HB501 Alabama 2013 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2013

Title

Mortgage, lender may not seek to recover any differences from sale of foreclosed mortgage

Description

Currently, a lender who forecloses on a mortgage may seek to recover any difference between the amount obtained by sale of the property and the amount of the indebtedness and any interest, costs, and expenses against the debtor if the proceeds of the mortgaged real property sold after foreclosure are insufficient to satisfy the amount of the indebtedness and any interest, costs, and expenses resulting from the foreclosure.

This bill would provide that a lender may not seek to recover any difference between the amount obtained by the sale and the amount of the indebtedness and any interest, costs, and expenses on mortgaged real property if the property consists of two and one-half acres or less and is limited to, and utilized for, either a single one-family or a single two-family dwelling.

This bill would be applicable only to mortgages executed after December 31, 2013.

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Subjects

Mortgages