HB501 Alabama 2013 Session

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

Relating to mortgages; to provide that a lender may not seek to recover any difference between the amount obtained by sale of the foreclosed property and the amount of the indebtedness and any interest, costs, and expenses related to the foreclosure of 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; and to provide that the provisions of this bill would be applicable only to mortgages executed after December 31, 2013.