City of Garfield, NJ Vacant Residential Properties in Foreclosure

A creditor serving a summons and complaint in an action to foreclose on a mortgage on residential property in the City shall, within 10 days of serving the summons and complaint, notify the City Clerk that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property. The notice shall contain the name and contact information of an in-state representative of the creditor who is responsible for receiving complaints of property maintenance and code violations, may contain information about more than one property, and shall be provided by mail or electronic communication, at the discretion of the City Clerk. If the creditor is located out-of-state, the creditor must appoint an in-state representative or agent to act for the foreclosing creditor. The City Clerk shall forward a copy of the notice to the public officer or shall otherwise provide it to any other local official responsible for the administration of any property maintenance or public nuisance code. In the event the property being foreclosed on is an affordable unit pursuant to the Fair Housing Act, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.), then the creditor shall identify that the property is subject to the Fair Housing Act. The notice shall also include the street address, lot and block number of the property, and the full name and contact information of an individual located within the state who is authorized to accept service on behalf of the creditor. An out-of state creditor that fails to appoint an in-state representative or agent pursuant to this article shall be subject to a fine of $2,500 for each day of the violation.

Any creditor that has initiated a foreclosure proceeding on any property which is pending in Superior Court shall provide to the City Clerk a listing of all properties in the municipality for which the creditor has foreclosure actions pending by street address and lot and block number within 10 days of the passage of this article. The creditor shall include the full name and contact information of a person located within the State of New Jersey who is authorized to accept service on behalf of the creditor. The City Clerk shall forward a copy of the notice to the public official.

If the owner of a residential property vacates or abandons any property on which a foreclosure proceeding has been initiated or if a residential property becomes vacant at any point subsequent to the creditor's filing the summons and complaint in an action to foreclose on a mortgage against the subject property, but prior to vesting of title in the creditor or any other third party, and the property is found to be a nuisance or in violation of any applicable state or local code, the local public officer, City Clerk or other authorized municipal official shall notify the creditor, which shall have the responsibility to abate the nuisance or correct the violation in the same manner and to the same extent as the title owner of the property, to such standard or specification as may be required by state law or municipal ordinance. The City shall include a description of the conditions that gave rise to the violation with the notice of violation and shall provide a period of not less than 30 days from the creditor's receipt of the notice for the creditor to remedy the violation, or within 10 days of receipt of the notice if the violation presents an imminent threat to public health and safety. If the creditor fails to remedy the violation within that time period, the City may impose penalties $1,500, payable by the creditor, for each day of the violation.

If the City expends public funds in order to abate a nuisance or correct a violation on a residential property in situations in which the creditor was given notice pursuant to this article, but failed to abate the nuisance or correct the violation as directed, the City shall have the same recourse against the creditor as it would have against the title owner of the property, including but not limited to the recourse provided under Section 23 of P.L. 2003, c. 210 (N.J.S.A. 55:19-100), which recourse includes placement of a lien against the property and against any asset of the creditor, against any asset of the partner of a creditor, if a partnership, and against any asset of any owner of a 10% interest or greater if the creditor is a corporation.

For purposes of this article, "creditor" means a federal or state chartered bank, savings bank, savings-and-loan association or credit union, any person required to be licensed under the provisions of the New Jersey Licensed Lenders Act, P.L. 1996, c. 157 (N.J.S.A. 17:11C-1 et seq.), and any entity acting on behalf of the creditor named in the debt obligation, including, but not limited to, servicers.