If I am interested in purchasing a foreclosure, is there anything I can do to avoid the Alabama right of redemption?

Asked by Kristy, Fri Nov 18, 2011

I am a first time home buyer interested in purchasing a home in the Mobile County area (Alabama). I just want to make sure ahead of time (if I buy a foreclosure) if I would be at risk of loosing the property within the 1 year right of redemption period.

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Sat Nov 19, 2011
Right of Redemption is an AL state law and therefore cannot be avoided. The redemption period expires 365 days from the date of the foreclosure. Only if you purchase a propertyy 366+ days after the foreclosure date, do you no longer have to be concerned.

As Julie pointed out, the lower the amount, the greater the risk of the redemption. The reality is that if someone could not afford to make their monthly mortgage payment, it would not be very likely that they would be able to come up with the money to redeem the full amount.

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Rodney Mason, NMLS #151088
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Prospect Mortgage
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Prospect Mortgage offers a full selection of mortage programs including:
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1 vote
Port City Te…, Agent, Mobile, AL
Sat Nov 19, 2011
Since your biggest concern is losing the property within the 1 year right of redemption, the important things to know is the date of the foreclosure and the amount of the foreclosure. If you are purchasing a foreclosed property for $100,000 and the amount on the foreclosure deed is $150,000 you are at very little risk. However, if you are purchasing the property for $100,000 ad the amount on the foreclosure deed is $50,000 you are at greater risk. The amount to redeem is the amount on the foreclosure deed plus taxes, insurance and neccessary, permanent improvements plus interest.

I have several articles here on my Trulia blog concerning purchasing foreclosures plus I have a Foreclosure section on my website, that I have included below. I list foreclosures for Freddie Mac, banks and asset companies and I really enjoy working with buyers who are purchasing foreclosures. It is really fun to help someone get a really good deal! Call or email me any time you have any questions concerning foreclosures. I'd be happy to help.
1 vote
Parrish Walk…, Agent, Mobile, AL
Sat Nov 19, 2011
Every foreclosure in Alabama has a one year right of redemption, which begins at the date of foreclosure. The only way to avoid it is to purchase a foreclosure for which the rights have already expired. Another alternative is to focus on short sales. That is a distressed sale, like a foreclosure, but the homeowner is trying to avoid foreclosure by selling it for less than what he/she owes before it is foreclosed. If you purchase a short sale, you don't have to worry about rights of redemption at all.

I'd be happy to help you find a great home and answer any further questions you have. You can reach me at (251) 459-4764 or parrish@therealtyninja.com or http://www.facebook.com/propertyspecialist.
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