Alabama foreclosure laws: how the process works and how long it takes

• Ala. Code § 35-10-1 et seq.: General statutory framework for mortgage foreclosure in Alabama; Ala. Code § 35-10-12 makes a mortgage's power of sale part of the security and lets the mortgagee, its agents or attorneys sign the foreclosure deed to the buyer; § 35-10-13 requires notice of the sale by publication once a week for three successive weeks; § 35-10-14 sets where and when the sale is held (the front or main courthouse door, between 11 a.m. and 4 p.m.)
• Ala. Code § 35-10-13; § 6-8-62; § 6-5-248(h): Requires notice of the sale by publication once a week for three successive weeks in a newspaper published in the county where the property is located, with the first notice at least 18 days before the sale. The notice must give the time, place, and terms of the sale and a description of the property. For a home on which a homestead exemption was claimed for the tax year of the sale, the lender must also mail the borrower a notice by certified mail at least 30 days before the sale.
• Ala. Code § 6-5-247 through § 6-5-259: Statutory right of redemption after foreclosure sale; Ala. Code § 6-5-248 sets the redemption period (180 days for a home on which a homestead exemption was claimed for the tax year of the sale, one year for other property) and lists who may redeem (including debtors and mortgagors, their spouses, children and heirs, junior mortgage holders, and judgment creditors); § 6-5-251 lets the buyer demand possession, and a former owner who does not hand it over within 10 days loses the right to redeem; § 6-5-252 lets anyone entitled to redeem demand a written statement of the debt and lawful charges; § 6-5-253 sets the redemption price (the sale price plus interest at the rate set for court judgments, plus lawful charges)
• Ala. Code § 6-5-248: Establishes the statutory redemption period after foreclosure sale: 180 days for residential property on which a homestead exemption was claimed for the tax year of the sale, or one year for other property. The former owner (debtor), the debtor's spouse, and certain other qualified parties may redeem the property within that period by paying the redemption price.
• Ala. Code § 6-5-253(a); § 7-3-118(a): A foreclosure sale does not wipe out any balance still due on the debt: someone who redeems from the owner of the debt must also pay that balance (§ 6-5-253(a)). The lender can sue on the note for what remains, within six years after the due date or accelerated due date for a note payable at a definite time (§ 7-3-118(a)).
• Ala. Code § 6-10-2: Homestead exemption of $18,800 for Alabama residents, or $56,400 for a resident who is 62 or older or has a disability. Limited protection — exemption does not protect against mortgage foreclosure; applies against unsecured judgment creditors only.
• Ala. Code § 5-19-1 et seq.: Alabama's consumer lending law governing interest rates and terms for consumer credit transactions. Does not directly govern foreclosure procedure but applies to the underlying loan terms.

After foreclosure sale, the purchaser may need to obtain a court order for eviction. The federal Protecting Tenants at Foreclosure Act provides 90-day notice to bona fide tenants.

Generally first in time, first in right. Alabama recording statutes govern lien priority. Property tax liens have priority over all other liens including first mortgages.

Ala. Code § 6-2-34 sets six years for suits on written promises not under seal and for recovering money on a loan; it does not by its terms set a deadline for foreclosing a mortgage. For a note payable at a definite time, six years after the due date, or after the accelerated due date if the loan was accelerated. For a note payable on demand, six years after demand; if no demand is made, a suit is barred once no principal or interest has been paid for 10 years. A suit for the balance left after a foreclosure sale is subject to the time limits for debt actions; for a note payable at a definite time, six years after the due date or accelerated due date (Ala. Code § 7-3-118(a)).

• Unpaid property taxes: Property tax liens have priority over mortgage liens in Alabama. Tax sale procedures vary by county. Where a county sells tax liens, the lien holder can sue to foreclose the right to redeem no sooner than four years after the lien sale. Anyone entitled to redeem can redeem before judgment or instead demand that the property be sold at public auction, and any surplus from that auction goes to the owners, their heirs, or other successors, as the court decides (Ala. Code § 40-10-197).

$18,800 (Ala. Code § 6-10-2, as adjusted for inflation by the State Treasurer). A resident who is 62 or older or has a disability can claim up to $56,400. This does not stop mortgage foreclosure — it only protects equity from unsecured judgment creditors. The Treasurer's July 1, 2026 inflation adjustment raises the $18,800 figure to $20,475 for exemptions claimed on or after April 1, 2027. In bankruptcy, Alabama residents can use only Alabama exemptions and federal exemptions other than those listed in 11 U.S.C. § 522(d), so the federal bankruptcy homestead amount is not available to them (Ala. Code § 6-10-11).

Alabama applies the federal SCRA to Alabama National Guard members, and members of another state's National Guard employed in Alabama, who are called to state active duty or federally funded duty, other than training, in a war, armed conflict, or emergency proclaimed by the Governor or the President (Ala. Code § 31-12-2(a)). Under the SCRA, if you took out your mortgage before active duty, you generally can't be foreclosed on without a valid court order while on active duty and for 12 months after it ends, and you can ask for a 6% interest-rate cap during active duty and for one year after.

Under the federal rule, qualified principal-residence debt may be excluded from income if canceled before January 1, 2026, or under an arrangement entered into and documented in writing before that date. Bankruptcy or insolvency exclusions may apply separately.