The bill HB529 amends the Code of Alabama 1975 to streamline the judicial in rem foreclosure process for Class 2 municipalities. Key changes include the removal of the requirement to notify all state and local taxing authorities, except for the local ad valorem tax collector, of the intent to foreclose. It also eliminates the need for specific statutory language in petitions and foreclosure deeds, allowing municipalities to create their own forms. The timeline for foreclosure processes is expedited, with municipalities now able to proceed with foreclosure sales 30 days after a judicial order, and the circuit court required to execute foreclosure deeds within 30 days instead of the previous 90 days. Additionally, municipalities must file a foreclosure report with the circuit clerk within 30 days of the sale, rather than 90 days.

The bill introduces new provisions allowing municipalities to adopt local ordinances for the administration of foreclosure processes and modifies the notification requirements for interested parties. It updates the redemption process, allowing interested parties to redeem properties directly with the municipality and clarifies that payments made by parties other than the owner will create a lien on the property. The bill also mandates that if no higher bids are received during foreclosure sales, the court or its designee must submit a bid on behalf of the municipality, treating it as a credit bid for lien payoffs. The timeframe for executing and recording deeds is reduced from 90 days to 30 days post-sale, and the bill is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 11-40-65, 11-40-67, 11-40-68, 11-40-65, 11-4-54
Enrolled: 11-40-65, 11-40-67, 11-40-68, 11-40-65, 11-4-54