Alabama § 11-40-68 - Foreclosure Sale; Adoption of Forms and Policies.

§ 11-40-68. Foreclosure Sale; Adoption of Forms and Policies.

(a) Following the hearing and order of the court in accordance with Section 11-40-66, the court shall order the Class 2 municipality to sell the real property. The sale shall be advertised in a newspaper of general circulation in the county where the land is located. The sale shall not occur earlier than 30 days following the date of the order of the court.

(b)(1) Except as otherwise authorized by law, the minimum bid price for the sale of the real property shall be the redemption amount.

(2) In the absence of any bid higher than the minimum bid price, the court or its designee shall submit a bid for the real property on behalf of the Class 2 municipality or its designee in an amount equal to the minimum bid price, causing the Class 2 municipality to become the purchaser at the sale pursuant to Section 11-40-66.

(3) A bid submitted on behalf of the Class 2 municipality or its designee shall be tendered as a credit bid for that part of the minimum bid price equal to the municipal code lien payoff, as defined in this article. If the minimum bid price bid submitted by the Class 2 municipality includes a tax payoff amount, as defined in this article, the Class 2 municipality shall tender the amount of the tax payoff to the court. Together with the municipal code lien payoff, the tax payoff shall satisfy the full amount of the minimum bid price.

(c) Payment of the winning bid shall be due immediately after the sale is conducted. The proceeds of the foreclosure sale shall be distributed in the following manner:

(1) If the purchaser is a party other than the Class 2 municipality, the court or its designee shall deposit with the Class 2 municipality the amount of the proceeds equal to the municipal code lien payoff.

(2) If the purchaser is the Class 2 municipality, the Class 2 municipality shall tender to the court an amount equal to any costs incurred by the court that are included in the municipal code lien payoff.

(3) If the purchaser is a party other than the Class 2 municipality and the minimum bid price includes a tax payoff amount, the court shall deposit the amounts paid with the appropriate parties in accordance with Sections 40-5-10, 40-10-128, 40-10-129, and 40-10-193, and any applicable local laws.

(4) In the event that the foreclosure sale price exceeds the minimum bid price at the foreclosure sale, the surplus shall be distributed by the court to the interested parties, including the owner, as their interests appear and in the order of priority in which their interests exist.

(d) Upon deposit with the appropriate parties by the court of the tax payoff amounts, if any, described in subdivision (c)(3), any rights of redemption accorded to interested parties under Chapter 10 of Title 40 or Chapter 51 of this title, are extinguished.

(e) Once the sale is completed, the sale shall be considered final and binding.

(f) Within 30 days following the date of the sale, the court shall cause a deed to the real property identified in the petition to be executed. Upon execution, the court shall cause the deed to be recorded with the office of the judge of probate.

(g) Within 30 days following the date of the sale, the Class 2 municipality shall file a report of the sale with the clerk of the circuit court, identifying whether a sale took place, the foreclosure sale price, and the identity of the purchaser.

(h) The Class 2 municipality, by local ordinance, may adopt forms and policies to implement and administer this section.