Alabama HUD Homes for Sale (2026)
Search every active HUD foreclosed home in Alabama - 41 AL properties from HUD HomeStore, in one free interface.
HUD homes are foreclosed residential properties owned by the U.S. Department of Housing and Urban Development and sold through HUD HomeStore (hudhomestore.gov), typically below market value. GovAuctions indexes the Alabama HomeStore inventory and lets you search it with better filtering - bidding still happens on HomeStore through a HUD-registered broker.Last updated: 2026-09-22
Search all 41 HUD homes in Alabama by price & bedrooms
Filter the full HUD HomeStore inventory in the live feed
Recently Listed HUD Homes in Alabama
HUD Home — 216 Doyle Dr, Montevallo, AL 35115
Montevallo, AL
HUD Home — 102 W Forest Ave, Troy, AL 36081
Troy, AL
HUD Home — 19 41st St E, Tuscaloosa, AL 35405
Tuscaloosa, AL
HUD Home — 121 Old Thomaston Rd, Linden, AL 36748
Linden, AL
HUD Home — 1902 43rd St, Valley, AL 36854
Valley, AL
HUD Home — 51 Poplar Dr, Alexandria, AL 36250
Alexandria, AL
HUD Home — 8459 Grand Oaks Dr, Theodore, AL 36582
Theodore, AL
HUD Home — 124 Woodland Ter, Moulton, AL 35650
Moulton, AL
HUD Home — 55 Lazenby St, Monroeville, AL 36460
Monroeville, AL
HUD Home — 2606 Guenevere Ave SE, Huntsville, AL 35803
Huntsville, AL
HUD Home — 1030 W Green St, Marion, AL 36756
Marion, AL
HUD Home — 110 1st Pl SE, Arab, AL 35016
Arab, AL
Will you inherit back taxes on a property in Alabama?
It depends entirely on which kind of sale you are looking at, and the two are easy to mix up. Government REO (HUD, Fannie Mae, Freddie Mac, GSA, CWS) conveys with clear, insurable title and the seller settles past-due property taxes at closing. County tax sales (tax-defaulted, sheriff, judicial) are the opposite: the buyer can inherit senior liens, face a redemption period, and get title that is not insurable without a quiet-title action. Every listing on this page is the first kind.
For the tax-sale side, Alabama is a tax lien state. The county sells the unpaid tax debt, not the house. You buy a certificate that earns interest, and you only get the property if the owner never repays. The former owner then has 3 years to reclaim the property. Title here usually needs a quiet-title action before it is insurable or resellable.
We do not estimate what a specific property owes. Lien and back-tax amounts live in county records and only a title search returns the real number, so any figure produced without one is a guess you should not bid against.
HUD Homes in Other States
Frequently Asked Questions
- How many HUD homes are for sale in Alabama?
- There are 41 active HUD foreclosed homes listed in Alabama right now. The count changes as HUD lists new foreclosures and existing ones sell - GovAuctions refreshes the AL HUD HomeStore inventory throughout the day.
- How do I buy a HUD home in Alabama?
- Browse Alabama HUD listings here, then have a HUD-registered real estate broker submit your bid on hudhomestore.gov. Any agent whose brokerage holds a HUD NAID number can place the bid - you can't bid directly. During the first 15-30 days (the Exclusive Listing Period), only owner-occupants and nonprofits can bid; after that, investors can too.
- Are HUD homes in Alabama cheaper than market value?
- HUD homes in Alabama are often priced below comparable listings, with the biggest discounts during the extended (investor) bidding period. They're sold as-is, though - HUD does no repairs - so always inspect the property and factor repair costs into your offer.
- Do I inherit back taxes or liens on a HUD home in Alabama?
- No. A HUD home is REO, not a tax sale: it conveys with clear, insurable title, HUD settles past-due property taxes at closing, and there is no redemption period. That risk belongs to county tax sales instead, and Alabama is a tax lien state. The county sells the unpaid tax debt, not the house. You buy a certificate that earns interest, and you only get the property if the owner never repays. After such a sale the former owner has 3 years to reclaim the property. Title here usually needs a quiet-title action before it is insurable or resellable. None of that applies to a HUD purchase.