Ex Parte First United Security Bank and Paty Holdings, LLC (in Re: First United Security Bank and Paty Holdings, LLC…

Summary

The Alabama Supreme Court clarified that a foreclosing mortgagee is an “owner” entitled to excess proceeds from a tax sale under Ala. Code §40‑10‑28, regardless of whether the foreclosure occurs before or after the tax sale. It held that the statute’s term “owner” includes a purchaser at a foreclosure sale who merges legal and equitable title, reversed the Court of Civil Appeals, and remanded for further proceedings.