The state of Alabama allows lenders to foreclose on and auction off Birmingham properties with a mortgage in default. Lenders must first advertise a foreclosed property in the local Birmingham area. After finding Birmingham foreclosures through the notices, buyers can show up and buy foreclosed homes at Birmingham public auctions.
Hunt down Birmingham foreclosure listings through newspapers. Alabama lenders must select a newspaper in the county of the foreclosed property, which would be Jefferson or Shelby County in the case of Birmingham foreclosures. Of course, if you live in the area, you can easily pick up a newspaper. But if you love outside the area or would like to look in additional newspapers, you can look for Birmingham newspapers online. USNPL.com and 50States.com both have lists of Alabama newspapers with online editions that you can use to search for foreclosure listings. You should look daily for a week at a time and every four weeks (Alabama foreclosure listings must run for four weeks).
Find the location of each Birmingham foreclosed property by looking at the individual foreclosure listings. You should also note the time and date of each auction. The notices also provide the Birmingham address of each property and the amount due.
Use the amounts due to make a short list of Birmingham-area properties that you may wish to purchase. Because the lender can bid that amount, you need to create a maximum bid that is above that amount but certainly less than the fair market value of the property.
Like most states, there is no right to inspect a foreclosure in Alabama before bidding on it at a public auction. But real estate professionals in the area may be able to help you assess the value of foreclosed homes in Birmingham that you want to buy. Neighbors may also have information if the properties are similar in that neighborhood.
Get cash ready to pay for any bids that win at Birmingham foreclosure auctions. If you have questions about this process of bidding and paying, then call the lender’s trustee before the foreclosure sale date.
Go at the scheduled time to foreclosure auctions and bid on your chosen properties. Pay up once you win an auction. You now need a property deed from the lender’s trustee.
Take your Alabama property deed and file it in the recording office in either Jefferson or Shelby County, whichever county the Birmingham foreclosure you buy is located.
Alabama Foreclosure Law Summary From ForeclosureLaw.org