Alabama is a power of sale state: the Code treats a power to sell in a mortgage or deed of trust as part of the security, and sets a published notice schedule where the instrument is silent. After a sale, listed parties can redeem within one year, or within 180 days for residential property with a homestead exemption. The Department of Revenue lists a recordation tax of $.15 per $100 of indebtedness on mortgages, and mechanic's lien deadlines run from six months to 30 days depending on the claimant, which matters for draw timing.
World's Fair Capital makes business purpose loans to real estate investors in Alabama: fix and flip, DSCR rental, bridge and ground-up construction. This page covers points that most often matter to an investor there, each checked against the statute or agency that publishes it. It is general information, not legal or tax advice, and terms for any loan are set at underwriting.
Prepared by the WFC editorial team. Facts checked against the cited sources, last reviewed 2026-10-11.
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- 3Underwriting
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- 4Closing
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What investors should know about Alabama
Power of sale is part of the security
Alabama's Code says a power to sell lands given in a mortgage or other conveyance that secures payment of money is part of the security. A conveyance made under that power vests legal title in the purchaser.
Source: Code of Alabama 35-10-1, checked 2026-10-11
Sale notice where the instrument is silent
If a deed of trust or mortgage with power of sale is silent on place, terms or notice, the statute allows a sale at the county courthouse door after 30 days' notice, published once a week for four consecutive weeks in a county newspaper.
Source: Code of Alabama 35-10-2, checked 2026-10-11
Redemption window after a sale
Alabama's redemption statute lets listed parties redeem sold real estate within 180 days for residential property with a homestead exemption claimed that tax year, or within one year of the sale for all other property.
Source: Code of Alabama 6-5-248, checked 2026-10-11
Mortgage recording tax
The Alabama Department of Revenue lists a recordation tax on mortgages of $.15 per $100 of indebtedness or fraction thereof, and says it also applies to deeds of trust. The page states a rate and does not list a cap.
Source: Alabama Department of Revenue, Recordation Tax (Code of Alabama 40-22-1 to 40-22-12), checked 2026-10-11
Mechanic's lien filing deadlines
A mechanic's lien statement must be filed within set periods after the last work or materials: six months for original contractors, 30 days for journeymen and day laborers, and four months for other lien claimants. Missing the deadline loses the lien.
Source: Code of Alabama 35-11-215, checked 2026-10-11
River flooding history
The National Weather Service's Alabama flood page documents major river flooding in the state, including a March 1929 flood it describes as one of the greatest in Alabama and flooding tied to the remnants of Tropical Storm Alberto in 1994. Flood zone status is worth checking property by property.
Source: National Weather Service, Floods in Alabama, checked 2026-10-11
General information, not legal or tax advice. Confirm details with your own counsel or title agent.
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What to send for a first look
- Property address and type
- Purchase price, or current value on a refinance
- Loan amount requested and what it is for
- Rehab or construction budget, if any
- Current or expected rent on a rental
- The borrower's experience and estimated credit score
- Your timeline to close
Loan programs for Alabama investors
- Hard Money Loans
- Fix & Flip Loans
- Rental / DSCR Loans
- Ground-Up Construction Loans
- Commercial Bridge Loans
- Multifamily Bridge Loans
- Small Balance Commercial Loans
- Foreign National Loans
- FlexCap Business Bridge Loans
Program availability varies by property and borrower. Business purpose loans only.
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Rates, fees, terms, timelines, and program descriptions are subject to change without notice.
Any investor-related or capital discussion is not an offer to sell, a solicitation to buy, or a recommendation of any security or investment product.