Shorten Alabama’s Post-Foreclosure Right of Redemption?


THIS POST IS NO LONGER RELEVANT. AS OF 1/1/2016, THE POST FORECLOSURE REDEMPTION PERIOD FOR ALABAMA RESIDENTIAL PROPERTIES WITH A HOMESTEAD EXEMPTION IS ONLY 180 DAYS. THE NEW RULE IS FOR MORTGAGES EXECUTED OR OR AFTER 1/1/2016.  ~ Denise

Currently, the Alabama post-foreclosure right of redemption continues for a period of one year after the foreclosure auction.  There are increasing demands by lenders and investors to reduce the time period or eliminate it entirely.

Recently, the Alabama Association of Realtors conducted a survey among its members. The question was limited to rights of redemption after a residential property foreclosure.  I don’t think the survey made any distinctions among owner occupied homes, rental homes, or multi-family properties. I would guess that any legislation reducing redemption rights for residential properties would apply to owner-occupied single family homes up to fourplexes, but I don’t know for sure.

Here are the survey results:

1,382- Reduce to 90 days
364-Reduce to 180 days
255-Leave at 12 months

This is an important issue for all members of the real estate community and all real estate investors. If you have an opinion on this subject, please contact your state senator and representative, and any trade associations such as the Alabama Association of Realtors. The AAR Right of Redemption Task Force includes Richard Van Valkenburgh, Starke Irvine, Jim Lawrence, Charline Mathis, Becky Hancock, Mark Moody and Gina Grant.

Remember, if you do nothing, then you can’t complain about the results.