5 Foreclosure deed conveys legal title.
- Section 35-10-6 Additional satisfaction permitted under continuing power of sale.
- Section 35-10-7 Sale to be held in county where property situated.
- Section 35-10-8 How notice of sale given.
- Section 35-10-9 Sales contrary to article null and void.
- Section 35-10-10 Sections 35-10-7 through 35-10-9 not applicable to mortgages or deeds of trust executed before September 29, 1923.
- Article 1A Foreclosure by Power of Sale for Mortgages Executed After December 31, 1988.
- Section 35-10-11 Definitions.
- Section 35-10-12 Execution of foreclosure by power of sale; effect; indexing of deeds.
- Section 35-10-13 Notice of sale; minimum standards.
- Section 35-10-14 Place and time for conducting foreclosure by power of sale.
- Section 35-10-15 Successive sales under power permitted.
- Section 35-10-16 Law governing applicability.
- Article 2 Satisfaction of Mortgage Liens.
- Section 35-10-20 When indebtedness presumed to have been paid.
- Section 35-10-21 When payment required to be entered in record.
- Section 35-10-22 Partial payments – When entered on margin of record.
- Section 35-10-23 Partial payments – Notices or demands to enter partial payments or satisfaction.
- Section 35-10-24 Partial payments – Entry by execution and delivery of separate instrument.
- Section 35-10-25 Executors and administrators authorized to execute releases, etc.
- Section 35-10-26 Title revested upon payment of debt.
- Section 35-10-27 Entry of full payment or satisfaction in record – Generally.
- Section 35-10-28 Entry of full payment or satisfaction in record – Satisfaction by one of several joint mortgagees, etc.
- Section 35-10-29 Entry of full payment or satisfaction in record – Vendor’s or other lien reserved in conveyance.
- Section 35-10-30 Penalty.
- Article 3 Deeds in Lieu of Foreclosure.
- Article 4 Foreclosure on Surviving Spouse or Estate of Mortgagor Dying Overseas While on Military Service Active Duty.
- Article 5 Alabama Residential Mortgage Satisfaction Act.
- Section 35-10-90 Short title; application; definitions.
- Section 35-10-91 Payoff statement; notice.
- Section 35-10-92 Submission of a satisfaction of a security instrument for recording.
- Section 35-10-93 Service as a satisfaction agent.
- Section 35-10-94 Notification by satisfaction agent to secured creditor.
- Section 35-10-95 Conditions for satisfaction agent to sign and submit affidavit for recording.
- Section 35-10-96 Affidavit of satisfaction requirements.
- Section 35-10-97 Effect of recording affidavit.
- Section 35-10-98 Liability.