Facing foreclosure is a traumatic experience for most homeowners and their families. The thought of losing your home to foreclosure can be devastating, but you don’t have to give up. You can stop the foreclosure process and save your home. In Alabama, the foreclosure process is usually non-judicial, meaning the foreclosure will be processed with a court’s involvement. Various laws guide how the foreclosure is carried out; these laws differ from state to state. To save your home, you have to find out how the foreclosure is done in Alabama; only then will you know how you can effectively stop foreclosure.
Like most states, your lender has to wait 120 days after you stopped making payment before they can initiate foreclosure. During this period, you can negotiate alternative solutions with your lender and prevent foreclosure from happening. However, if you are unable to do this, your lender is authorized to foreclose your home. It’s more challenging to stop foreclosure after it’s been initiated. If you take action early, you can stop the foreclosure process by using these options:
These and many other options are available for you to stop foreclosure. Talk to your lender to find out other options they have available for you. The earlier you act, the better. There are also other essential things you should know about Alabama foreclosure laws. If your home is foreclosed and the money gotten from the sale does not cover all the amount you owned, your lender can sue you for the remaining. A judgment called deficiency judgment will be passed, and even though you’ve lost your home, you have to pay off the remaining balance.
In Alabama, you can have up to a year to redeem your home, if you can get all the amount owned plus other charges you’ve incurred, including late charges, foreclosure charges, etc. Discuss with your attorney about the state of your finances and determine what is best for you.