Alabama at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Alabama law lets a lender foreclose without a court case when the mortgage or deed of trust contains a power of sale. The sale is held at the courthouse door after notice is published once a week for three successive weeks in a county newspaper. A mortgage can also be foreclosed through a court. Ala. Code §35-10-12 (power of sale, mortgages executed after Dec. 31, 1988); see also §35-10-13 (notice), §35-10-14 (place and time), §35-10-1 (older mortgages), §35-10-3 (court foreclosure option) Show the source textWhere a power to sell lands is given in any mortgage, the power is part of the security and may be executed by any person |
| Tax sale excess proceeds | Each Alabama county uses either a tax sale of the property itself (the buyer can receive a tax deed after three years) or a tax lien sale; the county tax collecting official chooses. After a tax sale of the property, any excess bid is held in a separate account in the county treasury. It is paid to a person who redeems within three years; after that it can still be paid to the owner on the proof the statute requires (for example a recorded release and waiver of the right to redeem), but for sales in 2016 or later it becomes the county's property if that proof is not received within 10 years after the sale. Ala. Code §40-10-28; see also §40-10-180 (county chooses tax lien sale or sale of property), §40-10-29 (deed after three years), §40-10-120 (three-year redemption), §40-10-197(i)(7) (surplus after a tax lien foreclosure auction is distributed by the court) Show the source textUntil and unless the property is redeemed, the excess funds from the tax sale shall be held in a separate account in the county treasury during the three-year period. |
| Redemption after the sale | Yes. After a foreclosure sale the former owner (and certain others listed in the statute) may redeem the property within 180 days of the sale if it is residential property on which a homestead exemption was claimed in the tax year of the sale, or within one year of the sale for all other property. Ala. Code §6-5-248(b) Show the source textwithin 180 days from the date of the sale for residential property on which a homestead exemption was claimed in the tax year during which the sale occurred, or within one year from the date of the sale |
| Rules for recovery companies | Alabama's unclaimed property act regulates agreements with a finder to locate or recover property held by the State Treasurer. Total compensation may not exceed 10 percent of the amount claimed, and the agreement must be in writing, be signed by the apparent owner, and state that the property may be recovered from the State Treasurer without paying a fee. An agreement made between the date the property is presumed abandoned and 24 months after it is delivered to the State Treasurer is void, except an owner's agreement with an attorney to file a claim for identified property or to contest a denied claim. Ala. Code §35-12-93 (as amended by Act 2026-285); definition of finder at §35-12-71(7) Show the source textTotal compensation in an agreement covered by this section may not exceed 10 percent of the value of the amount claimed. |
How surplus funds arise in Alabama
When a home in Alabama is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Alabama
We confirm the sale figures in the public record, identify which office in Alabama is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Alabama that program is the Unclaimed Property, Office of the Alabama State Treasurer (Alabama State Treasury).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Alabama law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Alabama
Alabama regulates this kind of service. Alabama's unclaimed property act regulates agreements with a finder to locate or recover property held by the State Treasurer. Total compensation may not exceed 10 percent of the amount claimed, and the agreement must be in writing, be signed by the apparent owner, and state that the property may be recovered from the State Treasurer without paying a fee. An agreement made between the date the property is presumed abandoned and 24 months after it is delivered to the State Treasurer is void, except an owner's agreement with an attorney to file a claim for identified property or to contest a denied claim. (Ala. Code §35-12-93 (as amended by Act 2026-285); definition of finder at §35-12-71(7))
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Alabama
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Alabama, from locating the funds to filing the claim.
It depends on the kind of sale. After a court-supervised sale the court usually holds the money; after a trustee's or tax sale the trustee or the county usually does. Tell us the county and the sale date and a specialist will check.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.