SB448 Alabama 2010 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2010

Title

Property sold for nonpayment of taxes, mortgagee, judgment creditor, or other creditor having a lien in the real estate lands sold for nonpayment of taxes may redeem the property in the name of the owner of the property, Secs. 40-10-120, 40-10-122 am'd.; Act 2009-508, 2009 Reg. Sess. am'd.

Summary

The bill would let lenders with a lien on property sold for nonpayment of taxes redeem the property in the owner's name.

What This Bill Does

It adds a new right for mortgagees, judgment creditors, and other lienholders to redeem tax-sold property in the owner's name. It keeps the owner's redemption window but allows lenders to redeem on behalf of the owner, with required notice and payment of past taxes and costs. It establishes a detailed process for valuing and paying for permanent and preservation improvements, including a referee/umpire system to settle disputes, and allows online redemption filings. It adds special charges in urban renewal areas, such as insurance premiums and improvement values, that must be paid as part of redemption.

Who It Affects

• Mortgagees, judgment creditors, and other lienholders with a lien on real estate sold for nonpayment of taxes, who gain the right to redeem in the owner's name.
• Property owners (and their heirs or personal representatives) whose land was sold for nonpayment of taxes, who face new redemption procedures, potential added costs in urban renewal areas, and online redemption options.

Key Provisions

• Section 40-10-120(a)(2): A mortgagee, judgment creditor, or other lienholder may redeem the property in the owner's name.
• Redemption when property has multiple tax sales: a redemption may occur if the redemptioner redeems all sales; the amount is computed according to existing sections for prior and subsequent sales.
• Online redemption: applications and payments may be made online.
• Urban renewal/urban redevelopment areas: redemption requires payment of insurance premiums and the value of permanent/preservation improvements, with 12% interest and a formal valuation process using referees and an umpire.
• Definitions and process for determining the value of permanent/preservation improvements and the related notice, dispute resolution, and court enforcement.

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

Subjects

Taxation