Redemption of Real Estate.

Ala. Code tit. 6, ch. 5, art. 14A

in effect

Ala. Code § 6-5-247 Definitions.

6-5-247. Definitions. Unless the context otherwise requires, the words defined in this section shall have the following meanings when found in this article: (1) SALE or SOLD. Any execution, judgment, or foreclosure sale, whether the sale is made under any power of sale in any mortgage or deed of trust or statutory power of sale, or by virtue of any judgment in any court of competent jurisdiction. (2) MORTGAGE. Any mortgage, deed of trust, or any other instrument intended to secure the payment of money, such as an instrument which includes a vendor’s lien. (3) JUNIOR MORTGAGE. Any mortgage, deed of trust, or any other instrument intended to secure the payment of money by the transfer of an interest in real property, such as a conveyance which includes a vendor’s lien, which are lower in priority than the foreclosed mortgage or lien. (Acts 1988, No. 88-441, p. 647, §1.)

Ala. Code § 6-5-248 Who May Redeem; Priorities.

6-5-248. Who May Redeem; Priorities. (a) Where real estate, or any interest therein, is sold, it may be redeemed by: (1) Any debtor, including any surety or guarantor. (2) Any mortgagor, even if the mortgagor is not personally liable for payment of a debt. (3) Any junior mortgagee, or its transferee. (4) Judgment creditor, or its transferee. (5) Any transferee of the interests of the debtor or mortgagor, either before or after the sale. A transfer of any kind made by the debtor or mortgagor will accomplish a transfer of the interests of that party. (6) The respective spouses of all debtors, mortgagors, or transferees of any interest of the debtor or mortgagor, who are spouses on the day of the execution, judgment, or foreclosure sale. (7) Children, heirs, or devisees of any debtor or mortgagor. (b) All persons named or enumerated in subdivisions (a)(1) through (a)(7) may exercise the right of redemption granted by this article within 180 days from the date of the sale for residential property on which a homestead exemption was claimed in the tax year during which the sale occurred, or within one year from the date of the sale for all other property. (c)(1) When any judgment creditor or junior mortgagee or any transferee of a judgment creditor or a junior mortgagee redeems under this article, all recorded judgments, recorded mortgages, and recorded liens having a higher recorded priority in existence at the time of the sale are revived against the real estate redeemed and against the redeeming party and such shall become lawful charges pursuant to Section 6-5-253(a)(4) to be paid off at redemption. (2) Once any lienholder, recorded judgment creditor, or junior mortgagee is paid the amount of the person’s debt and any accrued interest and other contractual charges, the person has no further right to redeem. (3) Any lienholder, recorded judgment creditor, or junior mortgagee with a lower recorded priority may redeem from those having a higher recorded priority who have redeemed. (d) When any debtor, mortgagor, their transferees, their respective spouses, children, heirs, or devisees redeem, all recorded judgments, recorded mortgages, and recorded liens in existence at the time of the sale are revived against the real estate redeemed and against the redeeming party and further redemption by some party other than the mortgagor or debtor under this article is precluded. (e)(1) When any debtor or mortgagor conveys his or her interest in property subject to a mortgage prior to sale wherein he or she is released from liability for the debt, his or her right of redemption under this article is terminated. In the same manner, the right of redemption granted under this article to the spouses, children, heirs, or devisees of debtors or mortgagors terminates when the debtors or mortgagors have conveyed their interests in the property and are released from liability for the debt. (2) However, where debtors or mortgagors have conveyed their interests in the property but remain liable on the debt and are debtors at the date of the foreclosure sale, the debtors and mortgagors retain their right of redemption under this article and in the same manner, their spouses, children, heirs, or devisees continue to be entitled to the right of redemption under this article. (f) A redemption made by any person under this article, other than the debtors or mortgagors and their respective spouses, children, heirs, or devisees, shall preclude any further redemption by the person. (g) Subject to subsection (e), a mortgagor and debtor have priority over any other redeeming party and a mortgagor has priority over a debtor. (h) The mortgagee who forecloses residential property on which a homestead exemption was claimed in the tax year during which the sale occurred shall give notice to the mortgagor who signed the mortgage in substance as follows: “Alabama law gives some persons who have an interest in property the right to redeem the property under certain circumstances. Programs may also exist that help persons avoid or delay the foreclosure process. An attorney should be consulted to help you understand these rights and programs as a part of the foreclosure process.” This notice shall be mailed to the mortgagor at the address of the property subject to foreclosure at least 30 days prior to the foreclosure date by certified mail with proof of mailing. This notice also shall be included in the notice required pursuant to Section 35-10-13. For foreclosed residential property on which a homestead exemption was claimed in the tax year during which the sale occurred, the period of time during which a right of redemption may be exercised shall not begin until notice is given in accordance with this subsection; provided that under no circumstances may a right of redemption be exercised later than one year after the date of foreclosure. A defective notice, or the failure to give notice, will not affect the validity of the foreclosure, including the transfer of title to the property. Possession or production of the proof of mailing of this notice shall constitute an affirmative defense to any action related to the notice requirement. All actions related to the notice requirement must be brought within one year after the date of foreclosure or the action shall be barred. (Acts 1988, No. 88-441, p. 647, §2; Act 2015-79, p. 283, §1; Act 2018-126, §1.)

