Alabama Foreclosure Process

If you are wondering what the Alabama foreclosure process is like there are many things to consider. These things include how it works, time, and if the process actually stops. These are very important things you should know if you think you might miss a payment.

The Alabama foreclosure process begins in some cases as soon as you officially miss the first payment or after the second missed payment. This usually depends on the lender you used to purchase the home. The lender will initiate the foreclosure process through the court systems in your local county by filing a notice of default. This will be posted in the local newspapers and announced to the public that payments have been missed and the foreclosure process has begun. The bank will try to contact you and work out a plan on getting caught up or saving the home. If you choose to let the process go through then the bank will then set up a date to sell the home at an auction. At this date the home will be sold at the auction and you will be required to move out of the home.

The Alabama foreclosure process could take from six months to a year depending on the bank and how backed up the courthouse is in the county you live in. Some lenders are very quick with processing foreclosures because they have had so many recently and they know it is better for them to make the process happen quickly. The average foreclosure process takes approximately 8 months from the time the borrower misses the payment until the home is sold at the auction.

When the home sells at the auction or when the home is returned to the bank the foreclosure process will be completed. If the borrower had an 80/20% loan on the home then the home will be sold for the 80% or as much as the bank can get. Anything additional will be paid toward the 20% loan. Any money remaining that is owed on the 20% loan will be treated as a private loan and the bank will come after the borrower for through garnishments and any other method of recover they can use. The foreclosure process is complete when the home sells and the final amount of money the borrower owes is determined.

Once the Alabama foreclosure process begins you can make it stop by getting caught up on your payments. If you make a deal with the bank then you need to maintain the agreement or you could start the process up again.

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