Mobile Home Foreclosure Laws of Alabama
With a foreclosure, a lender will seek to reclaim a mobile home if the borrower doesn't make monthly payments on his mortgage note. Alabama laws on mobile home foreclosure are contained in Title 35, Chapter 10 of the Alabama Code. The state of Alabama sets few protections for borrowers who enter into delinquency, and the foreclosure can take as few as 30 to 60 days to complete, according to Foreclosure Law.
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Judicial
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If a mobile home loan contract contains no power of sale cause and the borrower has not made payment on the loan, the lender can file a suit in a local court to request a foreclosure to regain his property according to Section 35-10-3 of the Alabama Code. The court will set the time and date of the sale.
Non-Judicial
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According to Foreclosure Law, most Alabama mobile home loans contain a power of sale clause that allows the lender to sell the property at a specific time and date. With a non-judicial loan, the lender does not need to go to court to foreclose upon a property. The state of Alabama does not require a minimum time period or notification of loan default other than what the owner and lender agree upon in the mortgage contract.
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Notice of Sale
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Per Section 35-10-8 of the Alabama Code, the lender must publish a notice a sale in a local newspaper for at least four weeks if the lender obtains a court order to foreclose upon the property. For a non-judicial foreclosure, Section 35-10-3 of the Alabama Code requires the lender to publish a notice of sale in a local publication for three weeks before selling the property. This notice provides the mobile home owner with legal notice of his default and when the property will be sold.
Auction
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According to Section 35-10-7 of the Alabama Code, the sale of the foreclosed upon mobile home will take place in the county in which the mobile home resides. The county will conduct this auction on the steps of the county courthouse or near the courthouse door between the hours of 11 a.m. and 4 p.m. on the designated day.
Redemption
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After the auction, the foreclosure process has been completed, and the highest bidder owns legal title to the property. The original mobile home owner can regain title to his property within one year of the sale by requesting the full amount of lawful charges required to redeem the property. If the lender bought back the mobile home at a foreclosure auction, the original owner must pay back the full loan balance. If another bidder purchased the home, the redeemer will have to pay back the final auction price. The original owner may have to pay additional charges of late fees, improvements to the property, insurance premiums, property taxes and up to 12 percent interest on the sale price.
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