Alabama Deed Trust

Phase 1: Payment Default. Phase 2: Notice of Default. Phase 3: Notice of Trustee's Sale. Phase 4: Trustee's Sale. Phase 5: Real Estate Owned (REO) Phase 6: Eviction. The Bottom Line.

Generally, homeowners have to be more than 120 days delinquent before a foreclosure can begin. If you're behind in mortgage payments, you might be wondering how soon a foreclosure will start. Generally, a homeowner has to be at least 120 days delinquent before a mortgage servicer starts a foreclosure.

Alabama law generally gives homeowners a one-year redemption period after a foreclosure sale. But state law gives homeowners a 180-day redemption period after the foreclosure sale for homestead propertiesif proper notice about the right to redeem was given and the mortgage was taken out on or after January 1, 2016.

Initial contact. Lenders will usually initiate communication on a first missed payment. Demand letter. Filing of a foreclosure claim. Borrowers Potential Actions in the Face of Foreclosure. Redemption Period. Sale ordered by the court. Order for foreclosure.

In Alabama, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust.

Foreclosure is what happens when a homeowner fails to pay the mortgage. More specifically, it's a legal process by which the owner forfeits all rights to the property. If the owner can't pay off the outstanding debt, or sell the property via short sale, the property then goes to a foreclosure auction.

In most areas, you'll have about thirty days to catch up on your mortgage before the lender can take further action to foreclose on your home. After you have been sent a notice and the waiting period has expired, the lender can set a date to sell your house at a foreclosure auction.

Notice Of Default The lender will also give public notice to the County Recorder's office or file a lawsuit with the court. This officially begins the preforeclosure process, which can last 3 10 months.

Lenders will seize the home, which is typically used as collateral for the loan and will put the property up for sale to try and recoup losses. The foreclosure process from beginning to end typically takes a lender about 18 months to foreclose on a property during normal times.