Code of Alabama - Title 11: Counties and Municipal Corporations - Section 11-40-65 - Filing petition for foreclosure; form of petition; notice

Section 11-40-65 - Filing petition for foreclosure; form of petition; notice.

(a) After a municipal code lien has been recorded with the office of the probate judge 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 those properties the Class 2 municipality identifies 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 upon which the municipal code lien is recorded in the office of the probate judge. 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 and all 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 all other taxing agencies within the jurisdiction of the Class 2 municipality, and the State of Alabama 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 Revenue Commissioner 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 his or her intent to file a judicial in rem foreclosure action. The notice shall include a legal description of the property, street address of the property 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 his or her 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, the petition shall have form and content substantially identical to that form as provided in subsection (i).

(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 which 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 together with applicable interest and penalties in accordance with subsection (a) if any.

(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 Title 40, Chapter 10 or this title, Chapter 51, 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 which is being foreclosed upon.

(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, any and all rights of redemption accorded to interested parties under Title 40, Chapter 10 or under this title, Chapter 51, are extinguished.

(10) The date and place of the filing of the petition.

(i) The petition for judicial in rem foreclosure shall be in substantially the following form:

IN THE CIRCUIT COURT FOR__________ COUNTY

STATE OF ALABAMA-

Petitioner: )

[Class 2 municipality] )

Name, Address, )

Telephone Number )

v. Civil Action No: ________

Respondents:

__________, ACRES OF LAND LYING )

AND BEING IN __________________, )

_____________COUNTY, ALABAMA )

__________________________________ )

__________________________________ )

(Address of Property)

And

_______________________________ )

Name and mailing address of Owner

PETITION FOR JUDICIAL IN REM FORECLOSURE COMES NOW (Petitioner) and petitions this Court for judicial in rem foreclosure in accordance with Section _________ of the Code of Alabama 1975, by showing this Court as follows:

1. _________ is the owner of certain real property located at ________ (the "Property") having a tax identification number of _____. (A legal description of the Property is attached hereto as Exhibit "A" and by this reference incorporated herein).

2. The municipal code lien(s) recorded against the Property by City of _____ for nonpayment of costs incurred, penalties, or fees arising from violations of the City of _______'s Code of Ordinances related to the Property, the total amount of which is $ ________ (amount includes principal amount of the municipal code lien and any accrued interest and penalties as of this date) have not been paid. (An itemized list of any municipal code lien recorded against the Property and the subject of this Petition is attached hereto as Exhibit "B" and by this reference incorporated herein.)

3. The taxes assessed against the Property by City/County of _____ or by the State of Alabama for the year(s) _____ in the amount of $ ________ (amount includes principal amount of taxes owed and any accrued interest and penalties as of this date) [have] [have not] been paid.

4. Attached hereto as Exhibit "C" is a list of the names and addresses of interested parties also receiving a copy of this Petition by first class mail.

5. Occupants of the Property shall be served by mailing the petition by first-class mail to the attention of the occupants at the above-listed Property address.

6. Based upon the information and belief of the Petitioner the Property is not owner-occupied property.

7. The Petition has also been posted on the Property in accordance with Section 11-4-54(f), Code of Alabama 1975.

8. Simultaneously with the filing of this Petition, Petitioner has filed a lis pendens in the appropriate office of the judge of probate.

WHEREFORE, Petitioner demands (1) a hearing before the Circuit Court in _____ County (the "Court") and (2) a judgment by the Court stating that (a) the municipal code lien recorded against the Property is delinquent and (b) that notice has been given to all interested parties, and an order that the Court may cause the Property to be sold at public outcry in a similar manner as that required in Section 40-10-15 of the Code of Alabama.

CITY OF ______________

By: ___________________

Its: ___________________

NOTICE TO RESPONDENTS AND ALL INTERESTED PARTIES

This petition serves as notice to the respondents and all interested parties that (1) each party is presumed to own or have a legal interest in the property, (2) that foreclosure proceedings have been commenced because of the failure to pay the municipal code lien cited above, and (3) foreclosure will result in the loss of ownership of the Property and all rights or interests of all interested parties, including any and all rights or redemption accorded to by interested parties under Title 40, Chapter 10 and Title 11, Chapter 5, Code of Alabama 1975.

To avoid loss of ownership or any interest in the property, payment of the full amount of the municipal code lien, penalties, interest, and costs, plus payment of the full amount of any property taxes that are due or delinquent, if any, including any related penalties, interest, and costs must be paid to the _____ office located at _____ by _____date. Respondents and all interested parties are also reminded that each of you may wish to contact an attorney to protect your rights.

A hearing on the above matter shall take place before the Circuit Court of _____ County no earlier than 30 days after the filing of this petition. To determine the exact time and date of such hearing, please call the office of the Circuit Court of _____ County.

This _____ day of _____, _____.

__________________________

Circuit Clerk of ______ County

EXHIBIT A

Description of the Property

Together with all rights, title, and interest running with the above-described property but not taxed under a separate tax reference number as delineated on the tax maps of the petitioner for the year(s) for the municipal code liens being foreclosed.

EXHIBIT B

Names and Addresses of Interested Parties

(Act 2017-304, §6; Act 2018-406, §1(b)(2).)

Last modified: May 3, 2021