[HISTORY: Adopted by the Town Board of the Town of Brookhaven 9-12-2019 by L.L. No. 21-2019, effective 9-27-2019. Amendments noted where applicable.]
It is the purpose and intent of the Town Board to establish a process to limit and reduce the amount of deteriorating properties located within the Town, which property is subject to a mortgage which is in default. It is the Town Board's further intent to specifically establish a defaulted mortgage registration program as a mechanism to protect neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned properties subject to a mortgage or properties subject to mortgages which are in default.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the content clearly indicates a different meaning:
- REAL PROPERTY IN DEFAULT
- Any real property that is under a current notice of default and/or notice of mortgagee's sale, pending Tax Assessor's lien sale and/or properties that have been the subject of a foreclosure sale where the title was retained by the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure or sale.
- The process by which a property, placed as security for a mortgage loan, after a judicial process is to be sold at an auction to satisfy a debt upon which the borrower has defaulted.
- Any building or structure shall be deemed to be vacant if no person or persons actually currently conducts a lawfully licensed business, or lawfully resides or lives in any part of the building as the legal or equitable owner(s) or tenant-occupant(s), or owner-occupant(s), or tenant(s) on a permanent, nontransient basis.
This chapter shall be considered cumulative and not superseding or subject to any other law or provision for same, but shall rather be an additional remedy available to the Town above and beyond any other state, county and/or local provisions for same. This chapter relates to property subject to a mortgage which has been determined by the mortgagee to be in default.
Duty to register: Within 10 days of date that a mortgagee declares its mortgage on a particular parcel to be real property in default, the mortgagee shall inspect and register the real property in default with the Town's mortgage-in-default registry. The mortgagee shall include in the registration if the real property in default is vacant or occupied.
Mortgage-in-default registration. Registration pursuant to this section shall contain the name of the mortgagee and mortgage servicer; the direct mailing address of the mortgagee and servicer, e-mail address and telephone number; the name and address, e-mail, and telephone number of a national and local property manager who shall be responsible for the inspection, security and maintenance of the real property in default. The local property manager named in the registration shall be located and available within Suffolk and Nassau Counties Monday through Friday between 9:00 a.m. and 5:00 p.m., holidays and lunch hours excepted, to be contacted by the Town.
A semiannual nonrefundable application fee, as established by Town Board resolution, per real property in default shall accompany the mortgage-in-default registration form(s). Subsequent semiannual applications of defaulted properties and fees are due within 10 days of the expiration of the previous registration.
This section shall also apply to properties that have been the subject of foreclosure sale where the title was transferred to the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.
Properties subject to this section shall remain under the semiannual mortgage-in-default registration requirement and inspection of this chapter as long as they remain a real property in default.
Properties subject to this section shall also be subject to the registration requirements of Town Code Chapter 87, entitled "Vacant Building Registration." In the event a parcel is registered pursuant to Chapter 87 and the registration contained within this chapter, only the fees pursuant to this chapter shall be required.
Duty to report changes: Any mortgagee, person or other legal entity that has registered a real property in default must report any change of information contained in the registration within 10 days of the change. Failure to report any change of information contained in the registration as required by this subsection shall be deemed a violation of this chapter.
Occupied real property in default shall be inspected by the mortgagee, or said mortgagee's designee, monthly until the mortgagor or other party remedies the default.
Occupied real property in default which becomes vacant shall be inspected by the mortgagee or said mortgagee's designee at weekly inspections to verify compliance with the requirements of this section and any other applicable laws or Town ordinances.
Any person, corporation, owner, agent, or entity who shall violate any of the provisions of this chapter or who shall fail to comply therewith or with any of the requirements thereof shall be guilty of a violation and, upon conviction thereof, a fine of not less than $1,000 nor more than $15,000 must be imposed.