Ala. Code § 6-5-248.1 Application of Act 2015-79.

6-5-248.1. Application of Act 2015-79. (a) The amendments to Sections 6-5-248, 6-5-252, and 8-1-172, by Act 2015-79 are prospective and shall not apply to the following: (1) Sales made under a power of sale contained in any mortgage or junior mortgage dated prior to January 1, 2016. (2) Sales made pursuant to a statutory power of sale with respect to any mortgage or junior mortgage dated prior to January 1, 2016. (3) Sales by virtue of a judgment rendered by a court prior to January 1, 2016. (b) Except as provided in subsection (a), the amendments in Sections 6-5-248, 6-5-252, and 8-1-172 reducing the period during which a person is required to exercise the right of redemption or file his or her complaint shall apply to all sales of property foreclosed under a mortgage or sold by virtue of a judgment. (Act 2015-79, §2.)

Ala. Code § 6-5-249 Rights Under This Article Extended to Executors and Administrators.

6-5-249. Rights Under This Article Extended to Executors and Administrators. (a) The rights of redemption secured by this article may be asserted, within the time limit provided, by (1) the executor or administrator of any debtor or by the debtor’s heirs or devisees; (2) the executor or administrator of any mortgagor or by the mortgagor’s heirs or devisees; (3) the executor or administrator of any transferees, assignees, or vendees of the debtors or mortgagors or by their heirs or devisees; or (4) the executor or administrator of any judgment creditor or junior mortgagee of the debtor or their transferees. (b) The rights of redemption, secured by this article may be asserted, within the time limit provided, against (1) the executor or administrator of any junior mortgagee or transferees or assignees of the junior mortgagee; (2) the executor or administrator of any judgment creditor or transferees or assignees of any judgment creditor; (3) the executor or administrator of the purchaser of the land or the executor or administrator of any assignee or transferees of the purchaser. (Acts 1988, No. 88-441, p. 647, §3.)

Ala. Code § 6-5-250 Characterization of Rights of Redemption Under This Article.

6-5-250. Characterization of Rights of Redemption Under This Article. The statutory rights of redemption given or conferred by this article are mere personal privileges and not property or property rights. The privileges must be exercised in the mode and manner prescribed by statute and may not be waived in a deed of trust, judgment, or mortgage, or in any agreement before foreclosure or execution sale. The right of privilege conferred under this article is not subject to levy and sale under execution or attachment nor is it subject to alienation except in the cases provided for in this article; but if the right or privilege is perfected by redemption as provided in this article, then, and not until then, it becomes property or rights of property subject to levy, sale, alienation, or other disposition, except as is expressly authorized by statute. (Acts 1988, No. 88-441, p. 647, §4.)

Ala. Code § 6-5-251 Delivery of Possession to Purchaser on Demand.

