Know how Alabama foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Alabama. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: Foreclosurelaw.org offers a summary of Alabama foreclosure laws and a glossary of common foreclosure terminology. ForeclosureS.com provides the contact information for the Attorney General’s Office in Alabama and links to specific legislation regarding foreclosure in Alabama.

Get assistance with Alabama foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: The Homeownership Preservation Foundation offers a hotline that provides free foreclosure prevention counseling by HUD-approved agencies. The Department of Housing and Urban Development provides contact information for approved housing counselors in Alabama that are available for free or at a very low cost.

Retain one of the many foreclosure attorneys in Alabama

You may need one of the available Alabama foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Alabama foreclosure law, he or she may be able to make a referral.

I recommend: Longshore, Buck and Longshore in Birmingham has a broad-based practice with real estate foreclosures being a major area of practice. Najjar Denaburg handles clients throughout Alabama and includes real estate law as one of its practice areas.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like "guarantee" and "97% success rate", upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission.  The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the HUD or try the federal Making Home Affordable program.