Start with free help
- Call your loan servicer and ask about repayment plans, forbearance, a loan modification, or a short sale if you owe more than the house is worth.
- Talk to a HUD-approved housing counselor. Counseling is free or low-cost, and a counselor can read your letters with you.
- Know the federal timing rule. For most mortgages on a home you live in, federal rules generally keep a servicer from starting foreclosure until you are more than 120 days behind.
- Watch for scams. Never pay an upfront fee to someone promising to save your house, and never sign your deed over to anyone who says you can stay and buy it back later.
How foreclosure works in Alabama
Most Alabama mortgages allow a non-judicial foreclosure, meaning the lender can sell the house without filing a lawsuit. Before the sale, notice is published once a week for three consecutive weeks in a newspaper in the county where the house sits, and the sale is usually an auction at the county courthouse. Alabama law also gives some former owners a limited right to redeem the property after a foreclosure sale. Whether that applies to you, and on what terms, is a question for an attorney.
When selling may make sense
Selling can be worth comparing if you can't afford the house even with help, if the house needs repairs you can't fund, or if you want to protect equity. A sale has to pay off the mortgage and other liens at closing, or your lender has to approve a short sale. It also has to close before the foreclosure sale. Many cash buyers don't need a lender's approval, which removes one common source of delay.
What we can and can't do
UglyDuck is not a foreclosure rescue service, and we don't negotiate with lenders. If a sale to us or to a buyer in our network fits your situation, it closes through a title company or closing attorney, and the payoff goes to your lender. Read our guide to selling a House When You're Facing Foreclosure for the bigger picture, including how foreclosure works in West Virginia and Pennsylvania.
For a broader explainer that covers Alabama, West Virginia and Pennsylvania, read selling a House When You're Facing Foreclosure.
Selling in another state? See the Pennsylvania and West Virginia versions of this page.
General information, not legal, tax or financial advice. Laws and procedures change, so check with a licensed attorney, tax professional or HUD-approved housing counselor about your situation. UglyDuck is a home-buying and lead-generation service: we may buy your house ourselves or share your request with a trusted local buyer.