First-time home buyers and even investment buyers might find some cheap deals by bidding to buy foreclosed homes in Alabama. Like most states, Alabama foreclosures are sold at public auction. Indviduals interested in buying foreclosed property first need to locate the properties by using Alabama foreclosure listings. They can then scout out good deals and prepare bid money to buy foreclosures at public auction. Bidders also need to know the exact process for bidding to avoid losing a deal on Alabama foreclosures.
Use newspapers to find Alabama foreclosure listings. The lender must publish a notice of sale in a newspaper in the county where the foreclosed home is located. Thus, each Alabama county could possibly have more than one newspaper that might have foreclosure notices for that county. Use 50states.org to find a listing of online Alabama newspapers. You can also search for “Alabama newspapers online” to find similar lists. This may save you time and money and allow you expand your search of foreclosed homes in Alabama. Each notice must run for four straight weeks. Thus, you will need to look at least once every four weeks but probably more to make sure you catch all Alabama foreclosure listings for a particular county.
Look at the notices to get the time and place of the sale, the address of the foreclosed property and other details of the sale, such as the foreclosing party and the home owner. The typical location of an Alabama foreclosure sale is the county courthouse. However, if the mortgage had a power of sale with a different location, then the auction is held at that different location.
Compile a list of the foreclosures you might like to buy in Alabama. Each listing will tell you what is owed on the property. You can certainly expect the bank or lender to bid at least that amount, so be prepared to bid more. You can also visit the foreclosed home, but you do not have a specific right to inspect the property. Nonetheless, pay a visit to get some idea of the surroundings and whether you think it is a good deal. You can also speak to neighbors and real estate agents to get an idea of the market value of homes in that area.
Prepare cash for the Alabama foreclosure auction. You must pay cash for foreclosed properties in Alabama when you place the winning bid.
Show up at the auction and look for the person in charge of selling the Alabama foreclosure you seek to buy. Watch that person closely and be prepared to bid your maximum amount. You should have that maximum amount nearby in cash so you can buy the property.
Get a deed from the seller. Take this deed to the county recorder’s office and make sure you file it as soon as possible. This will protect your rights in the foreclosure in case someone else makes a claim on the property.
Alabama Foreclosure Law Summary From ForeclosureLaw.org