The payment or satisfaction of the real property mortgage debt divests the title passing by the mortgage. “Payment or satisfaction of the real property mortgage debt” shall not occur until there is no outstanding indebtedness or other obligation secured by the mortgage, and no commitment or agreement by the mortgagee to make advances, incur obligations or otherwise give value (collectively referred to as “extend value”), under any agreement, including, without limitation, agreements providing for future advances, open end, revolving or other lines of credit, or letters of credit. Except as otherwise specifically provided to the contrary in the Alabama Residential Mortgage Satisfaction Act, upon the written request to satisfy a mortgage signed by the mortgagors and by all other persons who have a right to require the mortgagee to extend value or signed by other authorized representatives on behalf of the mortgagors and such other persons, which notice shall actually be served upon the mortgagee, and provided there is no outstanding obligation secured by the mortgage at that time, the mortgagee shall file a properly executed and notarized satisfaction of the mortgage or otherwise cause the mortgage to be satisfied in accordance with other applicable provisions of law. From and after such written request for mortgage satisfaction, neither the mortgagors nor any other person who signed such request, or on whose behalf such request was signed, shall have the right to request or demand that the mortgagee extend value under the mortgage or other agreements and the mortgagee shall be released from all obligations and commitments to extend value thereunder.
(Code 1886, §1870; Code 1896, §1067; Code 1907, §4899; Code 1923, §9026; Code 1940, T. 47, §181; Acts 1988, No. 88-89, p. 115; Act 2012-278, p. 554, §10.)
Notes of Decisions
Cited in
13
cases (
2 in the last 5 years), 1981–2023 · leading case:
Sanchez v. McKinney, 87 So. 3d 502 (Ala. 2011).
Sanchez v. McKinney, 87 So. 3d 502 (Ala. 2011).
· cites it 2× “See also § 35-10-26, Ala.Code 1975.” Bolte v. Robertson, 941 So.”
In Re Sims, 185 B.R. 853 (Bankr. N.D. Ala. 1995).
“Alabama foreclosure law controls the rights of mortgagors and mortgagees unless clearly and manifestly displaced by federal law.”). In the case at bar, therefore, Alabama law is the only “applicable nonbank-ruptcy law.”
Mortg. Corp. of the South v. Judith Lacy Bozeman, 57 F.4th 895 (11th Cir. 2023).
“]” Ala. Code § 35-10-26 . “These are the rights that were ‘bargained for by the mortgagor and the mortgagee,’ and are rights protected from modification by § 1322(b)(2).”
Hinesley v. Davidson, 395 So. 2d 1 (Ala. 1981).
“See Code 1975, § 35-10-26. As an equitable interest in property, the equity of redemption can be conveyed, but the transferee of the mortgagor takes only the equity of redemption, while legal title remains in the mortgagee.”
Leo v. Deutsche Bank Nat'l Trust Co. (Bankr. N.D. Ala. 2022).
· cites it 4× “” Alabama Code § 35-10-26 (1975).26 The purchase of the mortgaged property at a nonjudicial foreclosure sale in exchange for a credit bid that is sufficient to pay the mortgage debt in full ends both the mortgage and the debt.”
Deutsche Bank Nat'l Trust Co. v. Citibank, N.A., 775 F. Supp. 2d 1334 (M.D. Ala. 2011).
· cites it 4× “The Home Equity mortgage provides that it is an open-end mortgage pursuant to the provisions of Alabama Code § 35-10-26. The Home Equity mortgage further provides that upon payment of all sums secured by the mortgage and any applicable early closure fee or other fees, and upon…”
Parmer v. Bank of Am., N.A. (M.D. Ala. 2019).
· cites it 2× “See Ala. Code § 35-10-26 (“The payment or satisfaction of the 2 The debtor (here, Ms.”
Collins v. Overstreet, 959 So. 2d 102 (Ala. Civ. App. 2006).
· cites it 2× “They claim that the 1962 deed from the Collins-es to the Horas was an equitable mortgage that secured a preexisting debt. The fee owners maintain that the Collinses paid the debt before the Horas reconveyed the property to the Collinses in 1965, and, they say, payment of the…”
Evabank v. Traditions Bank, 258 So. 3d 1119 (Ala. 2018).
“Code 1975, states both that "[t]he payment or satisfaction of the real property mortgage debt divests the title passing by the mortgage" and that " '[p]ayment or satisfaction of the real property mortgage debt' shall not occur until there is no outstanding indebtedness or other…”
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