HB701 Alabama 2010 Session

Summary

Primary Sponsor

Todd Greeson

Republican

Session

Regular Session 2010

Title

Commercial property, right of redemption, time period reduced, Sec. 6-5-248 am'd.

Summary

HB701 would shorten the commercial property redemption period after foreclosure from one year to 90 days, while keeping residential redemption at one year, and update related redemption rules.

What This Bill Does

The bill amends Section 6-5-248 to set a 90-day redemption window for commercial property (residential property remains 1 year), with commercial mortgage redemptions after the effective date set at 90 to 180 days. It clarifies who may redeem (debtors, mortgagors, their transferees, spouses, children, heirs, devisees, and others such as judgment creditors and junior mortgagees) and describes how redemption interacts with existing liens and priorities. It requires that when redemption occurs, all higher-priority recorded judgments, mortgages, and liens are revived as lawful charges to be paid at redemption, and it outlines limits on redemption by parties other than the debtor or mortgagor. The act also states the effective date as the first day of the third month after passage and governor approval.

Who It Affects

• Debtors, mortgagors, and their transferees (including their spouses, children, heirs, or devisees) who may redeem the property and whose redemption rights are narrowed to a 90-day window for commercial property.
• Judgment creditors, junior mortgagees, lienholders, transferees, and other redeeming parties who may redeem and whose rights, priorities, and the revival of liens at redemption are impacted by the new rules.

Key Provisions

• Redemption period for commercial property shortened to 90 days from sale; residential property remains 1 year; commercial mortgages executed after the act’s effective date have a redemption window of 90 to 180 days.
• Residential development and residential property mortgages are not considered commercial mortgages under this act.
• If redemption occurs, all recorded judgments, mortgages, and liens with higher priority are revived as lawful charges to be paid off at redemption.
• A redemption by a party other than the debtor or mortgagor (and their related spouses, children, heirs, or devisees) precludes further redemption by that party.
• Mortgagor and debtor have priority over other redeeming parties, with mortgagor having priority over the debtor.
• Effective date: the act becomes law on the first day of the third month after it is passed and approved by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal