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AlabamaHB5292026 Regular SessionHouse

Class 2 municipalities; municipal lien process revised

Sponsored By: Barbara Drummond (Democratic)

Enacted

Counties & Municipalities

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Cities and counties receive foreclosure payments

Beginning October 1, 2026, these payment rules apply to municipal code-lien foreclosures in Class 2 municipalities. When someone other than the municipality buys the property, the court or its designee must deposit the municipal lien payoff with the municipality. Probate-office costs and fees cannot reduce that payoff. Municipalities must send delinquent property taxes, interest, and fees included in redemption payments to the county tax official. This tax-transfer rule does not create a new payment obligation for the person redeeming the property.

Faster foreclosure paperwork and local forms

Beginning October 1, 2026, Class 2 municipalities and courts must complete foreclosure paperwork sooner. Courts must have deeds executed within 30 days after sale, down from 90 days, and recorded upon execution. Municipalities must file sale reports with the circuit court clerk within 30 days, also down from 90 days. Reports must state whether a sale occurred and, if so, its price and buyer. Municipalities may adopt local forms and policies by ordinance, replacing the statutory deed form.

Earlier municipal foreclosure sales with public notice

Beginning October 1, 2026, these municipal code-lien foreclosure sale rules apply only in Class 2 municipalities. After the required hearing and court order, the court must direct the municipality to sell the property. The minimum wait after the sale order falls from 45 days to 30 days. The municipality must advertise the sale in a newspaper serving the county where the property is located. Owner-occupied properties are excluded from this foreclosure process.

Sponsors & Cosponsors

Sponsor

  • Barbara Drummond

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 134 • No: 0

Senate vote • 3/31/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 968

Yes: 29 • No: 0

Senate vote • 3/31/2026

Third Reading in Second House

Yes: 29 • No: 0

House vote • 3/17/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 908

Yes: 16 • No: 0 • Other: 87

House vote • 3/17/2026

Third Reading in House of Origin

Yes: 60 • No: 0 • Other: 44

Actions Timeline

  1. Enacted

    4/7/2026House

  2. Third Reading in Second House

    3/31/2026Senate

  3. Motion to Read a Third Time and Pass - Adopted Roll Call 968

    3/31/2026Senate

  4. Ready to Enroll

    3/31/2026House

  5. Enrolled

    3/31/2026House

  6. Signature Requested

    3/31/2026Senate

  7. Delivered to Governor

    3/31/2026House

  8. Read for the Second Time and placed on the Calendar

    3/19/2026Senate

  9. Reported Out of Committee Second House

    3/18/2026Senate

  10. Third Reading in House of Origin

    3/17/2026House

  11. Motion to Read a Third Time and Pass - Adopted Roll Call 908

    3/17/2026House

  12. Read for the first time and referred to the Senate Committee on Mobile County Legislation

    3/17/2026Senate

  13. Pending Committee Action in Second House

    3/17/2026Senate

  14. Reported Out of Committee House of Origin

    3/11/2026House

  15. Read for the Second Time and placed on the Calendar

    3/11/2026House

  16. Read for the first time and referred to the House Committee on Mobile County Legislation

    2/26/2026House

  17. Pending Committee Action in House of Origin

    2/26/2026House

Bill Text

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