Alabama extends right of redemption period

State Issues Mortgages Foreclosure Redemption State Legislation

On February 22, Alabama enacted HB 90, which amends the Code of Alabama section relating to the right of redemption on residential property. The amendment provides for a one-year right of redemption period after the foreclosure sale date. Alabama requires a mortgagee to mail a notice of a mortgagor’s right of redemption at least 30 days prior to the foreclosure sale, and the amendment allows the mortgagee to use the proof of mailing of the notice as an affirmative defense to any notice requirement action. Finally, the amendment reduces the time all actions related to the notice requirement must be brought from two years to one year after the date of foreclosure.