Alabama Renters’ Rights During Foreclosure: What You Need to Know

If you’re renting a home or apartment in Alabama and receive notice that your landlord’s property is being foreclosed, you may feel anxious about your future. Knowing your rights under Alabama law can help you navigate this situation and stay informed about your options.

What Does Foreclosure Mean for Alabama Renters?

Foreclosure is when a lender (often a bank) takes back a property after the owner fails to pay the mortgage. For renters, a foreclosure can create uncertainty about continued tenancy and possible eviction. In Alabama, there are specific laws and notice requirements to protect renters living in foreclosed properties.

Your Rights During and After Foreclosure

As a renter, your main protections during a foreclosure come from state and federal laws. Key points include:

• Notice to Vacate: Under Alabama law and federal rules, you must be given a written notice before being required to move out after a foreclosure.
• Lease Continuation: If you have a written lease, you generally have the right to remain in the property until the lease ends, unless the new owner will live in the home as their main residence.
• Month-to-Month Tenancy: If you rent month-to-month, you must receive at least 90 days’ written notice to vacate after the foreclosure sale.
• The new property owner must follow all lawful eviction steps. You cannot be forced out without proper notice and court process.
• You still have responsibilities under your lease, including paying rent.

These protections come from both the Protecting Tenants at Foreclosure Act (PTFA) and Alabama state law.^[1]

Notice Requirements and Eviction Process

Alabama requires landlords or new property owners to provide formal notice before taking eviction action after a foreclosure. Here’s what to expect:

• After a foreclosure sale, the new owner must give you at least 90 days’ notice if you don’t have a lease or your lease can be terminated due to foreclosure.
• If your lease remains valid, you can stay until its expiration unless the new owner is moving in personally.
• Eviction follows the standard legal process under the Alabama Uniform Residential Landlord and Tenant Act.^[2]
• Eviction requires a court order—self-help evictions are illegal.

What Official Forms Will You Receive?

• Notice to Vacate (no official form number): This written notice is usually given by the new owner. It includes your move-out deadline. Always request the notice in writing. Learn more at the Alabama Court System website.
• Unlawful Detainer Complaint (AOC-1028): If you don't move out after notice, the new owner may file this court form to start an eviction. You’ll receive a copy with a hearing date. To respond, you can appear at court or file a written answer.
• Summons (AOC-1027): Notifies you of the lawsuit. You’ll need to respond or appear in court. More details on form numbers and procedures can be found at the Alabama Unified Judicial System: Civil Forms page.

For example, if you receive an Unlawful Detainer Complaint after a foreclosure, attend the hearing and take a copy of your lease. You can also file defenses if you believe the notice or process wasn’t handled properly.

Which Alabama Tribunal Handles Rental Foreclosure Issues?

Evictions following foreclosure are managed by the District Courts of Alabama. Your local District Court handles cases under the Alabama Uniform Residential Landlord and Tenant Act.^[2]

Action Steps for Renters in Foreclosure

• Continue paying rent—if possible, to the new owner after foreclosure, or place it in escrow if instructed by the court.
• Request all notices in writing.
• Keep records of your lease, payments, and all communications.
• If you receive a court notice (Unlawful Detainer), respond promptly—either by going to court or filing an answer.
• Reach out for legal assistance if you are unsure of your rights.

Staying informed and organized can help protect your right to remain in your home during the foreclosure process.

Frequently Asked Questions

1. Can I be evicted immediately after a foreclosure in Alabama?
   No. The new owner must give you written notice to vacate, and if you have a lease, you may be allowed to stay until it expires or at least 90 days after the foreclosure.
2. What happens to my security deposit after foreclosure?
   The new owner is responsible for your security deposit. Get written documentation showing who holds your deposit.
3. If I pay rent month-to-month, how much notice must I get?
   You must receive at least 90 days’ written notice to move out after the foreclosure sale.
4. Which court handles eviction after a foreclosure?
   The District Courts of Alabama manage eviction actions, including those after a foreclosure. Find your local court at the Alabama Court System website.
5. Do I still have to pay rent if the property is foreclosed?
   Yes, you are still required to pay rent according to the terms of your lease or rental agreement until you are lawfully evicted.

Key Takeaways for Renters

• Renters in Alabama cannot be required to move out immediately after a foreclosure—proper written notice and court proceedings are required.
• Month-to-month tenants usually get at least 90 days’ notice; fixed leases may allow you to stay until the lease ends.
• Always respond to court documents promptly and keep communication records.

Understanding these rules can help renters remain protected during difficult foreclosure situations.

Need Help? Resources for Renters

• Alabama Attorney General’s Landlord-Tenant Information – Questions about rental rights and landlord obligations
• Legal Services Alabama – Free or low-cost legal assistance for eligible renters
• Alabama Unified Judicial System – Civil Forms – Access to Unlawful Detainer forms and more
• Alabama District Courts – Locate your local court for eviction cases
• HUD Alabama Rental Resources – Federal information on tenant rights during foreclosure

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1. Protecting Tenants at Foreclosure Act (PTFA), Public Law No: 111–22
2. Alabama Uniform Residential Landlord and Tenant Act, Code of Alabama §§ 35-9A-101 et seq.

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