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Shorten Alabama's Post-Foreclosure Right of Redemption?

Posted by 15789465 on

Currently, the Alabama post-foreclosure right of redemption continues for a period of one year after the foreclosure auction.  There are increasing demands by lenders and investors to reduce the time period or eliminate it entirely. Recently, the Alabama Association of Realtors conducted a survey among its members. The question was limited to rights of redemption after a residential property foreclosure.  I don't think the survey made any distinctions among owner occupied homes, rental homes, or multi-family properties. I would guess that any legislation reducing redemption rights for residential properties would apply to owner-occupied single family homes up to fourplexes, but I don't know for sure. Here are the survey results: 1,382- Reduce to 90 days 364-Reduce to 180 days 255-Leave at 12 months This is an important issue for all members of the real estate community and all real estate investors. If you have an opinion on this subject, please contact your state senator and representative, and any trade associations such as the Alabama Association of Realtors. The AAR Right of Redemption Task Force includes Richard Van Valkenburgh, Starke Irvine, Jim Lawrence, Charline Mathis, Becky Hancock, Mark Moody and Gina Grant. Remember, if you do nothing, then you can't complain about the results.

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4 comments

  • I would be very much against eliminating the ROR.
    I work fequently in GA where there is NO ROR and it causes some horror stories where some older citizens and estates are involved. Too short ROR
    also provides for some unscrupulous behavior.

    Bill Fowler on
  • I think that a year is really too long for the Redemption Period. I feel bad that so many people are losing their homes and I do think it is important to have some amount of time available. If the term was cut in half to 180 days, that should give enough time for a legitimate owner that lost the home to be able to reclaim it. Looking at it from an owner’s viewpoint, I think less than that time may not be adequate because of the amount of fees involved that they will have to come up with. But looking at it from the buyer’s perspective, it is really not fair to sell the home to them but then say that they can’t do any repairs that aren’t considered “necessary and acceptable” without fear of losing the home and not being able to recover a good portion of the amount of money they spent on fixing it up. Plus, it would not be a good feeling to know that anytime within the first year someone could come reclaim it and kick you out of the “home” that you have made for your family when you have not done anything to warrant it.

    Shannon Schwab on
  • Thanks for providing your phone number, Starke. Please call me at 205-310-3799. I have some ideas regarding how we can all make a more informed decision on this topic.

    deniselevans on
  • Thank you for putting this information out to your readers. If anyone wants to contact me they can…..251-621-1337.
    This is a ticklish topic as it deals with personal rights ,and is contrary to our Realtor Mission Statement. However, if we were to move forward it would appear that maybe a referendum vote may be in order or possibly a review of the whole banking procedure.

    starke on

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