Under current Alabama law, an interested party (e.g., mortgagor, junior mortgagor, judgment creditor) may redeem real property sold at foreclosure within one (1) year of the date of the foreclosure sale. See ALA.CODE §§6-5-248,6-5-252. The current redemption law does not require the foreclosing entity to provide notice to the owner of a homestead property (or any type of property for that matter) being foreclosed that the owner may be able to redeem the property from foreclosure.
On April 23, 2015, the Alabama legislature enacted a new right of redemption law, Act of Apr. 23, 2015, Alabama Senate Bill No. 124, Ala. Acts, 2015-79 (codified as amended at ALA.CODE §§6-5-248,6-5-252),which reduces the redemption period for homestead properties (other types of property are unaffected by this new law) from one (1) year to 180 days from the date of the foreclosure sale, provided the requisite notice is given. This new law goes into effect on January 1, 2016. The specific changes found in the new redemption law are outlined below. Under newly adopted § 6-5-252: T ender or suit shall be made or filed within 180 days from foreclosure for residential property on which a homestead exemption was claimed in the tax year during which the foreclosure occurred, or within one year from foreclosure for all other property.
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