Which type of foreclosure process does Alabama law require for residential mortgage loans?
Correct Answer
C) Judicial foreclosure requiring court involvement and approval
Alabama is a judicial foreclosure state. Under Code of Alabama §35-10-1 et seq., foreclosure on a mortgage must proceed through the court system, requiring the lender to file a lawsuit and obtain a court judgment before the property can be sold. This distinguishes Alabama from many neighboring states that use non-judicial (power of sale) foreclosure.
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Previous Question
In Alabama, when a borrower obtains a mortgage loan to purchase real property, who holds legal title to the property during the loan repayment period?
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Marcus purchased a home in Birmingham with a mortgage loan. He later defaulted, and the lender completed a judicial foreclosure sale on March 15, 2024. Under Alabama law, until what date does Marcus retain the statutory right to redeem his property?