HB591 Summary

• Amends Alabama Code Sections 40-10-120 and 40-10-122 to allow mortgagees, judgment creditors, and other creditors with liens on real estate to redeem property sold for nonpayment of taxes in the name of the property owner.

• Previously, under existing law, creditors with liens could not redeem such property in the owner's name; this bill removes that restriction.

• Establishes that creditors may redeem property within the same timeframes as owners (three years from date of sale, or one year if the mortgage or lien was properly recorded at time of tax sale).

• Requires redemptioners to deposit the sale price plus 12 percent annual interest with the probate judge, pay any taxes unpaid by the purchaser, and reimburse the purchaser for certain improvements and insurance premiums depending on property type.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.