Alabama Right of Redemption Law
With a large majority of homes on the market today that are foreclosures, I get asked these questions a lot. What is the Alabama right of redemption law? How does it work and what are the risk?
Alabama right of redemption law, is a law that allows homeowners to buy back their property if the bank foreclosures on them for late payments. The right of redemption law was originally designed to protect the homeowners from banks.
Banks at one time, many years ago were allowed to demand all their money within a 30 day period, whether the homeowners were behind on their mortgage or not. If the homeowners could not pay off the loan, or did not have enough time to refinance they would lose their homes. Banks were basically stealing homeowners properties for much less than the apprasied value.
The Federal goverment finally passed a law to stop the banks from using the demand clause, and could only demand their money if the homeowners was in default for non-payment. Many states including Alabama passed the right of redemption law giving the homeowner a chance to buy back, their home from the bank.
The market has changed, and there are more FORECLOSURES on the market today than ever before. The majority of homeowners who lose their homes today do not intend to use the Alabama right of redemptiion law. Most cannot afford to reedem them, and many simply dont want to.
The Alabama right of redemption law needs to be amended, or abolished all together.
Alice Broadway
website: www.alicebroadway.com
email me at: alice@alicebroadway.com
call me at: 228.623.5495
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