Help with Redemption of Rental Property in Alabama

[Hallie Renee Conway]

We bought a rental house in Alabama that had been a foreclosure and it was still during the 1 year Right of Redemption period when we bought it. It was foreclosed for 75k, someone flipped the property and we bought it for 200k from them. A company called Asset Preservations bought the Right of Redemption from the foreclosure owner and is now trying to redeem it from us and refused to pay more than 100k during mediation and we have a trial set for July 29th. He says he doesn't have to pay us capital expenses because we didn't actually pay that, the previous owner did. According to our lawyer and case study, our base starting pay back is the 75k + taxes, interest, and insurance and not the 200k we paid so we subpoenaed the previous owner for all of his figures he spent renovating the house. Our mortgage is 150k so I am not sure what will happen if he only gives us 100k. We can't give him a clear title if we can't pay off the mortgage. We also don't have a redemption bond, our mortgage company didn't require it and we didn't even know about it honestly when we bought the property back in 2022 (we've waited this long for mediation and a trial date). Is that a fault of the mortgage company that we didn't get a redemption bond? I suppose we should have done more research but we've bought a foreclosure in the past with no problems and didn't think that would happen, and we assumed that he would have to pay us what we paid for it! My husband and I have 5 rentals, we are not super experienced and just started buying some real estate in 2019. 

He said he would appeal and appeal and appeal until he got it for 100k. Perhaps he just said that to scare us. We've looked at our title insurance and home owners insurance and umbrella policy with no help. PLEASE HELP! Does anyone have any experience with this that can help us?