AlabamaEligible neighbors can buy before Class 2 city foreclosure auctions
Eligible neighboring homeowners receive notice and can buy adjoining property before Alabama Class 2 cities auction it to collect unpaid housing or building code debts.
What it does
Neighbors who own and occupy adjoining homes and meet property-tax exemption rules can bid before a Class 2 city foreclosure auction. The city accepts the highest neighbor bid, requires immediate payment, and cancels the auction.
Owners of adjoining homes that meet the law's residence and property-tax exemption rules are entitled to notice of Class 2 city foreclosures for unpaid housing or building code debts.
Argument forGiving eligible neighbors the first chance to buy could help people who live beside the property shape its future use.
Argument againstCanceling the public auction when eligible neighbors bid could keep other buyers from competing and offering a higher price.
More detail
Class 2 cities must accept the highest eligible neighbor bid before the public auction and cancel the auction. The rules cover sales for unpaid city housing or building code debts in Alabama Class 2 cities. The bidder's home must share a property boundary with the property being sold. Bidders must submit a sworn statement or declaration confirming that they own and occupy the adjoining property. They must have a listed property-tax exemption or be a deceased person's family member eligible for a listed exemption that has not yet been granted. If no adjoining owners bid, the public sale proceeds. The law took effect on October 1, 2026.
Eligible adjoining homeowners are entitled to notice when a Class 2 city forecloses to collect unpaid housing or building code debts. These rights cover owners whose qualifying homes share a property boundary with the property facing foreclosure in an Alabama Class 2 city. The adjoining home must be lawfully occupied as a main residence and have a listed property-tax exemption. The definition also covers homes lawfully occupied by a deceased person's family when eligible for a listed exemption that has not yet been granted. The law took effect on October 1, 2026.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9EnactedBecame Law
- Apr 2Third Reading in Second House
- Vote recorded Third Reading in Second House. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1062. Result: pass.Upper
- Apr 2Motion to Read a Third Time and Pass - Adopted Roll Call 1062Passed Senate
- Apr 2Ready to Enroll
- Apr 2EnrolledTo Governor
- Apr 2Signature Requested
- Apr 2Delivered to GovernorMinor
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Mobile County Legislation)Minor
- Mar 31Read for the first time and referred to the Senate Committee on Mobile County LegislationMinor
- Mar 31Pending Committee Action in Second House (Mobile County Legislation)
- Mar 17Third Reading in House of Origin
- Vote recorded Motion to Adopt - Adopted Roll Call 902. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903. Result: pass.Lower
- Vote recorded Third Reading in House of Origin. Result: pass.Lower
- Mar 17Mobile County Legislation Engrossed Substitute Offered (Mobile County Legislation)Minor
- Mar 17Motion to Adopt - Adopted Roll Call 902Major
- Mar 17Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 903Passed House
- Mar 17Engrossed
- Mar 11Reported Out of Committee House of Origin (Mobile County Legislation)
- Mar 11Read for the Second Time and placed on the Calendar (Mobile County Legislation)Minor
- Feb 24Read for the first time and referred to the House Committee on Mobile County LegislationMinor
- Feb 24Pending Committee Action in House of Origin (Mobile County Legislation)Introduced
Housing