Alabama (AL) Foreclosure Laws

alabama-mapAlabama 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.
  • Article 2 Satisfaction of Mortgage Liens.
  • 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.