6-5-251. Delivery of Possession to Purchaser on Demand. (a) The possession of the land must be delivered to the purchaser or purchaser’s transferees by the debtor or mortgagor if in their possession or in the possession of anyone holding under them by privity of title, within 10 days after written demand for the possession has been made by, or on behalf of, the purchasers or purchaser’s transferees. (b) If the land is in the possession of a tenant, written notice must be given to the debtor or mortgagor, and the debtor or mortgagor must direct the tenant to deliver possession or recognize the purchaser as his or her landlord in the event the lease antedates the mortgage, judgment, or levy. If the debtor or mortgagor cannot be found, notice to the tenant is sufficient and he must deliver possession within 10 days. (c) Failure of the debtor or mortgagor or anyone holding possession under him or her to comply with the provisions of this section forfeits the right of redemption of the debtor or one holding possession under the debtor. (Acts 1988, No. 88-441, p. 647, §5.)

Ala. Code § 6-5-252 Demand for Statement of Debt and Lawful Charges by Person Entitled to Redeem.

6-5-252. Demand for Statement of Debt and Lawful Charges by Person Entitled to Redeem. Anyone desiring and entitled to redeem may make written demand of the purchaser or his or her transferees for a statement in writing of the debt and all lawful charges claimed by him or her, and the purchaser or their transferees shall, within 10 days after the written demand, furnish the person making the demand with a written, itemized statement of all lawful charges claimed by him or her. The redeeming party must then tender all lawful charges to the purchaser or his or her transferee. If the purchaser or his or her transferee fails to furnish a written, itemized statement of all lawful charges within 10 days after demand, he or she shall forfeit all claims or right to compensation for improvements, and the party so entitled to redeem may, on the expiration of the 10 days, file his or her complaint without a tender to enforce his or her rights under this article and file a lis pendens with the probate court. Tender 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. (Acts 1988, No. 88-441, p. 647, §6; Act 2015-79, §1.)

Ala. Code § 6-5-253 Payment or Tender of Purchase Money and Other Lawful Charges, with Interest.

6-5-253. Payment or Tender of Purchase Money and Other Lawful Charges, with Interest. (a) Anyone entitled and desiring to redeem real estate under the provisions of this article must also pay or tender to the purchaser or his or her transferee the purchase price paid at the sale, with interest at the rate allowed to be charged on money judgments as set forth in Section 8-8-10 (as it is now or hereinafter may be amended), and all other lawful charges, also with interest as aforesaid; lawful charges are the following: (1) Permanent improvements as prescribed herein. (2) Taxes paid or assessed. (3) All insurance premiums paid or owed by the purchaser. (4) Any other valid lien or encumbrance paid or owned by such purchaser or his or her transferee or if the redeeming party is a judgment creditor or junior mortgagee or any transferee thereof, then all recorded judgments, recorded mortgages, and recorded liens having a higher priority in existence at the time of sale which are revived under Section 6-5-248(c). If the redemption is made from a person who at the time of redemption owned the debt for which the property was sold, the redemptioner must also pay any balance due on the debt, with interest as aforesaid thereon to date. (5) Mortgagees of the purchaser, or their transferees, are considered transferees of the purchaser, and a party redeeming must pay all mortgages made by the purchaser or his or her transferee on the land to the extent of the purchase price. If the purchaser’s mortgages do not exceed the amount of the purchase price, the balance must be paid to the purchaser. (b) If the redeeming party is the debtor, mortgagor, their respective spouses, children, heirs, or devisees then, unless otherwise provided herein, the judgments, mortgages, and liens revived pursuant to 6-5-248(d) are not lawful charges as defined in subsection (a). (c) The purchaser shall be entitled to all rents paid or accrued including oil and gas or mineral agreement rentals to the date of the redemption, and the rents must be prorated to such date. The purchaser or his or her transferee and his or her tenants shall have the right to harvest and gather the crops grown by them on the place for the year in which the redemption is made, but must pay a reasonable rent for the lands for the proportion of the current year to which such redemptioner may be entitled. (d) Any one entitled and desiring to redeem shall be granted a credit as against the amount of money required to be paid for redemption as follows: (1) For all timber cut or sold on the land by the purchaser or his or her transferees, during the statutory period of redemption. (2) For any oil and gas, minerals (including coal bed gas), sand, and gravel, taken from the land or sold, and for advanced royalties or bonuses received by the purchaser or his or her transferees, during the statutory period of redemption. (3) To the extent the value of the property is diminished when any structures or buildings are changed, removed, demolished, or destroyed by the purchaser or his or her transferees during the statutory period of redemption. (Acts 1988, No. 88-441, p. 647, §7; Acts 1989, No. 89-525, p. 1074, §1.)

