Bill Text: NJ S1740 | 2012-2013 | Regular Session | Introduced
Bill Title: Authorizes municipalities to impose penalties on creditors that fail to timely remedy code violations of certain properties in forclosure.*
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2012-12-03 - Received in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee [S1740 Detail]
Download: New_Jersey-2012-S1740-Introduced.html
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Allows municipalities to require mortgage lenders to maintain vacant residential properties during foreclosure.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning maintenance of residential properties during foreclosure and supplementing Title 40 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A creditor that serves a notice of intention to foreclose on a mortgage on residential property in this State pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.), shall serve the public officer of the municipality in which the property is located, or, if the municipality has not designated a public officer pursuant to P.L.1942, c.112 (C.40:48-2.3 et seq.), the municipal clerk, with a copy of the notice at the same time that the creditor serves the notice on the owner of the property. The creditor shall include the full name and contact information of a person located within the State who is authorized to accept service on behalf of the creditor with the copy of the notice served on the public officer or municipal clerk.
b. If the residential property becomes vacant at any time after the creditor files the notice of intention to foreclose, but prior to vesting of title in any third party, and the municipality determines that the property is in violation of any applicable State or local housing code, the municipality may notify the creditor of the violation, by providing a copy of the notice to the person located within the State who is authorized to accept service on behalf of the creditor, and may require the creditor to correct the violation.
c. A municipality that requires a creditor to correct a violation pursuant to this act 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 R.S.40:49-5.
d. For the purposes of this section, "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 Residential Mortgage Lending Act," sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.), and any entity acting on behalf of the creditor named in the debt obligation including, but not limited to, servicers.
2. This act shall take effect 60 days following enactment.
STATEMENT
This bill allows a municipality to require a creditor who initiates a foreclosure proceeding against a residential property located in the municipality to maintain the property in accordance with State and local housing codes if the property becomes vacant during the foreclosure proceeding.
The bill requires a creditor that serves a notice of intention to foreclose on a mortgage on residential property in this State pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.), to serve the public officer or municipal clerk of the municipality in which the property is located, with a copy of the notice at the same time that the creditor serves the notice on the owner of the property. The creditor shall include the full name and contact information of a person located within the State who is authorized to accept service on behalf of the creditor with the copy of the notice served on the public officer or municipal clerk.
The bill also provides that if the residential property becomes vacant at any time after the creditor files the notice of intention to foreclose, but prior to vesting of title in any third party, and the municipality determines that the property is in violation of any applicable State or local housing code, the municipality may provide the creditor with notice of the violation, and may require the creditor to correct the violation.
Further, the bill provides that a municipality that requires a creditor to correct a violation pursuant to this bill 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 for the creditor to remedy the violation. If the creditor fails to remedy the violation within that time period, the bill allows the municipality to impose penalties currently allowed for the violation of municipal ordinances pursuant to R.S. 40:49-5.
