Consumer Finance Litigation

The Alabama Legislature recently amended sections 6-5-248, 6-5-252, and 8-1-172 of the Alabama Code, which govern redemption in the State of Alabama. Prior to the amendments, the redemption period for all real property was one year from the date of the foreclosure sale. The amendments reduce the redemption period to 180 days for residential property on which a homestead exemption was claimed in the tax year during which the sale occurred. The amendments also require a mortgagee who forecloses residential property on which a homestead exemption was claimed in the tax year during which the sale occurred to mail a notice to the mortgagor at the address of the property subject to foreclosure at least 30 days prior to the foreclosure date by certified mail. The required contents of the notice are set forth in the amended statute.