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Alabama Redemption Rights After a Foreclosure Sale
Alabama lets a former owner and certain others buy a home back after a foreclosure sale. Here is who can redeem, how long it lasts, what it costs and how the right can be lost.
Reviewed October 31, 2026 by George Lensch, broker, Wyze Realty. General information about Alabama, not legal, tax or financial advice.
Questions After a Foreclosure Sale?
Redemption is a legal matter for an attorney. If you are weighing whether the home is worth redeeming, we can tell you what it would likely sell for today.
This Guide Is General Information, Not Legal or Tax Advice
Wyze Realty is a real estate brokerage. We are not a law firm, CPA, lender or housing counselor, and we cannot tell you what to do about your specific legal, tax or financial situation. Talk to an Alabama real estate attorney about redemption deadlines, the statement of charges and possession; a probate attorney if heirs are involved.
Laws, deadlines and programs change, and the right answer depends on your documents and facts. Nothing here guarantees a result, a price or a timeline. We cite our sources at the bottom so you can check them.
Alabama lets a former owner, and certain others, buy a home back after a foreclosure sale. The right is set by statute, in Ala. Code 6-5-248 and the sections that follow it, and it is commonly called the statutory right of redemption. Many online summaries get it partly wrong. The period can be shorter or longer than people think, it does not always start on the sale date, it costs more than the auction price, and it can be lost in as little as 10 days.
This guide explains who can redeem, how long the right lasts, what it costs, how to demand the numbers, and how the right is lost. It is general information only. If a sale has happened, call an Alabama real estate attorney now, because the deadlines are short and the details depend on your documents.
Do I Still Have a Redemption Right?
Answer a few questions to see which rules likely apply to you and what to do next. It cannot tell you your exact deadline; an attorney can.
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Who Can Redeem
Under Ala. Code 6-5-248, the right of redemption belongs to:
- Debtors, including sureties and guarantors, and mortgagors. These have priority over the others.
- Junior mortgagees, such as the holder of a second mortgage or HELOC.
- Judgment creditors.
- Transferees of the debtor or mortgagor, meaning people the owner conveyed the property or the right to.
- The spouse of the debtor on the date of the sale.
- Children, heirs or devisees of the debtor.
A redeemer who is not a family member cannot redeem twice. If someone in your family has died and the home was foreclosed, heirs may have rights too; see our inherited house guide and talk to a probate or real estate attorney.
How Long the Right Lasts
| Property | Redemption period | Key conditions |
|---|---|---|
| Residential property on which a homestead exemption was claimed in the tax year of the sale | 180 days after the sale | The 180 days does not begin until the lender gives the required certified-mail redemption notice. Redemption can never be exercised more than one year after the sale. |
| All other property, such as rentals, land or a home without a homestead exemption that year | One year after the sale | The same possession rule applies: you can lose the right by not delivering possession within 10 days of a written demand. |
Mortgage date. The 180-day homestead period came from Act 2015-79, effective January 1, 2016. Secondary sources, including the Alabama REALTORS legal helpdesk and Nolo, say it applies to mortgages signed on or after January 1, 2016, and that older mortgages keep the one-year period. The codified statute text does not state that limit, so if your mortgage is older, confirm with an attorney which period applies.
Homestead exemption. The question is whether a homestead exemption was claimed for the tax year in which the sale happened. If you are not sure, your county's property tax office can tell you whether an exemption is on file. See behind on property taxes for more about exemptions.
The 30-Day Certified Notice
For homestead residential property, Ala. Code 6-5-248(h) requires the foreclosing lender to send the mortgagor a notice of redemption rights, in a form the statute prescribes, by certified mail at least 30 days before the sale. The notice must also be included with the published notice of sale. Here is why it matters:
- The 180-day redemption period does not begin until this notice is given.
- Even so, redemption can never be exercised more than one year after the sale. That outer limit, and a one-year deadline for lawsuits about the notice, came from a 2018 amendment (Act 2018-126); the earlier limit was two years.
- A missing or defective notice does not invalidate the foreclosure itself. Proof that the notice was mailed is a defense for the lender.
- A lawsuit over the notice must be filed within one year of the sale.
Keep the certified mail envelope and everything inside it. If you never received the notice, tell your attorney right away; the one-year deadlines apply either way.
A sale happened and you are trying to understand your rights? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.
What It Costs to Redeem
Redeeming is not as simple as paying what the buyer paid at the auction. Under Ala. Code 6-5-253, the redeemer generally pays:
| Item | What it means |
|---|---|
| The purchase price | What the buyer paid at the foreclosure sale. |
| Interest | Interest on the purchase price at the rate for money judgments under Ala. Code 8-8-10. |
| Permanent improvements | The value of permanent improvements the buyer made, subject to the statement rules below. |
| Taxes | Property taxes the buyer paid or that were assessed. |
| Insurance premiums | Premiums the buyer paid to insure the property. |
| Other liens | Other valid liens the buyer paid or owns, and certain purchaser mortgages up to the purchase price. |
There are offsets and special rules as well. The redeemer gets credit for timber or minerals taken from the property and for damage to structures. The buyer keeps rents, prorated to the redemption date. When a junior lienholder or judgment creditor redeems, revived senior liens are part of the cost. When the debtor or mortgagor redeems, revived junior liens are not part of the payment, but they stay attached to the property, so you would take the home back with those liens still on it.
How to Get the Exact Number
Ala. Code 6-5-252 gives you a way to demand the figure:
- Make a written demand. Send the buyer a written request for a statement of the lawful charges claimed. Use a trackable delivery method and keep a copy.
