This bill amends existing legislation to enhance the responsibilities of creditors involved in foreclosure actions on commercial and residential properties. It requires creditors to maintain the interior of vacant and abandoned properties, a significant shift from previous regulations that focused primarily on exterior maintenance. Creditors must notify municipal officials within 10 days of serving a foreclosure summons and complaint, providing contact information for responsible representatives. If a property is found to be a nuisance or in violation of local codes, creditors are obligated to address these issues within a specified timeframe. Municipalities are also empowered to adopt ordinances for property registration programs to monitor and regulate the upkeep of such properties.

The legislation introduces new provisions that hold creditors accountable for both interior and exterior maintenance, including the appointment of an in-state representative for out-of-state creditors. It allows municipalities to impose registration fees and fines of $1,500 for each day a maintenance violation concerning the interior remains uncorrected, with specific correction windows based on the severity of the violation. Additionally, the bill clarifies that municipalities can impose penalties similar to those applicable to property title owners if creditors fail to remedy violations after notification. Overall, the bill aims to protect community health and safety by ensuring that creditors are responsible for the upkeep of properties in foreclosure.

Statutes affected:
Introduced: 40:48-2.12, 46:10B-51