Hi there Joe. To remove prior owners from a foreclosed property, it's important to understand the nuances of Alabama law. House Bill 182, which became effective on June 1, 2024, is primarily aimed at addressing the issue of squatting and provides a streamlined process for property owners to request law enforcement to remove unauthorized individuals from a dwelling. This law allows a property owner or their agent to submit a sworn affidavit to law enforcement stating that an individual is unlawfully occupying the property. Upon verification of ownership, law enforcement is then authorized to serve a notice to vacate, typically within 24 hours of receiving the affidavit.
While HB 182 offers a potentially quicker route to remove unauthorized occupants compared to a formal eviction process, its applicability to prior owners after a foreclosure requires careful consideration. The law specifically defines an "unauthorized individual" and includes stipulations that the individual is not a tenant, a holdover tenant, or an immediate family member of the owner. In the context of a foreclosure, the prior owners were, at one point, the legal owners and occupants. The nature of their continued presence after the foreclosure sale might not neatly fit the definition of a squatter or an unauthorized individual in the way the law intends.
In Alabama, after a foreclosure sale, the prior owners may have a statutory right of redemption, allowing them a specific period (often one year for homestead property) to repurchase the property. Their continued occupancy during this redemption period, or even immediately after the sale but before any formal eviction proceedings, could be viewed differently under the law than a typical squatting scenario. Therefore, while HB 182 provides a mechanism to deal with unauthorized occupants, its direct application to ejecting prior owners after a foreclosure might be legally complex and could potentially infringe on their rights related to the foreclosure process and redemption. It would be prudent for the bank, as the new property owner, to consult with local legal counsel in Birmingham, Alabama, to determine the most appropriate and legally sound procedure for removing the prior owners, which may still involve initiating an ejectment action through the courts, especially if the prior owners are not vacating voluntarily after the foreclosure.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
No, you can't use that law to eject former owners or their tenants after a foreclosure. You must file an ejectment lawsuit.
Also, post-foreclosure redemption rights are only six months for homestead property in Alabama.
Also, be aware that the federal Protecting Tenants at Foreclosure Act (PTFA), passed in 2009 during the Great Recession, expired and then was reinstated during the final days of President Trump's first term. It is still the law. Residential tenants in possession after a foreclosure have rights, including the ability to stay in the property until the end of their lease term, at the rental rate in their lease. The rent has to be paid to the new owner, though. If you are unfamiliar with the PTFA, here is some additional info: https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2...