Filing Petition for Foreclosure; Notice; Adoption of Forms and Policies

(a) After a municipal code lien has been recorded with the judge of probate of the county in which the real property lies, the Class 2 municipality may identify those properties on which to commence a judicial in rem foreclosure in accordance with this article, except that properties identified by the Class 2 municipality as owner-occupied shall not be subject to judicial in rem foreclosure under this article. The Class 2 municipality shall not file a petition for judicial in rem foreclosure in accordance with this article for a period of six months following the date the municipal code lien is recorded in the office of the judge of probate. A petition for judicial in rem foreclosure may include any other municipal code lien that has been filed prior to the date the petition is filed. After enforcement proceedings have commenced in accordance with this article, the enforcement proceedings may be amended to include any subsequently arising municipal code liens and, if applicable, any taxes as defined in this article. (b) If the property on which the Class 2 municipality is seeking to foreclose under this article is subject to taxes as defined in this article, then at least 60 days prior to the filing of the petition, the Class 2 municipality shall notify the county’s ad valorem tax collecting official of the Class 2 municipality’s intention to file a petition for judicial in rem foreclosure of the real property on which a municipal code lien exists. Upon notification, the county’s ad valorem tax collector shall provide the tax payoff amount to the Class 2 municipality. (c) The Class 2 municipality shall record in the appropriate lis pendens record in the office of the judge of probate of the county in which the real property is located, a notice of its intent to file a judicial in rem foreclosure action. The notice shall include a legal description of the property, the property’s street address, if available, a statement that the property is subject to judicial in rem foreclosure proceedings under this article, and a statement that those proceedings may extinguish any legal interests in the property. (d) Simultaneous with the filing of the notice of intent to file a judicial in rem foreclosure action, the Class 2 municipality shall file a petition with the clerk of the circuit court for the judicial circuit in which the real property is located. (e) The petition shall be filed against the real property against which the municipal code lien has been recorded and shall provide all of the following: (1) The identity of the Class 2 municipality. (2) The real property address. (3) A description of the real property. (4) The tax identification number of the real property. (5) The municipal code lien that is being foreclosed. (6) The principal amount of the municipal code lien together with applicable interest and penalties. (7) The principal amount of any additional municipal code liens, if any, in accordance with subsection (a) together with applicable interest and penalties. (8) The year or years for which the taxes are delinquent, if any. (9) The principal amount of the taxes together with interest and penalties, if any. (10) The tax payoff amount. (11) A statement that upon final sale, in accordance with this article and payment of the tax payoff amount, if applicable, an interested party’s rights of redemption under Chapter 10 of Title 40 or Chapter 51 of this title, shall be extinguished. (12) The names and addresses of all interested parties to whom copies of the petition are to be sent in accordance with subsection (f). (f) The Class 2 municipality shall mail copies of the petition by both certified mail, return receipt requested, and by regular mail to all interested parties whose identity and address are reasonably ascertainable. Copies of the petition shall also be mailed by first-class mail to the real property address to the attention of the occupants of the property, if any. In addition, notice shall be physically posted on the real property and shall include the following statement: “THIS PROPERTY IS SUBJECT TO A JUDICIAL IN REM FORECLOSURE ACTION AND MAY BE TRANSFERRED TO [NAME OF CLASS 2 MUNICIPALITY] OR ANOTHER PARTY. PERSONS WITH INFORMATION REGARDING THE CURRENT OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [NAME OF CLASS 2 MUNICIPALITY].” (g) If the Class 2 municipality finds reason to believe that the real property is owner-occupied after the filing of the petition, the Class 2 municipality shall immediately seek dismissal of its petition. (h) Within 30 days of the filing of the petition, the Class 2 municipality shall cause a notice of the filing of the petition to be published once each week for three consecutive weeks in a newspaper of general circulation in the county in which the property is located. Such notice shall specify: (1) The name and address of the Class 2 municipality. (2) The real property address. (3) A description of the real property. (4) The tax identification number of the real property. (5) Any applicable municipal code lien upon which is being foreclosed. (6) The principal amount of any municipal code lien together with interest and penalties. (7) The applicable period of tax delinquency, if any. (8) The principal amount of taxes, if any. (9) Upon deposit with the appropriate parties by the court of the tax payoff amounts, if any, all rights of redemption accorded to interested parties under Chapter 10 of Title 40 or Chapter 51 of this title are extinguished. (10) The date and place of the filing of the petition. (i) The Class 2 Municipality, by local ordinance, may adopt forms and policies to implement and administer this section. (Act 2017-304, §6; Act 2018-406, §1(b)(2); Act 2026-361, §2.)