This explantation of the Alabama Right of Redemption is from Julie Martin, the broker at Port City Realty. Julie Martin is not an attorney and if you have further questions you should consult an attorney.
In Alabama there is a 1 Year Right of Redemption. This is a right of former property owners and their lien holders when a property has been foreclosed on. It is rare that this right is exercised, but it is a possibility, so if you buy a foreclosure you need to be aware of it.
The amount to redeem a property is:
the amount of the foreclosure + taxes + insurance + necessary, permanent improvements + interest.
Since the biggest concern of the buyer is losing the property within the 1 year right of redemption the two most important things to know are - the date of the foreclosure and the amount of the foreclosure.
If the price the buyer pays for a foreclosure is below the price of the foreclosure and the buyer does not make un-neccessary improvements during the redemption time this further reduces chance the buyer will lose any money in the case of a redemption.
The risk of losing is greater if the buyer pays more than the amount of the foreclosure or makes major improvements during the redemption period.
This information is meant as a guide. Although deemed reliable, information may not be accurate for your specific market.