In Alabama, can I be foreclosed on my home for missing three payments? My mortgage is held by a private citizen and he is giving me no recourse to pay the back months. What are my options? I have been in the home for 5 1/2 years and have always paid my mortgage until I was laid off and became ill.
A mortgage is a written pledge of property used as security for the repayment of a loan. The property you purchase is the collateral for the mortgage. If a debtor fails to make payments on the loan, the creditor can repossess your home. As a result, the creditor has legal rights to the property as the debtor pay off the mortgage. However, debtor has rights, too.
Alabama, like many other states, allows a debtor of a mortgage to catch up with their delinquent payments. In law, this called redemption. Should the creditor here fail to allow the homeowner to redeem the creditor would be in violation of Alabama Section 6-5-248.