Alabama Realtors® Fight Eminent Domain Foreclosures
The spike in foreclosures in recent years has left many property owners vulnerable. The Alabama Association of REALTORS® is working hard to protect private property rights in the state, and to protect vulnerable property owners from unfair foreclosures.
Recently, the Association worked with its members to support bills in the state Senate and House (SB 83 and HB 121) that would ban the taking of residential and commercial real estate through eminent domain proceedings. The bills were later combined and signed into law by the governor on April 9, 2015.
In the actions targeted by the legislation, investment companies join with municipalities to seize a property that has a market value well below what is owed on its mortgage. When a property has this “upside down” status, potential lenders often respond by charging higher interest rates and demanding higher down payments from potential homebuyers, discouraging home ownership.
Protecting homeowners against an unreasonable taking of their property helps keep the housing market active and stable.
The Alabama Association of REALTORS® is actively advocating for the protection of the rights of all citizens and property owners.