All Forum Posts by: June Crile

Looking for hard facts on Alabama foreclosures.

Some states legal notice will specify if the loan in default is being foreclosed "SUBJECT TO" another mortgage.

In Georgia the notice states "Said property will be sold subject to (a) any outstanding ad valorem taxes (including taxes which are a lien, but not yet due and payable), (b) any matters which might be disclosed by an accurate survey and inspection of the property, and (c) all matters of record superior to the Security Deed first set out above, including, but not limited to, assessments, liens, encumbrances, zoning ordinances, easements, restrictions, covenants, etc. The sale will be conducted subject to (1) confirmation that the sale is not prohibited under the U.S. Bankruptcy Code." www.georgiapublicnotice.com.

Does anyone KNOW Alabama law, know for sure because the legal notice does not specify "subject to any liens superior", please no guesses.

Many Thanks.

Some states legal notice will specify if the loan in default is being foreclosed "SUBJECT TO" another mortgage. 

In Georgia the notice states "Said property will be sold subject to (a) any outstanding ad valorem taxes (including taxes which are a lien, but not yet due and payable), (b) any matters which might be disclosed by an accurate survey and inspection of the property, and (c) all matters of record superior to the Security Deed first set out above, including, but not limited to, assessments, liens, encumbrances, zoning ordinances, easements, restrictions, covenants, etc. The sale will be conducted subject to (1) confirmation that the sale is not prohibited under the U.S. Bankruptcy Code." www.georgiapublicnotice.com.

Does anyone KNOW Alabama law, know for sure because the legal notice does not specify "subject to any liens superior", please no guesses.

Many Thanks.

Hello Parker, There is not a list as far As I know. Have you looked at AlabamaPublicNotices. Com? You can filter your search to include only the county(ies) you are Interested in. I wish there was a list for each state that could be filtered to the counties I’m interested in containing owner nane(s), address, year bought, loan amount, deed book/page, attorney Information, etc. I would be a happy subscriber. Best of luck

I've had the same bankruptcy problem. It took 3 MONTHS, and a letter from my Real Estate Attorney to finally get my money back from the legal firm that conducted the foreclosure. What a nightmare!

Hello Denise,

I have a question I hope you don't mind helping me think through.  

If an owner of a pre-foreclosure and I reach an agreement and I buy the property before the foreclosure sale, the seller/distressed owner transfers by warranty deed or quit claim deed and I record the deed. I am not paying off the mortgage, I know that violates the due on sale clause in the security deed. When I say buy, I pay the owner any agreed upon amount to transfer the property to me. The property is a desirable property, at auction it is bought for more than payoff (and more than I paid the owner) so there is excess funds the foreclosed upon party is entitled to. In your opinion, do you think I am legally entitled to file for and receive the excess funds? I have concerns that because I did not sign the Security Deed/lien, and the foreclosure was not conducted against me that I may not legally be entitled the excess funds.

Please share your thoughts.

Hello Denise,

I have a question I think you can answer. I hope you don't mind helping me think this through.  

If an owner of a pre-foreclosure and I reach an agreement and I buy the property before the foreclosure sale, the seller/distressed owner transfers by warranty deed or quit claim deed and I record the deed. I am not paying off the mortgage, I know that violates the due on sale clause in the security deed. When I say buy, I pay the owner any agreed upon amount to transfer the property to me. The property is a desirable property, at auction it is bought for $70,000 more than payoff, so there is an overage that the owner is entitled to. In your opinion, do you think I am legally entitled to file for and receive the excess funds of $70,000? 

I recommend Denise Evans, Real Estate Broker. She's replied to and answered a lot of questions for me. She's very knowledgeable, she's a Bigger Pockets member. I'm not sure if she covers your area, but she's an Alabama Real Estate Broker.

I agree with Denise about not C or lower.  I personally have no experience with working with a lender on a short sale. My purchases have been on the courthouse steps, or by contacting the homeowner prior to the sale. I don't buy into sob stories and can usually tell if the person I am dealing with is sincere, of course that means face to face contact. The homeowners I've dealt with had unexpected, devasting medical issues, or drug problems, a couple inherited a home from her deceased mother and they were just...no nice way to say this.... they were trash that tried to burn the house and collect on insurance, another man sold to me before going in to serve a lengthy jail sentence. One of my sellers just quit paying his mortgage when he was granted Covid forbearance, he saved what he would have spent on the mortgage and moved into his girlfriend's house right before the foreclosure; and this brick home was immaculate, great condition! Each foreclosure is different.

Denise> How do you identify the short sales you want to go after?

Hello, for clarification and full disclosure I added the words (not a third party) to the first sentence in my previous post. 
If I were looking to acquire my Alabama RE license, what school do you recommend?

Hello Denise,

That is a lot of GREAT information. To me, the biggest concern is the borrower selling the right to redeem. 

Q) May I ask, Have you personally been involved personally or professionally in that situation? If you have a hard learned lesson, will you please share the details? Forums like this are great so we can come together as a community, work together, hopefully increase each others prosperity, and save each other devastation.

My attorneys may be able to get past a third party right of redemption. Maybe, maybe not.

I pulled this from: 
The Right Of Redemption Before and After Foreclosure In Alabama | Birmingham Foreclosure Attorneys (cloudwillis.com)

Alabama allows a person to buy back their home (not a third party) after it has been sold at a foreclosure sale by paying the price that the new owner paid for the property, plus additional costs. In Alabama, the original owner may choose to exercise their statutory right of redemption after you buy the property.  if it happens then you will be reimbursed the amount of money that you paid at the foreclosure sale, plus various other costs such as interest, taxes that you have paid on the property, and the value of any improvements that you made to the property. You will then be forced to convey the property back to the party who exercised their right of redemption.

Let's say a distressed homeowner (Party A) sells an investor (party C) the foreclosure right of redemption. The property is purchased by an Invester (Party B) at the courthouse steps. If I am Party B there's no way I am going to allow a third party (Party C) to redeem without a fight. If the homeowner SOLD the property, and there was a transfer of Deed prior to the foreclosure, that's a different story. Remembering that a deed does not have to be recorded to be valid. I also learned there are a lot of bankruptcy attorneys that will back date a bankruptcy, then you have to fight to get your funds back from the foreclosing attorney (months without interest). There's a lot that can go wrong in any state, with foreclosures, tax sales, it's a lot to learn, I've had some HARD learned lessons. They stick with you!!!

You are a treasure trove of information, and when I say I appreciate you, I mean it. Thank you