SB124 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Greg J. Reed
Republican
Session: Regular Session 2015
Title: Real property, foreclosures on homesteads, redemption period reduced, Secs. 6-5-248, 6-5-252, 8-1-172 am'd.
Summary: SB124 tightens the rules for redeeming foreclosed real estate in Alabama, with shorter timeframes and new notice and payment requirements for homestead properties.
What This Bill Does
It shortens the redemption period to 180 days for residential property with a homestead exemption and to 1 year for all other foreclosures. It clarifies who can redeem (debtors, mortgagors, their spouses/children/heirs, transferees, junior mortgagees, and judgment creditors) and explains how liens are revived and paid at redemption. It adds a 30-day notice requirement to mortgagors before foreclosing on homes with a homestead exemption, delays the start of the redemption period until notice is given, and requires an itemized debt statement within 10 days of demand with corresponding tender or filing deadlines; the act is prospective, becoming effective January 1, 2016, and does not apply to pre-existing sales.

Who It Affects
Debtors and mortgagors (including their spouses, children, and heirs) who may redeem foreclosed property, now with shorter redemption periods and specific rules about liability and priority of liens.
Lenders, junior mortgagees, judgment creditors, transferees, and other lienholders involved in foreclosures (including those affected by lien revival and priority rules) as well as homeowners with a homestead exemption due to the new notice and timing requirements.

Key Provisions
Redemption windows: 180 days after sale for residential property with a homestead exemption; 1 year after sale for all other property.
Expanded redemption eligibility: debtors, mortgagors, their spouses/children/heirs, junior mortgagees, judgment creditors, and transferees may redeem; higher-priority liens are revived and must be paid at redemption.
Notice requirement: for foreclosures on residential property with a homestead exemption, mortgagees must send at least 30 days’ notice to the mortgagor before foreclosure; the redemption period for these properties starts after notice and actions related to notice must be brought within two years of foreclosure.
Statement of charges and tender: redeeming party can demand a written itemized statement of debt and charges within 10 days; if the purchaser fails to provide it, they forfeit certain rights; tender or legal action to redeem must occur within the applicable time frame (one year or 180 days for homestead cases).
Insane person provisions: similar redemption rules apply to foreclosed property held by an insane person, with applicable time frames and payment terms.
Effective date: the act is prospective, effective January 1, 2016, and primarily applies to foreclosures after that date, with specified exceptions for sales prior to the effective date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal