SB 170 titled the Alabama Uniform Residential Mortgage Satisfaction Act has made its way through the Senate but still must get through the House Banking Committee to get closer to becoming law. This bill, which applies ONLY to residential real estate in Alabama, is timely in the current environment where short sales and 
foreclosures are prevalent but complicated by time delays by lenders for various reasons including the failure (or sale) of the original lender / mortgagee.
The Alabama Uniform Residential Mortgage Satisfaction Act would help sellers and realtors who are missing sales because because of not getting payoff amounts in a timely manner and not being able to confirm the mortgage satisfaction. The Act would shorten the time frame in closing many real estate transactions and would -
1. Require the mortgage lender to give a payoff statement within 14 days of a written request.
2. Require the mortgage lender to submit a satisfaction document within 30 days of receiving full payment.
3. In cases when the original mortgage lender cannot be found, upon full payment, a title company or licensed attorney (under bond) can follow a procedure of giving the mortgagee 30 days notice to satisfy the mortgage or object to satisfaction and record an affidavit of satisfaction on a specific form. This is known as the "Self-Help Satisfaction" which is obviously an option not currently available to lenders.
Realtors are being asked to contact members of the House Banking Committee to encourage them to meet this week to discuss the Alabama Uniform Residential Mortgage Act and keep this legislation moving toward becoming law. Click short sales for more information on how this may apply to you if you need to sell your home and face financial hardship. Contact me at sold@markcrain.com for information on recent sales or listings in your area.
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