What Homeowners in Alabama Can Expect During the Foreclosure Process

If you’re concerned about your property going into foreclosure due to circumstances beyond your control, a good option would be to work with your lender or bank for a resolution before things go any further. However, going through the foreclosure process can be made much easier when homeowners understand what lies ahead. Below you will be able to read a bit of information around what homeowners in Alabama can expect during the foreclosure process. 


Lenders understand that homeowners may go through temporary financial hardships. Because of this, lenders usually have a grace period that allows homeowners to pay their mortgage slightly after it is actually due. However, sometimes homeowners will fall behind on payments and not have any good available options to get caught back up on what is owed. Once there is a missed payment, the lender or bank will usually reach out to you to get some information around the situation. They will sometimes be willing to work out a payment arrangement to avoid further action that will lead to foreclosure. Default is the first phase of the foreclosure process.

Notice of Default

As part of the foreclosure process, lenders will issue a notice of default to homeowners, which gives you 90 days during the foreclosure process to pay the bill. If the bill is not paid in 90 days many times the account becomes non-curable unless there is a full mortgage payoff.

Mortgage Reinstatement

Homeowners who have entered the foreclosure process but can catch up with past due payments, including interest, penalties, and fees can stop the process at this point by working with the lender to reinstate the mortgage, then continue paying their mortgage as usual per mortgage agreement.

Notice of Sale

After the initial 90-day period following the notice of default, homeowners can anticipate receiving a notice of sale, signaling the next phase in the foreclosure process. Typically, within 21 days of this notice, the lender’s trustee will schedule an auction to sell the property.


During the foreclosure process, the final step for homeowners in Alabama is the auction, where the winning bidder must pay for the property immediately. Should the home not sell at auction, it will become what is known as an REO or real estate owned property, converting back to the lender. If you have not moved out from the house yet, you can expect the buyer to serve an eviction. With an REO, the lender may attempt to assist you with moving, offering cash for keys to attain possession. Most often though, once a home is sold at auction, the winning bidder will file for the eviction via compliance with Alabama state law. There are some things you can do to fight the eviction, but winning the case is extremely unlikely as the winning bidder from the foreclosure auction is now entitled to the property via a warranty deed recorded at the county courthouse at the time of sale. You no longer have legal rights to the property and would be considered a trespasser to the judge at the courthouse. Foreclosure auction and eviction is the last phase of the foreclosure process in Alabama.

How To Avoid Foreclosure In Alabama

A good way to avoid foreclosure and the foreclosure process in Alabama is to sell your home directly to a local cash home buyer. This enables you to sell your home prior to the bank foreclosing on it and ruining the next several years of your life by placing a foreclosure event on your credit profile. North Alabama House Buyer is a trusted and local home buyer that helps folks avoid foreclosure. Our home buying company would love to be a resource to you so you don’t have to go through the stress of a long drawn out foreclosure process and end up with no money in your pocket and a bad credit record at the end of everything. If you sell your home to us, we can assure you of a smooth, hassle free closing. We’ll buy your home as-is, fast, and for cash so you won’t have to worry about anything! Walk away from your property with money in your pocket and a clean financial record vs. getting foreclosed on with a bank who will charge you ridiculous fees, interest expense, and ruin your credit for the next several years. If you are facing the difficult situation of foreclosure and are looking for a local and trusted home buyer to help you in your situation, North Alabama House Buyer may be a good option for you!

North Alabama House Buyer

Selling directly to North Alabama House Buyer can turn everything around for homeowners facing foreclosure; our goal is to save you time and money. A direct sale to us means no commissions, closing costs, or hidden fees; our aim is complete transparency and no pressure. And, to save you even more money, we buy houses as-is for cash in Alabama, meaning you can keep your wallet in your pocket and forget about tons of property showings, repairs or cleaning. If you sell to North Alabama House Buyer, you can even pick the date for your closing! We will close on your timeline and your schedule that you choose. If you would like to learn more about Our Company, the process of getting a fair, as-is, cash offer on your home, or just want to hear our story of being a local home buyer feel free to give us a call or send us a text at (256) 824-9181. We’d love to help you out and be a resource to you!

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