Rights of Redemption AFTER Foreclosure on RENTAL USE property

[Michael Morrongiello]

Question;

If we purchase a DOT - Deed of Trust & Note on a RESIDENTIAL property in Alabama where the Borrower is or was an ENTITY (an LLC) and the property is being used for RENTAL INVESTMENT PURPOSES (not as owner occupants); If it goes to FORECLOSURE and we repossess the property; Does the prior owner (the LLC Entity) still have a RIGHT OF REDEMPTION Period of time AFTER the we've completed the foreclosure and repossessed the property?

[Denise Evans]

I'd like to correct some statements in @Fernando Alonso post. Tax sale redemption rights can be far longer than 3 years.  The interest rate after a lender foreclosure has been 7.5% for many years now.  Payment for improvements is based on the value those improvements added to the property, not the cost of the improvements. Valuation does not require an appraiser, but that is the recommended best method.  Redemption is not uncommon with investment properties because the borrower can often sell their right of redemption to another investor, who then has the right to exercise it.  In fact, redemption is probably more common with investment properties than with owner occupied residential properties, but that is just based on anecdotal evidence, not actual numbers.  As far as coming up with enough money to stop the auction, once the loan has been accelerated in Alabama, only payment in full will stop the auction, or a voluntary agreement by the lender to pause while a short sale or something similar is negotiated.  I doubt a waiver of post foreclosure redemption rights would be enforceable, because they do not even come into existence until after the foreclosure, so there is nothing to waive at the time the mortgage is executed.