[Added 12-9-2014 by Ord.
No. 12-9-14]
Any creditor filing a summons and complaint in an action to
foreclose shall be responsible for the care, maintenance, security
and upkeep of the exterior of the vacant and abandoned residential
property, and if located out of State, shall be responsible for appointing
an in-State representative or agent to act for the foreclosing creditor.
[Added 12-9-2014 by Ord.
No. 12-9-14]
The Maintenance Code Officer or the Zoning Code Officer is authorized
to issue a notice to the creditor filing the summons and complaint
in an action to foreclose, if the Maintenance Code Officer or the
Zoning Code Officer determines that the creditor has violated the
ordinance by failing to provide for the care, maintenance, security
and upkeep of the exterior of the property. Such notice shall require
the person or entity to correct the violation within 30 days of receipt
of the notice, or within 10 days of receipt of the notice if the violation
presents an imminent threat to public health and safety. The issuance
of a notice pursuant to this paragraph shall constitute proof that
a property is vacant and abandoned for the purposes of N.J.S.A. 2A:50-73.
[Added 12-9-2014 by Ord.
No. 12-9-14]
This chapter requires that an out-of-State creditor include
the full name and contact information of the in-State representative
or agent in the notice required to be provided pursuant to N.J.S.A.
46:10B-51.
a.
An out-of-State creditor subject to this chapter found by the municipal
court, or by any other Court of competent jurisdiction, to be in violation
of the requirement to appoint an in-State representative or agent
pursuant to this chapter shall be subject to a fine of $2,500 for
each day of the violation. Any fines imposed on a creditor for the
failure to appoint an in-State representative or agent shall commence
on the day after the 10 day period set forth in paragraph 1 of N.J.S.A.
46:10B-51 for providing notice to the Municipal Clerk that a summons
and complaint in an action to foreclose on a mortgage has been served.
[Added 12-9-2014 by Ord.
No. 12-9-14]
Any creditor subject to this to be found by the municipal court,
or by any other Court of competent jurisdiction, to be in violation
of the requirement to correct, care, to provide maintenance, security,
or upkeep violation cited in a notice issued pursuant to the ordinance
shall be subject to a fine of $1,500 for each day of the violation.
Any fines imposed pursuant to this paragraph shall commence 31 days
following receipt of the notice, except if the violation presents
and imminent risk to public health and safety, in which case any fines
shall commence 11 days following receipt of the notice. No less than
20% of any money collected pursuant to subsection a of this section
shall be utilized by the municipality for municipal code enforcement
purposes.
[Added 12-9-2014 by Ord.
No. 12-9-14]
a.
A creditor serving a summons and complaint in an action to foreclose
on a mortgage on residential property in this State shall, within
10 days of serving the summons and complaint, notify the Municipal
Clerk of the municipality in which the property is located 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 for the 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 Municipal Clerk. In the event the creditor that
has served a summons and complaint in an action to foreclose on a
residential property is located out-of-State, the notice shall also
contain the full name and contact information of an in-State representative
or agent who shall be responsible for the care, maintenance, security,
and upkeep of the exterior of the property if it becomes vacant and
abandoned. If the municipality has appointed a public officer pursuant
to N.J.S.A. 40:48-2.3 et seq, the Municipal Clerk shall forward a
copy of the notice to the public officer or shall otherwise provide
it to an other local official responsible for administration of any
property maintenance or public nuisance code.
In the event that property being foreclosed on is an affordable
unit pursuant to the Fair Housing Act, N.J.S.A. 52:27D-301 et al.,
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. The notice shall be provided to
the Municipal Clerk within 10 days of service of a summons and complaint
in an action to foreclose on a mortgage against the subject property.
b.
Within 30 days following the effective date of N.J.S.A. 2A:50-69
et al any creditor that has initiated a foreclosure proceeding on
any residential property which is pending in Superior Court shall
provide to the Municipal Clerk of the municipality in which the property
is located, a listing of all residential properties in the municipality
for which the creditor has foreclosure actions pending by street address
and lot and block number. If the municipality has appointed a public
offer pursuant to N.J.S.A. 40:48-2.3 et seq., the Municipal Clerk
shall forward a copy of the notice to the public officer, or shall
otherwise provide it to any other local official responsible for administration
of any property maintenance or public nuisance code.
c.
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 exterior of the property
is found to be a nuisance or in violation of any applicable State
or local code, the local public officer, Municipal Clerk, or other
authorized municipal official shall notify the creditor or the representative
or agent of an out-of-State creditor, as applicable, 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 municipality 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. If the creditor fails to remedy the violation
within that time period, the municipality may impose penalties allowed
for the violation of municipal ordinances pursuant to N.J.S.A. 40:49-5.
d.
If the municipality expends public funds in order to abate a nuisance
or correct a violation on a residential property in situations in
which the creditor was give notice pursuant to the provisions of paragraph
c above but failed to abate the nuisance or correct the violation
as directed, the municipality 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 N.J.S.A. 55:19-100.
[Added 12-9-2014 by Ord.
No. 12-9-14]
a.
For the purposes of this section, vacant and abandoned residential property means residential real estate with respect to which the mortgagee proves, by clear and convincing evidence, that the mortgaged real estate is vacant and has been abandoned or where a notice of violation has been issued pursuant to subsection b. of section 1 of N.J.S.A. 40:48-2.12s. Where a notice of violation has not been issued pursuant to subsection b. of section 1 of N.J.S.A. 40:48-2.12s, real property shall be deemed vacant and abandoned if the court finds that the mortgaged property is not occupied by a mortgagor or tenant as evidenced by a lease agreement entered into prior to the service of a notice of intention to commence foreclosure according to section 4 of the Fair Foreclosure Act, N.J.S.A. 2A:50-56, and at least two of the following conditions exist:
1.
