The foreclosure process in Alabama is usually a non-judicial foreclosure process, which implies that your lender does not have to file a petition to court before foreclosing your home. After you’ve missed a couple of payments, you will be sent a notice of breach, and if you did not take any action, you risk losing your home to foreclosure. It’s not compulsory in Alabama if your lender sends you a foreclosure notice or not but the most post the notice in the newspaper. Once a foreclosure process starts, it can be challenging to stop it. However, to be able to stop foreclosure effectively, you must be familiar with how the process is done in your state.
There are government programs in Alabama that make available trained mediators for struggling homeowners. A mediator will be assigned to you to help you negotiate loss mitigation alternatives with your lender. Having a trained mediator help you negotiate a loan modification or any other loss mitigation form is very important. You will be saved from a lot of stress, unnecessary charges, and costly mistakes. You should also note that Alabama law permits your lender to file for a deficiency judgment, provided the amount gotten from the foreclosure sale does not cover for the amount you owe.
To prevent this, you can sell your home to foreclosure in a process called a short sale. A short sale occurs when you sell your home for a value lesser than the amount you owed. A foreclosure will help you prevent damage to your credit score that a foreclosure can cause. Also, you will avoid being sued for deficiency judgment provided you can convince your lender to agree on a short sale. There are also other means by which you can stop foreclosure in Alabama. Contact your lawyer to find out more about the options listed above and which is best for your financial situation.
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