Ala. Code § 6-5-254 Payment of Value of Permanent Improvements; How Value of Improvements Ascertained.

6-5-254. Payment of Value of Permanent Improvements; How Value of Improvements Ascertained. (a) Any person offering to redeem must pay to the then holder of the legal title the value of all permanent improvements made on the land since the sale, and if the holder of the legal title cannot be ascertained, payment may be made to the circuit court of the county having jurisdiction of the subject matter when the complaint is filed to redeem. In response to written demand made under Section 6-5-252, the then holder of the legal title shall, within 10 days from the receipt of such demand, furnish the proposed redemptioner with the amount claimed as the value of such permanent improvements; and within 10 days after receipt of such response, the proposed redemptioner either shall accept the value so stated by the then holder of the legal title or, disagreeing therewith, shall appoint a referee to ascertain the value of such permanent improvements and in writing notify the then holder of the legal title of his or her disagreement and of the fact and name of the referee appointed by him or her. Within 10 days after the receipt of such notice, the then holder of the legal title shall appoint a referee to ascertain the value of the permanent improvements and advise the proposed redemptioner of the name of the appointee. The two referees shall, within 10 days after the then holder of the legal title has appointed his or her referee, meet and confer upon the award to be made by them. If they cannot agree, the referees shall at once appoint an umpire, and the award by a majority of such body shall be made within 10 days after the appointment of the umpire and shall be final between the parties. (b) If a person offering to redeem fails or refuses to nominate a referee as provided in subsection (a) of this section, he or she must pay the value put upon the improvements by the then holder of the legal title. If the then holder of the legal title fails or refuses to appoint a referee, as provided in subsection (a) of this section, the then holder of the legal title shall forfeit his or her claim to compensation for such improvements. The failure of the referees, or either of them, to act or to appoint an umpire shall not operate to impair or to forfeit the right of either the proposed redemptioner or of the then holder of the legal title in the premises; and, in the event of failure without fault of the parties to effect an award, the appropriate court shall proceed to ascertain the true value of such permanent improvements and enforce the redemption accordingly. (Acts 1988, No. 88-441, p. 647, §8.)

Ala. Code § 6-5-255 Failure or Refusal of Purchaser to Reconvey Title.

6-5-255. Failure or Refusal of Purchaser to Reconvey Title. If the purchaser or his or her vendee or transferee fails or refuses to reconvey to such party entitled and desiring to redeem such title as the party acquired by the sale and purchase, such party so paying or tendering payment shall thereupon have the right to file in the circuit court having jurisdiction thereof a complaint to enforce his or her rights of redemption. (Acts 1988, No. 88-441, p. 647, §9.)

Ala. Code § 6-5-256 Settlement and Adjustment of Rights and Equities by Circuit Court When Complaint Filed.

6-5-256. Settlement and Adjustment of Rights and Equities by Circuit Court When Complaint Filed. Upon the filing of any complaint as provided in these sections and paying into court the amount of purchase money and the interest necessary for redemption and all lawful charges, if the written statement thereof has been furnished or, if not furnished, offering to pay such debt or purchase price and all lawful charges, the circuit court shall take jurisdiction thereof and settle and adjust all the rights and equities of the parties, as provided in this article. (Acts 1988, No. 88-441, p. 647, §10.)

Ala. Code § 6-5-257 Applicability.

6-5-257. Applicability. This article applies only to mortgages foreclosed after January 1, 1989. (Acts 1988, No. 88-441, p. 647, §11.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026