Overcoming Personal and Legal Challenges

Overcoming Personal and Legal Challenges

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How may I prevent foreclosure in Alabama?

Alabama homeowners facing the loss of their homes could consider bankruptcy as an option to prevent foreclosure. As reported by Forbes, Alabama law requires lenders to follow a non-judicial foreclosure process.

Instead of relying on lawsuits to retrieve property titles, lenders may work with court trustees to sell homes in public auctions. Lender representatives, however, must first publish notices of properties slated for an upcoming sale. If you fell behind on mortgage payments, your loan documents typically note when your account is in default and subject to sale by auction.

Foreclosure notices must publish in the property’s county

Under Alabama’s Code, notices of properties available for sale at an auction must appear in print once a week for at least three weeks. Upcoming real estate auctions generally appear in the local newspapers covering each property’s location.

Property lots that extend through two or more counties require a local notice listed in each county. Lacking a local newspaper, you may find a notice in the neighboring county’s paper. Notices must provide property descriptions and outline sales terms. The listing must also note the auction’s date, time and place.

Bankruptcy may delay or avoid foreclosure

Alabama law may allow property owners to redeem their homes before they sell at auctions. In some cases, filing for bankruptcy could stop foreclosure, as noted by Credit Karma.

By submitting a petition, the court issues an automatic stay, which may stop an auction sale. Agreeing to a payment plan or catching up on past-due mortgage payments may allow you to keep your home.

Property owners have options before losing their homes to foreclosure, which could take several months. As noted by the Consumer Financial Protection Bureau, homeowners may consider refinancing or requesting forbearance. A bankruptcy filing may allow families to remain in their homes when other options fail.