We have had several people inquire about foreclosed properties and exactly what the Alabama Right of Redemption Law means for them as buyers.

We decided we should share some basic information.  This is not legal advice and is for general information only.

What is a Redemption Period?

A period of time after foreclosure during which the homeowner or others may reclaim the property by paying the foreclosure sale price or sometimes the full amount owed to the bank plus certain other allowable charges.

Time Period

The right of redemption for residential property was one year until January 1, 2016.  There was a bill passed which changed the right of redemption for certain homesteaded properties.  This change only changed for homesteads' right of redemption with a mortgage created on or after January 1, 2016.

• If a mortgage was created before January 1, 2016, the right of redemption period is one year for all real property
• If the mortgage was created on or after January 1, 2016, the right of redemption period is six months for a homesteaded property

Alabama law requires the mortgagee or financial institution to provide notice to the mortgagor or homeowner of the foreclosed sale.  If the mortgagee fails to provide notice, the right of redemption start date does not begin until the notice requirements are met.  However, the law regarding notice states even if the notice is never corrected, the right of redemption period is one year from the foreclosure sale.

Two other important points to remember (1) inadequate notice does not invalidate the foreclosure sale (2) possession or production of proof of mailing notice is an affirmative defense if a lawsuit alleging inadequate notice is filed.

Who Can Redeem

There are seven categories of those entitled to redeem real estate after a foreclosure sale per Alabama law.

1. Debtors
2. Mortgagors
3. Junior mortgagees or transferees
4. Judgment creditors or transferees
5. Transferees of the interest of the debtor or mortgagor, either before or after the sale
6. Spouses of debtors, mortgagors, or transferees of a debtor or mortgagor, if married on the day of the foreclosure sale
7. Children, heirs, or devisees of a debtor or mortgagor

Redemption is rare and is rarely exercised as the party redeeming usually has to repay the purchaser of the property certain costs, including purchase price, insurance premiums, and permanent improvements.  

For more information regarding the law changes of Alabama Right of Redemption Act 2018-126 (HB 90)

Again, this is not intended to be legal advice and is for informational purposes only.  As always, if you feel you need more information, you should consult a licensed real estate attorney.

Read more about what is happening NOW at this pre-construction development! 

Gulf Views Monthly Update

Krystal Key Beach Resort News

Vacation rental company, Vacasa, just released its annual report ranking the 10 best places to buy a beach house in 2022. The news was published on March 10, 2022, in Travel + Leisure Magazine. The winner was a place we haven’t been able to stop talking about – it’s part of our stomping grounds: Gulf Shores, Alabama! 

Perdido Key, the location of Krystal Key Beach Resort is 12 miles to the east of Gulf Shores and the drive along this emerald coast is one of the most beautiful in the world. Of course, we know that and now the rest of the world does, too.

The article explained that condo or rental property owners can expect to make up to $56,198 in yearly rental income. From our experience, the annual income after expenses for our neck of the woods is much higher. Krystal Key Beach Resort, with its 4-bedroom floor plans, luxury amenities, and high-end appliances and interior finishes, will be among the highest-earning condos along the northern Gulf Coast. 

The median home sale price in the Alabama gulf coast area is around $402,905, significantly lower than other vacation destinations in the U.S. Gulf Shores/Perdido Key is the perfect combination of affordability and natural, unspoiled beauty. Our 30-unit development is on a pristine, 200-foot stretch of sand that will be private, and available only to our 30 units' residents and their guests. 

If you have been putting off your investment decisions, it is time to take another look at Krystal Key Beach Resort. We recommend you call us before the rest of the country snaps up the very last 4 condos that remain. The two penthouses are available. Both feature a total of 6 bedrooms, 5.5 baths, 3,950 interior square feet, and an additional 996 square feet of balcony that wraps around two sides of the building. Two interior units remain, both of these units are 4 bedrooms, 4 baths with 2300 square feet of interior space, and 660 square feet of balcony space.

Join us on the Gulf Coast and enjoy our uncrowded, relaxed atmosphere. We would love to welcome you home. 

Founded in 2012, Advantage Real Estate of Gulf Shores, a locally-owned firm created by Baldwin County Realtor and developer Rick Phillips and Realtor Cindy Stewart Phillips, marks nine years in business in 2021 with continued expansion and the development of a new resort project on the Florida Gulf Coast.

With more than 50 years of combined real estate experience among its principals, the family-run company also is launching a new website to better serve those looking to buy or sell a home or relocate to the Alabama and Northwest Florida Gulf Coast, purchase investment property such as condominium developments and waterfront homes, subdivision lots and new construction. The new website address is: www.gulffrontproperties.com.

A new development led by Advantage Real Estate is Krystal Key Beach Resort in Perdido Key, Fla. Located on 200 feet of beachfront on the Gulf of Mexico, the 10-story project will feature 30 four- and five-bedroom units all with direct, unobstructed views of the Gulf. The development is now in the pre-construction phase. The residences range from 2,340 square feet for a four bedroom to 3,909 square feet for the remaining Penthouse. Individual unit sales prices range from $1,395,000 to $2,995,000. Learn more about the project here: www.krystalkeybeachresort.com.

As many investors watch stocks, bonds and retirement plans dwindle, the question often becomes “How can we turn this around?”

One answer is real estate. It’s now possible to add real estate to your retirement portfolio through a self-directed Independent Retirement Account (IRA). And the fact that real estate prices haven’t co

mpletely rebounded from a decade ago is actually good news for investors.

Many real estate investments are still undervalued, which makes now the right time to 

buy. Infact, some of the most depressed real estate markets in the country are reporting an astonishing number of cash purchases. Much of this is coming from IRA owners moving investments into real estate.

Why? Because savvy investors understand real estate investments will increase in value over time at a much higher rate than other investments. While some IRA real estate investments have temporarily lost value, real property will never “vanish” like a failed company. History teaches us that real estate markets eventually bounce back.

Want to know more? Call us today to find the perfect investment property along the Alabama Gulf Coast or in Northwest Florida. With more than 50 years of combined experience in the local real estate market, we can even connect you with the best Self-Directed IRA custodian in the area.