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Section 8 Ineligible

Alabama low income housing boards have been changing their policies, and will no longer accept properties for Section 8 housing if there are outstanding redemption rights. That means lender-foreclosed properties must wait out the six to twelve months of redemption, depending on whether it was homestead exempt or not.

Tax sale properties will need a quiet title order to be sure that all redemption rights have expired.

A faster solution is to get a quitclaim deed from the former owner (or heirs) or a release of their redemption rights.

The reasoning is that the Housing Authority does not want to put a family into a Section 8 home, and then have them disrupted later when they have to move because of redemption. Yes, I know redemptions rarely occur with lender foreclosures, but the risk is still there.  In addition to the cost and disruption of the actual move, replacement housing might not be available in the same area, or at all.