Alabama SB124 has been sent to the Governor for signature. It amends Alabama Code Sections 6-5-248, -252, and 8-1-172 as follows:
- When signed, the law will take effect January 1, 2016.
- Post-foreclosure redemption time period shortened to 180 days from date of sale for residential property on which a homestead exemption was claimed in the tax year during which the foreclosure sale occurred (in other words, owner-occupied residential property)
- All other property redemption time periods remain one year.
- Lenders are required to send out a pre-foreclosure notice with specific language, at least 30 days prior to the foreclosure date. The notice must be by certified mail with return receipt requested. If the notice is not sent out, the foreclosure is still valid, but the redemption period can be as much as two years after the foreclosure. For you foreclosure investors, that means one more letter you must confirm the lender sent out in a timely manner.
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