What is the right of redemption law in Alabama concerning the purchase of a foreclosed property?

02/01/2007 - Real Property - State: AL #1029

Full Question:

What is the current right of redemption law in Alabama concerning the purchase of a foreclosed property?

Answer:

In Alabama, a mortgagee holds legal title to the real property subject to the mortgagor's equitable right of redemption. Ala. Code § 35-10-26 (1993). Alabama foreclosure law provides that, upon a foreclosure sale, a mortgagor's equitable right of redemption ends. Foreclosure of a mortgage extinguishes the debt to the amount of the purchase price, if that amount is less than the debt, or extinguishes the entire debt if the purchase price is more than that amount. The purchaser at the foreclosure sale then holds legal title to the property, subject to the mortgagor's one year statutory right of redemption.



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02/01/2007 - Category: Real Property - State: AL #1029

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