The bill HB270 amends Sections 40-10-28 and 40-10-197 of the Code of Alabama 1975, focusing on the distribution of excess funds from tax sales and the foreclosure process for tax lien purchasers. Key insertions include provisions for distributing excess funds to individuals or entities that have redeemed properties, with a requirement that these funds be held for three years before claims can be made under specific conditions. The bill also modifies the timeline for tax lien holders to initiate foreclosure actions, allowing them to do so within a specified period after the tax sale, and introduces new notification requirements for property owners and interested parties. Additionally, it clarifies that the act applies only to tax liens without a final judgment in foreclosure actions as of the act's effective date.

Further amendments include the requirement for all parties entitled to demand a sale of the property at public auction to waive their rights explicitly, and the stipulation that judgment cannot be granted until at least 30 days after an application for default judgment is served. The bill also details the process for redeeming property before judgment, requiring payment of the redemption amount and associated costs. It establishes that the minimum bid at the sale will be determined by the court, covering all outstanding tax lien certificates and associated costs. If a tax lien is not redeemed and foreclosure proceedings are not initiated within 10 years, the tax lien certificate will expire. The act is set to take effect on October 1, 2024, and will apply to all tax liens for which a final judgment has not been rendered by that date.

Statutes affected:
Introduced: 40-10-28, 40-10-197
Engrossed: 40-10-28, 40-10-197
Enrolled: 40-10-28, 40-10-197