Alabama Servicing Reference Guide

Citation

Topic

Requirement

Commencement of Action

(b) Time limit for service. If service of the summons and complaint is not made upon a defendant within 120 days after the filing of the complaint, the court, upon motion or on its own initiative, after at least fourteen (14) days' notice to the plaintiff, may dismiss the action without prejudice as to the defendant upon whom service was not made or direct that service be effected within a specified time; provided, however, that if the plaintiff shows good cause for the failure to serve the defendant, the court shall extend the time for service for an appropriate period. This subdivision does not apply to fictitious-party practice pursuant to 

(c) Upon whom process served. Service of process, except service by publication as provided in Rule 4.3, shall be made as follows:

(1) INDIVIDUAL. Upon an individual, other than a minor or an incompetent person, by serving the individual or by leaving a copy of the summons and the
complaint at the individual's dwelling house or usual place of abode with some person of suitable age and discretion then residing therein or by delivering a copy of the summons and the complaint to an agent authorized by appointment or by law to receive service of process

Civil Practice / Ala. Code §6-9-86

Ala. Code §6-9-149

Ala. Code §6-5-251

Foreclosure Sale

The sale must take place on any Monday in the month at the courthouse of the county where the property is located. When real estate or any interest therein has been sold by any sheriff, the sheriff, upon compliance by the purchaser with the terms of sale and the payment or tender of the fees for executing the deed, will execute a deed for the real estate or interest of the real estate sold and deliver the deed to the purchaser within 5 days after the sale. Possession of the property must be delivered to the purchaser within 10 days after written demand for the possession has been made by, or on behalf of, the purchasers or the purchaser's transferees. If the borrower, mortgagor, or anyone holding possession of the property fails to deliver possession of the property, the right of redemption of the borrower or person holding possession under the borrower is forfeited.

Consumer Credit Act / Ala. Code §5-19-4(a)

Late Payment Fees

When a scheduled payment in a consumer credit transaction is in default 10 days or more, the lender may charge and collect a late fee not exceeding the greater of $18 or 5% of the amount of the scheduled payment in default, not to exceed $100. The late charge may be collected only once on any scheduled payment, regardless of how long the payment remains in default. Although the Alabama Consumer Credit Act limits the amount of a late fee that may be charged, Alabama courts have held that a lender and borrower may negotiate the amount of late fees to be charged for loans of $2,000 or more; the amount of the late fee is limited only by principles of unconscionability.

Mortgage Satisfaction Act / Ala. Code §35-10-27

Ala. Code §35-10-92

Loan Satisfaction

When a mortgagee, transferee, or assignee of a mortgage, or the trustee or beneficiary of a deed of trust, receives full payment or satisfaction of the security instrument, it must enter the fact of payment or satisfaction on the margin of the recorded mortgage or deed of trust upon the written request of: (1) the mortgagor; (2) a creditor of the mortgagor having a lien or claim on the property mortgaged; (3) a person or entity purchasing the property from the mortgagor; (4) the owner of the mortgaged lands; (5) a junior mortgagee; or (6) the debtor in a deed of trust. The entry of satisfaction must be witnessed by the judge of probate, or by his or her clerk, who must attest to the entry of satisfaction in his or her official capacity.

Consumer Credit Act / Ala. Admin. Code r. 155-2-2-.10(1)

Ala. Admin. Code r. 155-2-2-.10(5)

Mortgage Payoff

When any obligation is paid in full, a licensee under the Alabama Consumer Credit Act must mark each instrument executed by the debtor “Paid,” or “Canceled,” showing the date of the payment or cancellation. The licensee must return the instruments to the borrower promptly upon the borrower's request, along with the release of any mortgages and termination of security interests filed. A licensee must provide payoff information in writing to the borrower without charge.

Civil Practice / Ala. Code §6-5-248

Ala. House Bill 90

Notice of Right to Redeem

The mortgagee who forecloses residential property on which a homestead exemption was claimed in the tax year during which the sale occurred must give the following notice to the mortgagor who signed the mortgage: "Alabama law gives some persons who have an interest in property the right to redeem the property under certain circumstances. Programs may also exist that help persons avoid or delay the foreclosure process. An attorney should be consulted to help you understand these rights and programs as a part of the foreclosure process." The notice must be mailed to the mortgagor at the address of the property subject to foreclosure at least 30 days prior to the foreclosure date by certified mail with proof of mailing and be included in the notice of sale.

Real Property Laws / Ala. Code §35-10-13

Notice of Sale - Non-Judicial Foreclosure

A notice of sale stating the time, place, and terms of the sale, together with a description of the property, must be given by publication once per week for 3 successive weeks. The notice of sale must be published in a newspaper published in the county where the land is located. If the property is located in more than 1 county, then the notice of sale must be published in all counties where the land is located. If no newspaper is published in the county where the land is located, then the notice must be placed for 3 successive weeks in a newspaper that is published in an adjoining county.

Civil Practice / Ala. Code Ala. Code §6-9-82

§6-9-87

Notice of Sale - Judicial Foreclosure

A notice of sale must be posted at the courthouse door at least 30 days prior to the sale and published in a newspaper in the county of the subject property once a week for 3 successive weeks. In addition, personal notice of the sale must be given to the defendant or a written notice must be left at the defendant's residence if the defendant is a resident of in the county. If the defendant is not a resident in the county, notice must be put up at the courthouse door. The manner of giving notice must be stated in the return.

Possession of the Property

Redemption Itemized Statement

Special Rules for Service Members