Alabama Limits Foreclosure Redemption Period for Homestead Property

Alabama recently amended its real estate redemption law to limit the time period within which a borrower can redeem homestead property following foreclosure.  The amendments took effect on February 22, 2018.

Prior to amendment the law provided, in relation to homestead property, that the 180-day redemption period following the foreclosure sale of such property did not begin to run until the borrower was provided with a notice of their right to redeem the property (which must be mailed at least 30 days prior to the foreclosure date).  As amended, the law, while retaining the aforementioned redemption provision, now also provides that a right of redemption cannot be exercised, under any circumstances, more than one year from the foreclosure sale.

The law, as amended, also provides that possession or production of the proof of mailing of the requisite right of redemption notice constitutes an affirmative defense to any action related to the notice requirement. The amendments also shorten the time period within which an action may be brought relating to the notice requirement from two years to one year after the foreclose sale.

A copy of the amendments can be viewed here: https://legiscan.com/AL/text/HB90/2018.