What happens at the actual foreclosure sale in Alabama?
“What happens at the actual foreclosure sale in Alabama?”
There will be someone to conduct the foreclosure — it can be an “auctioneer” or a foreclosure lawyer. Usually an auctioneer.
The auctioneer will stand there with a piece of paper that lists the auction, and then will read it to “conduct” the auction, and interact with the bidders.
Usually, the mortgage company is the highest bidder, however, every once in a while it’s an investor or someone who’s interested in the property.
That is the start of the actual foreclosure sale.
However, let’s back up a little bit to before the sale.
When does the sale take place?
Well, the legal hours of foreclosure are between 11 am and 4 pm.
Where does the foreclosure sale take place?
Just outside the front entrance of the courthouse where your property is being sold between those hours to do the foreclosure sale.
In addition, the foreclosure deed needs to be prepared.
The deed is the transfer of ownership.
The deed needs to be prepared for the sale, signed, notarized, and then filed into probate court.
Once the deed has been filed, the foreclosure sale is over.
Hope this is helpful to you!
If you have any questions, feel free to get in touch with us.
We’d be glad to help you figure out the best course of action for your unique situation.
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Thanks for reading, and have a great day.
PS — Here are some reminders about sales.
First, they are normally non-judicial in Alabama which means they happen like we described above rather than the mortgage company filing a lawsuit.
Second, you should look at your mortgage to see if you have the right to bring a lawsuit to have a judge look at the sale — in essence to turn the sale into a judicial case.
Third, read over the “default” or “notice of default” or “right to cure” letter that you would have received before the acceleration letter and before the scheduling of the sale.
If the premises have already been vacated and the foreclosure sale occurs,can the mortgage company do anything to recoup the difference between the sale price and the mortgage balance?
Judy,
In Alabama — Yes. They can sue for a deficiency. So if the mortgage amount owed is $300,000 and the foreclosure sale produced $250,000, then they can sue for the difference — $50,000.
Some states do not allow this but Alabama does. It is rare to see this happen but it can occur.
Hope that helps!
John Watts