AL Underwriting Summary - Revision history

Alanfields: /* Foreclosure Review */

2025-10-01T16:49:33Z

‎Foreclosure Review

Alanfields: /* Spousal Joinder Requirements/Homestead */

2025-10-01T16:47:20Z

‎Spousal Joinder Requirements/Homestead

Alanfields: /* Foreclosure Review */

2024-12-10T20:27:09Z

‎Foreclosure Review

Alanfields: /* Spousal Joinder Requirements/Homestead */

2023-09-25T19:43:23Z

‎Spousal Joinder Requirements/Homestead

Alanfields: /* Mortgage/Transfer Tax */

2023-08-30T20:28:33Z

‎Mortgage/Transfer Tax

Alanfields: /* Mortgage/Transfer Tax */

2023-08-30T20:28:13Z

‎Mortgage/Transfer Tax

Alanfields: /* Construction Liens */

2023-08-22T18:26:22Z

‎Construction Liens

Alanfields: /* Property Tax */

2023-08-22T18:19:47Z

‎Property Tax

Alanfields: /* Property Tax */

2023-08-10T14:29:18Z

‎Property Tax

Alanfields at 14:28, 10 August 2023

2023-08-10T14:28:54Z

← Older revision		Revision as of 16:49, 1 October 2025
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	==Foreclosure Review==		==Foreclosure Review==
		+
		+	Alabama permits non-judicial foreclosures for both mortgages and deeds of trust, provided the security instrument contains a "power-of-sale" clause. Most foreclosures in Alabama are non-judicial. 35-10-1

	In Alabama, the redemption period for a foreclosed property depends on the type of foreclosure and the status of the property:		In Alabama, the redemption period for a foreclosed property depends on the type of foreclosure and the status of the property:

← Older revision		Revision as of 16:47, 1 October 2025
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	Alabama does allow the spouse to sign a separate consent to the mortgage or conveyance so as to not be bound by the terms of the mortgage/deed of trust or warranties of title. A suggested form for that is found [https://uww.wfgnationaltitle.com/images/4/46/AL_JOINDER_AND_CONSENT_OF_SPOUSE.docx here].		Alabama does allow the spouse to sign a separate consent to the mortgage or conveyance so as to not be bound by the terms of the mortgage/deed of trust or warranties of title. A suggested form for that is found [https://uww.wfgnationaltitle.com/images/4/46/AL_JOINDER_AND_CONSENT_OF_SPOUSE.docx here].
		+
		+	Best practice is to have spousal joinder on all conveyances because of ambiguity of what may have constituted homestead.

	==Power Of Attorney==		==Power Of Attorney==

← Older revision		Revision as of 20:27, 10 December 2024
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	==Foreclosure Review==		==Foreclosure Review==

		+	In Alabama, the redemption period for a foreclosed property depends on the type of foreclosure and the status of the property:
		+
		+	*General redemption period: The redemption period is usually one year after the foreclosure sale.
		+	*Homestead properties: The redemption period is 180 days if:
		+	**The mortgage was taken out on or after January 1, 2016
		+	**A homestead exemption was claimed in the tax year of the sale
		+	**The foreclosing bank provided proper notice at least 30 days before the sale
		+
		+
		+	There seems to be a “gotcha” scenario under the way the Alabama redemption price is calculated under Civil Practice 6-5-253
		+
		+	(a) Anyone entitled and desiring to redeem real estate under the provisions of this article must also pay or tender to the purchaser or his or her transferee the purchase price paid at the sale, with interest at the rate allowed to be charged on money judgments as set forth in Section 8-8-10 (as it is now or hereinafter may be amended), and all other lawful charges, also with interest as aforesaid; lawful charges are the following:
		+
		+	* * * *
		+	If the redemption is made from a person who at the time of redemption owned the debt for which the property was sold, the redemptioner must also pay any balance due on the debt, with interest as aforesaid thereon to date.
		+
		+	As I’m reading this, the foreclosed owner can get a windfall in the scenario where the lender lets the sale close for less than the outstanding balance – unless the lender takes it back or assigns the mortgage/note to the buyer.

	==Instrument Requirements ==		==Instrument Requirements ==

← Older revision		Revision as of 19:43, 25 September 2023
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	Some very old cases suggest that spousal signature may not be required on a Purchase Money Mortgage however, WFG's Underwriting Position is that spousal joinder is to be required on any deed or mortgage of Alabama Property that is, or may be, or may become homestead property. Underwriting approval is required to waive this requirement as to a purchase money mortgage because the law has changed in ways that are not apparent on Westlaw, since many of these cases predate the statutory amendments and it tends to be a very fact specific analysis.		Some very old cases suggest that spousal signature may not be required on a Purchase Money Mortgage however, WFG's Underwriting Position is that spousal joinder is to be required on any deed or mortgage of Alabama Property that is, or may be, or may become homestead property. Underwriting approval is required to waive this requirement as to a purchase money mortgage because the law has changed in ways that are not apparent on Westlaw, since many of these cases predate the statutory amendments and it tends to be a very fact specific analysis.
		+
		+	Alabama does allow the spouse to sign a separate consent to the mortgage or conveyance so as to not be bound by the terms of the mortgage/deed of trust or warranties of title. A suggested form for that is found [https://uww.wfgnationaltitle.com/images/4/46/AL_JOINDER_AND_CONSENT_OF_SPOUSE.docx here].

	==Power Of Attorney==		==Power Of Attorney==

@@ Line 49: / Line 49: @@
 *Withholding is also required in certain circumstances when the grantor is either not a resident of Alabama or is not deemed a resident.
-[More Detail on AL Recording Fees and Transfer Tax]
+[[More Detail on AL Recording Fees and Transfer Tax]]
 ==Spousal Joinder Requirements/Homestead==

← Older revision		Revision as of 18:26, 22 August 2023
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	==Construction Liens==		==Construction Liens==

		+	*Mechanics/Construction lien relate back to first work without a filing.
		+	*Most Subdivision infrastructure is lienable Work performed by clearing, grading or excavating real property is considered a permanent improvement and is, therefore, lienable. Mazel v. Bain, 133 So.2d 44 (1961). An architect who prepares drawings and supervises work is also permitted to claim a lien. Hughes v. Torgerson, 11 So. 209 (1892). But surveying, platting, and staking the community are not. Wilkinson v. Rowe, 98 So.2d 435 (1957)

	==Foreclosure Review==		==Foreclosure Review==

← Older revision		Revision as of 18:19, 22 August 2023
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	*Redemption price includes interest, excess bid amounts, and in some cases casualty insurance premiums paid and value of permanent improvements made by the lien holder Ala.Code 1975 s 40-10-122		*Redemption price includes interest, excess bid amounts, and in some cases casualty insurance premiums paid and value of permanent improvements made by the lien holder Ala.Code 1975 s 40-10-122
	*Answers are different if State is holder of lien certificate.		*Answers are different if State is holder of lien certificate.
		+	*After 3 year "administrative redemption" period, there is a separate period in which tax sale can be judicially redeamed. If tax deed buyer is not in adverse possession (eg vacant property) the judicial redemption period may continue indefinitely. [https://www.clarklawfirm.com/blog/tax-sales-of-real-property-in-alabama/]

@@ Line 39: / Line 39: @@
 *Answers are different if State is holder of lien certificate.
 [More on Tax Deeds in Alabama]
 ==Mortgage/Transfer Tax==