In Alabama, there are two types of redemption. The equitable right of redemption is the right of the homeowner to pay off the loan plus the fees that the lender tacks on for processing the foreclosure. The homeowner has the right to pay this off right up until the moment the property is sold at auction.
The statutory right of redemption is what you’re concerned with if you’re buying a property that’s subject to redemption. In Alabama, the homeowner, as well as any other party that has an interest in the property (think second mortgage, ex-wife, contractor with a lien on the property) may redeem the property for a period of either 180 days or one year, depending on when the foreclosed mortgage was executed. In some states, one can simply buy out the homeowner’s right of redemption, but in Alabama, you can never really prevent redemption with a buy-out because you never know who might come out of the woodwork claiming they have an interest in the property.
To redeem in Alabama, the redeemer has to pay the purchase price paid at the auction plus the value of any improvements (not the cost of the improvements!) within the statutory timeframe.
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