What exactly is a foreclosure deed in Alabama?
“What exactly is a foreclosure deed in Alabama?”
There are many misconceptions out there about what a foreclosure deed is.
Today we would like to clear those up for you.
When we’re talking about who owns your house, we tend to jokingly say that the bank owns it.
Technically speaking, we own our houses.
There is a debt that we pay back to the bank (the “note”), and the mortgage ties that debt to the house, but it’s in our name.
In a foreclosure, the bank says they’re transferring the ownership from you to the highest bidder at your foreclosure sale.
The foreclosure deed is what transfers the ownership.
So if you look at the foreclosure deed, which is filed in probate court, it will say when the loan was taken out and the parties involved in the deed.
It will also say something about the payments being late, and that the foreclosure sale was done during the legal hours on the particular day of the foreclosure.
Essentially, the foreclosure deed will have the details of the foreclosure sale, and transfer of ownership in it, which will be filed in probate court so everyone can see it. The transfer of ownership will say something like “Bob and Betty Smith sold the home to Bank of America”. The concept is the previous owners sold it to the high bidder.
(We have another article about what happens during the foreclosure sale that you’re welcome to check out.)
Hope this is helpful to you!
If you have any questions, feel free to get in touch with us.
We would be glad to help you in any way we can.
You can reach us by phone at 1-205-879-2447.
Or, if you prefer, you can fill out a contact form and we will get in touch with you quickly.
We look forward to chatting with you!
Thanks for reading, and have a great day.
P.S. If you’re facing a foreclosure, you should also look at your credit reports before and after it happens. And remember there is a way to normally stop a foreclosure without filing for bankruptcy.