Township of Montclair, NJ Article III Properties Subject to Foreclosure

[Adopted 2-16-2016 by Ord. No. O-16-002; amended in its entirety 12-20-2022 by Ord. No. O-22-28]

§ 249-13 Additional requirements for properties subject to foreclosure.

A. Any creditor filing a summons and complaint in an action to foreclose shall, in addition to the notice provided to the municipality pursuant to Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51), or Section 2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2), register the residential or commercial property with the municipality's property registration program as a property in foreclosure and, as part of that registration, (provide the municipality with the information regarding the creditor required by Paragraph (1) of Subsection a of Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51), or Paragraph (1) of Subsection a of Section 2 of P.L. 2021, c. 444 (N.J.S.A. 40:48-2.12s2); identify the date the summons and complaint in an action to foreclose on a mortgage was filed against the subject property, the court in which it was filed, and the docket number of the filing; and identify whether the property is vacant or abandoned in accordance with the definition in Article I of this chapter.

B. Any creditor filing a summons and complaint in an action to foreclose on a vacant or abandoned property shall be responsible for the care, maintenance, security, and upkeep of the exterior of the subject property.

C. The registrant shall pay $500 per property annually for any property that is required to be registered in accordance with § 249-13 et seq.

D. If the registered property becomes vacant or abandoned in accordance with § 249-1 et seq. after the property is initially registered with the municipality, an updated property registration must be filed with the municipality to reflect the change in the property's status, and all applicable fees as provided in § 249-4 must be paid.

E. Any creditor filing a summons and complaint in an action to foreclose on a residential or commercial mortgage shall register with the municipality in accordance with § 249-1 et seq. and pay the registration fee as provided in § 249-4. If located out of state, the creditor shall be responsible for appointing an in-state representative or agent to act for the foreclosing creditor.

F. Adhere to all requirements of § 249-1 et seq. and all municipal ordinances, state and federal laws, rules, and regulations.

G. The Manager, or his/her designee or delegate, or any Zoning and Code Enforcement Inspector or any other local official responsible for administration of any property maintenance or public nuisance code (a "public officer") is hereby authorized pursuant to P.L. 1942, c. 112 (N.J.S.A. 40:48-2.3 et seq.), to issue a notice to the creditor filing the summons and complaint in an action to foreclose if the public officer or other authorized municipal official determines that the creditor has violated this article 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.

H. An out of state creditor filing a summons and complaint in an action to foreclose on a vacant or abandoned property shall include the full name and contact information of the in-state representative or agent in the notice required to be provided pursuant to Paragraph (1) of Subsection a of Section 17 of P.L. 2008, c. 127 (N.J.S.A. 46:10B-51).

I. Violations of § 249-13 et seq. are punishable as follows:

(1) An out of state creditor subject to this article 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 article 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 ten-day period set forth in Paragraph (1) of Subsection a of Section 17 of P.L. 2008, c. 127 (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.

(2) A creditor subject to the requirements of this article found by the Municipal Court, or by any other court of competent jurisdiction, to be in violation of the requirement to correct a care, maintenance, security, or upkeep violation cited in a notice issued pursuant to this article shall be subject to a fine of $1,500 for each day of the violation. Any fines imposed pursuant to this subsection shall commence 31 days following receipt of the notice, except if the violation presents an imminent risk to public health and safety, in which case any fines shall commence 11 days following receipt of the notice.

J. All money collected pursuant to this article shall be utilized by the municipality for municipal code enforcement purposes.