Tax Assessor Sold My Father's House Without Notice Due To Mortgage Company's Escrow Mixup

Location: Alabama

My elderly father's mortgage company was remitting his property taxes for the wrong parcel, and we just found out the county tax assessor sold my father's house due to unpaid taxes in May 2021. Our friend randomly discovered this in December 2025 when he went to pay his property taxes (he owned the parcel the mortgage company was incorrectly remitting taxes to). The tax assessor didn't notify my father or the mortgage company about the auction, and now the 3-year redemption window is over. The new buyer never tried to take ownership of the house, my father is still living there. County records show the new purchaser as the owner, however. My father has continued to pay his mortgage payment, has not missed or been late on one.

He recently received certified mail, listing his mortgage company as the plaintiff, and him and the new owner as the defendants. It appears they are trying to get the new owner to do a quit claim, having offered him repayment of his purchase amount and 12% interest. It appears they are trying to do right by my father and get it deeded back to him.

My father is elderly and retired and on a fixed income. He doesn't want to hire his own attorney if this can be handled properly via the mortgage company's attorney.

If they do get it deeded back to him, which I believe will happen, does my father have any possible grounds to sue the mortgage company for damages? He never missed a payment, taxes were being paid into escrow. He did everything he was supposed to do, including paying payments on a home he didn't own from May 2021 - until now.