What does Alabama right of redemption law mean exactly?

Asked by Toni, 72364 Thu Aug 23, 2012

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Mary McNair’s answer
Mary McNair, Agent, Fairhope, AL
Thu Aug 23, 2012
Another critical thing to be aware of when buying a foreclosure is that you don't get clear title until the one-year anniversary of the property being sold on the courthouse steps (i.e. foreclosure sale).

You'd have to keep detailed records of everything you did to the house to make it safe to occupy. Things like changing out functional countertops with granite may not be considered a reimbursable expense if it was a preference change. But fixing the roof, replacing appliances that weren't working or unsafe, replacing carpet that was beyond salvage, etc., are examples of things that should be reimbursable, but you have to prove it was necessary. So take lots of pictures of the before to back up your case.

The longer a property has been on the market, the less likely you would have to give up your home. But it does happen, although very rarely. You basically have to ask yourself if you are willing to risk being one of the very few that it does happen to.

Also, don't assume foreclosures are the best deals. It can be worth paying a little more to own it with a clear title from day one.

Give me a call if I can help you with your home search.
0 votes
Thank you. This is very helpful.
Flag Fri Aug 28, 2015
81961cowboy, Home Buyer, New York, NY
Wed Jun 10, 2015
If you purchase the home from a 3rd party are you reimbursed the money you invested ...down payment house payments this was not covered in your answer
1 vote
Aaron Sims, , Birmingham, AL
Thu Aug 23, 2012
Toni, in Alabama someone who has had property forclosed on has 1 year from the date of the forclosure auction to redeam the property. I've heard that the percentage of properties that are actually redeemed is very low, though I've not seen any hard numbers, possibly someone out there has some. Are you asking what it means to someone who has been forclosed on, or to someone looking at a home that still has a year or less of redemption left?
1 vote
a home that still has a year or less of redemption left.
Flag Thu Jan 28, 2016
Karen Parker, Home Buyer, Ashford, AL
Sat Dec 5, 2015
Will I get any of my payment or down payment back? The one year start from the time it was foreclosed on?
0 votes
Aaron Sims, , Birmingham, AL
Thu Aug 23, 2012
As a buyer it means that the homeowner that was forclosed on has one year to take back ownership of the property. This impacts you the purchaser several ways.
The owner can exercise their right of redemption. They would do this by satisfying the amount owed. Plus have to reimburse the new owner for "needed repairs" I believe its worded.
Whatever the property went for at the auction will be the highest amount a lender would finance as its the most they could recoup if it was redeemed. I learned this the hard way once.
I would consult a Real Estate Attorny prior to any purchase to verify your rights in the event of redemption. Again it is rare from my understanding, that doesn't mean not to be sure you are covered.
Good luck!
0 votes
When does the start date begin counting down? From the date the bank evicted homeowners or from date it is sold to another party?
Flag Sun Aug 14, 2016
Toni, Home Buyer, 72364
Thu Aug 23, 2012
What does it mean for a home buyer when there is a right of redemption on the property?
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more