Overgrown or neglected vegetation;
2.
The accumulation of newspapers, circulars, flyers or mail on the
property;
3.
Disconnected gas, electric, or water utility services to the property;
4.
The accumulation of hazardous, noxious, or unhealthy substances or
material on the property;
5.
The accumulation of junk, litter, trash or debris on the property;
6.
The absence of window treatments such as blinds, curtains or shutters;
7.
The absence of furnishings and personal items;
8.
Statements of neighbors, delivery persons, or government employees
indicating the residence is vacant and abandoned;
9.
Windows or entrances to the property that are boarded up or closed
off or multiple window panes that are damaged, broken and unrepaired;
10.
Doors to the property that are smashed through, broken off, unhinged,
or continuously unlocked;
11.
A risk to the health, safety or welfare of the public, or any adjoining
or adjacent property owners, exists due to acts of vandalism, loitering,
criminal conduct, or the physical destruction or deterioration of
the property;
12.
An uncorrected violation of a municipal building, housing or similar
code during the preceding year, or an order by municipal authorities
declaring the property to be unfit for occupancy and to remain vacant
and unoccupied;
13.
The mortgagee or other authorized party has secured or winterized
the property due to the property being deemed vacant and unprotected
or in danger of freezing;
14.
A written statement issued by an mortgagor expressing the clear intent
of all mortgagors to abandon the property;
15.
Any other reasonable indicia of abandonment.
b.
For the purposes of this section, a residential property shall not
be considered vacant and abandoned, if on the property:
1.
There is an unoccupied building which is undergoing construction,
renovation, or rehabilitation that is proceeding diligently to completion,
and the building is in compliance with all applicable ordinances,
codes, regulations and statutes;
2.
There is a building occupied on a seasonal basis, but other wise
secure; or
3.
There is a building that is secure, but is the subject of a probate
action, action to quiet title, or other ownership dispute.
c.
In addition to the residential mortgage foreclosure procedures set
out in the Fair Foreclosure Act, N.J.S.A. 2A:50-53 et seq., a summary
action to foreclose a mortgage debt secured by residential property
that is vacant and abandoned may be brought by a lender in the Superior
Court. In addition, a lender may, at any time after filing a foreclosure
action, file with the court, in accordance with the Rules Governing
the Courts of the State of New Jersey, an application to proceed in
a summary manner because the residential property that is the subject
of the foreclosure action is believed to be vacant and abandoned;
provided, however, that this section shall not apply to a foreclosure
of a timeshare interest secured by a mortgage.
d.
1.
In addition to the service of process required by the Rules of Court,
a lender shall establish, for the entry of a residential foreclosure
judgment under this section, that a process server has made two unsuccessful
attempts to serve the mortgagor or occupant at the residential property,
which attempts must be at least 72 hours apart, and during different
times of the day, either before noon, between noon and 6:00 p.m.,
or between 6:00 p.m. and 10:00 p.m.
2.
In addition to any notices required to be served by law or the Rules
of Court, a lender shall, with any order to show cause served as original
service of process or a motion to proceed summarily, serve a notice
that the lender is seeking, on the return date of the order to show
cause, or on the date fixed by the court, to proceed summarily for
entry of a residential foreclosure judgment because the property is
vacant and abandoned.
3.
When a property is deemed vacant and abandoned as herein defined,
a lender shall not be required to serve the debtor with the notice
to cure required by section 6 of the Fair Foreclosure Act, N.J.S.A.
2A:50-58.
e.
1.
The court may enter a final residential mortgage foreclosure judgment
under this section upon a finding,
(a)
By clear and convincing evidence, that the residential property
is vacant and abandoned as defined under paragraph a; and
(b)
That a review of the pleadings and documents filed with the
court, as required by the Rules of Court, supports the entry of a
final residential mortgage foreclosure judgment.
2.
A final residential mortgage foreclosure judgment under this section
shall not be entered if the court finds that:
f.
If a final residential mortgage foreclosure judgment under this section
is not entered on the original or adjourned return date of an order
to show cause or the date fixed by the court to proceed summarily,
the court may direct that the foreclosure action continue on the normal
track for residential mortgage foreclosure actions for properties
that are not vacant and abandoned and the notice to cure served with
the order to show cause or the order fixing that date for the matterto
proceed summarily shall be of not effect.
g.
All actions brought to foreclose on real property pursuant to this
section shall proceed in accordance with the Rules of Court.
h.
Nothing in this section is intended to supersede or limit other procedures
adopted by the Court to resolve residential mortgage foreclosure actions,
including, but not limited to, foreclosure mediation.
i.
Nothing in this section shall be construed to affect the rights of
a tenant to possession of a leasehold interest under the Anti-Eviction
Act, N.J.S.A. .2A:18-61.1 et seq., the New Jersey Foreclosure Fairness
Act, N.J.S.A. 2A:50-69 et seq., or any other applicable law.
j.
Notwithstanding paragraph (3) of subsection a. of section 12 of N.J.S.A. 2A:50-64 to the contrary, if the court makes a finding in the foreclosure judgment that the property is vacant and abandoned, the sheriff shall sell the property within 60 days of the sheriff's receipt of any writ of execution issued by the court. If it becomes apparent that the sheriff cannot comply with the provisions of this subsection, the foreclosing plaintiff may apply to the court for an order appointing a Special Master or judicial agent to hold the foreclosing sale.
