Code of Alabama - Title 8: Commercial Law and Consumer Protection - Section 8-1-172 - Mortgage taken in good faith on real estate of insane person not void

Section 8-1-172 - Mortgage taken in good faith on real estate of insane person not void.

(a) When any person shall in good faith take a mortgage on real estate from an insane person without notice of the insanity, the mortgage deed shall not be void; but the insane person may redeem the property so mortgaged at any time prior to a foreclosure by paying to the mortgagee the amount actually received by the insane person at the time of executing the mortgage, or any balance due thereon, with interest thereon to the date of redemption.

(b) If the mortgage shall have been foreclosed, the insane person may redeem from the vendee at the foreclosure sale, or those claiming under the vendee, at any time within 180 days from foreclosure for residential property on which a homestead exemption was claimed in the tax year during which the foreclosure occurred, or at any time within one year from foreclosure for all other property, by paying to the vendee, or those claiming under the vendee, the amount which the vendee at the mortgage foreclosure sale actually paid at the sale for the property, with interest thereon at the rate of eight percent per annum to the date of redemption, together with all lawful charges as provided for by law.

(Code 1923, §6823; Code 1940, T. 9, §42; Act 2015-79, §1.)

Last modified: May 3, 2021