Mortgage Laws
Alabama mortgage has been discussed here with respect to the laws relating
to mortgage practiced in the state of Alabama. These laws provide clear guidelines
to people opting for mortgage solutions in the U.S. state of Alabama.
- In Alabama, in case of default, the lenders may foreclose on mortgages
or deeds of trust using either judicial or non-judicial foreclosure process.
- The judicial process of foreclosure involving filing a lawsuit to obtain
a court order to foreclose is used where there is no 'power of sale' clause
in the mortgage or deed of trust.
- When no power of sale is present the lenders may, however, optionally
decide to forego a lawsuit and foreclose by selling the property as outlined
in the 'No Power of Sale Foreclosure Guidelines'.
- The Alabama legislature has accepted and given recognition to the need for
mortgage broker license in order to safeguard the consumer interests.
- The department shall either grant or deny the request for license within
90 days after receipt of a completed application for request for license together
with the following items:
- An investigation fee of $100 and an initial license fee of $500.
- A financial statement of the applicant prepared within 90 days of the filing
of the application and covering the most recent fiscal year preceding the date
of application, demonstrating that the applicant has a bona fide and verifiable
tangible net worth capital of at least $25,000.
- Three letters of reference regarding the good name and reputation of the
applicant in the community.
- Three reference letters about the experience and expertise of the applicant
from individuals/companies in the lending industry.
- As per the Alabama mortgage laws the licensees should:
- Disclose to the borrower in writing (before the collection of a mortgage
broker fee from a borrower) the nature of the mortgage broker's relationship
with the borrower and the method by which the mortgage broker will be compensated
for the services rendered.
- Act in accordance with the applicable federal and state disclosure laws, rules and regulations.
- Maintain an office premise in this state. The address of the office has to
be designated on the license certificate.