- The buyer has 10 days. The buyer must give you an itemized written statement within 10 days. If it does not, it forfeits compensation for improvements.
- If the buyer does not respond, you may file suit to redeem without first tendering the money, and you may file a lis pendens, a recorded notice of the lawsuit.
- Tender or sue in time. Payment or a suit must happen within the redemption period: 180 days for homestead property (counted as described above) or one year for other property.
An attorney should handle the demand and any suit. The steps are technical, and the deadlines do not stretch.
How the Right Is Lost
The 10-Day Possession Rule
This is the rule that surprises most people. Under Ala. Code 6-5-251, the debtor or mortgagor, and anyone holding under them, must deliver possession of the property within 10 days after a written demand from the buyer. Failing to do so forfeits the right of redemption. So the redemption period is not a period during which you can stay in the home; staying after a demand can end your right entirely.
If a tenant is in possession, the demand goes to the debtor or mortgagor, who must have the tenant deliver possession, or have the tenant recognize the buyer as landlord where the lease predates the mortgage. If the debtor cannot be found, notice to the tenant is enough, and the tenant must deliver possession within 10 days. Tenants should get their own legal advice.
Other Ways the Right Ends
- The redemption period runs out.
- The debtor conveys the property and is released from the debt (6-5-248(e)).
- Documents you sign after a sale, such as a deed, a release or a cash-for-keys agreement, may affect your rights. Have an attorney review anything a buyer or investor asks you to sign first.
Is Redemption Realistic?
For most former owners, redemption is hard to use. You need the full purchase price plus interest and charges, usually in cash or through financing that can be hard to arrange quickly. You may also have to leave the home within 10 days of a demand to keep the right alive. That is why acting before the sale, by applying for loss mitigation, selling, or exploring a short sale, almost always preserves more of your options and equity.
Still, the right has value in some situations, for example when there was substantial equity, when family members can help, or when the right itself is worth something to others. Whether and how a redemption right can be sold or assigned is limited and technical; get an attorney before agreeing to anything.
Be Careful With Post-Sale Offers
After a foreclosure sale, former owners sometimes receive offers to "buy your redemption rights" or to help them redeem for a fee. Some are legitimate and some are not. Never sign anything about your redemption rights, your deed or possession without an attorney reviewing it. See foreclosure rescue scams.
If the Sale Has Not Happened Yet
Redemption is the last resort, not the plan. If your sale is still ahead, read our options guide, check the timeline, and talk to a housing counselor this week.
Is your sale still ahead and you want to know whether selling first could work? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.
Common Questions
How long is the redemption period in Alabama?
180 days after the sale for residential property on which a homestead exemption was claimed in the tax year of the sale, and one year for all other property, under Ala. Code 6-5-248. For homestead property the 180 days does not start until the lender gives the required notice, and redemption can never be exercised more than one year after the sale.
Does the 180-day period apply to my older mortgage?
Secondary sources say the 180-day period from Act 2015-79 applies to mortgages signed on or after January 1, 2016, and that older mortgages keep one year. The codified statute does not state the date limit, so ask an attorney to confirm which applies to your mortgage.
Can I stay in the house during the redemption period?
Not safely. If the buyer gives you a written demand for possession and you do not deliver possession within 10 days, you forfeit your right of redemption under Ala. Code 6-5-251.
How much does it cost to redeem?
Generally the sale price, plus interest at the judgment rate, plus lawful charges such as permanent improvements, taxes, insurance premiums and certain liens the buyer paid, under Ala. Code 6-5-253. Credits and special rules apply, so get the itemized statement in writing.
How do I find out the exact redemption amount?
Send the buyer a written demand for a statement of the charges. Under Ala. Code 6-5-252, the buyer must give an itemized statement within 10 days or forfeit its claim for improvements, and you may then sue to redeem without first tendering payment.
What if I never got the certified redemption notice?
A missing or defective notice does not cancel the foreclosure, but it affects when the 180-day period starts. Redemption still cannot be exercised more than one year after the sale, and a lawsuit over the notice must be filed within one year. Talk to an attorney promptly.
Can my spouse or children redeem?
Yes. The spouse of the debtor on the sale date and the debtor's children, heirs or devisees are among those listed in Ala. Code 6-5-248. Debtors and mortgagors have priority.
Can I sell my redemption right?
Redemption rights can be transferred only in limited ways, and the rules are technical. Do not sign anything about your redemption rights without an Alabama attorney reviewing it.
Talk It Through, Confidentially
Big decisions are easier with someone in your corner. Whether you are ready to sell, still deciding, or just need to understand your options, call or schedule a time to talk. The first conversation is free, private and comes with no obligation. If what you really need is an attorney, a CPA or a housing counselor, we will tell you that and point you in the right direction.
Schedule a Confidential Call Call or Text (256) 808-6861
Sources
- Ala. Code 6-5-248, who may redeem and when (Justia, 2022 code)
- Ala. Code 6-5-251, possession demand and forfeiture (Justia, current code)
- Ala. Code 6-5-252, statement of charges (Justia, current code)
- Ala. Code 35-10-13, notice of foreclosure sale (Justia)
- Ala. Code 35-10-12, foreclosure deed (Justia)
Related Guides
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The Alabama Foreclosure Timeline, Stage by Stage
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Behind on Property Taxes
Madison County's tax lien sale, redemption, interest and homestead exemptions.
Wyze Realty LLC, Huntsville, Alabama. Information on this page is general and educational, is not legal, tax, financial or credit advice, and may not reflect the most current law. Consult an Alabama attorney, CPA or HUD-approved housing counselor about your situation. All real estate services are provided in accordance with the Fair Housing Act.