Marcus purchased a non-homestead residential investment property in Birmingham with a mortgage loan. He later defaulted, and the lender completed a judicial foreclosure sale on March 15, 2024. The property was not Marcus's principal residence at the time of sale. Under current Alabama law, until what date does Marcus retain the statutory right to redeem the property?
Correct Answer
B) March 15, 2025 — one year after the foreclosure sale
Under Ala. Code §6-5-248 as amended, the statutory right of redemption for non-homestead residential property is one year from the foreclosure sale. (Owner-occupied homestead residences have a shortened 180-day period.) Because Marcus's property was a non-homestead investment property, the one-year period applies, ending March 15, 2025.
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A lender in Huntsville has completed a judicial foreclosure sale on a residential property. The borrower wants to know the difference between the equitable right of redemption and the statutory right of redemption under Alabama law. Which statement correctly distinguishes the two?