(A) Inspection required. Any mortgagee who holds a mortgage on real property located within the city shall perform an inspection of the property upon default by the mortgagor as evidenced by the filing of a foreclosure action.
(B) Occupancy status. Property that remains in foreclosure shall be inspected every 30 days by the mortgagee or mortgagee's designee. If an inspection shows a change in the property's occupancy status the mortgagee shall, within ten days of that inspection, update the occupancy status of the property registration.
(C) Registration required. Within ten days of the date any mortgagee files a foreclosure action, the mortgagee shall perform all of the following:
(1) Register the real property with the city registry; and
(2) At the time of registration, indicate whether the property is vacant, and if so shall designate in writing a property manager to inspect, maintain, and secure the real property subject to the mortgage under a foreclosure action.
(D) Individual property registrations. A separate registration is required for each property under a foreclosure action, regardless of whether it is occupied or vacant.
(E) Informational requirements. Initial registration pursuant to this section shall contain at a minimum the name of the mortgagee, the mailing address of the mortgagee, e-mail address, telephone number and name of the property manager and said person's address, e-mail address, and telephone number.
(F) Existing properties; renewal. Each individual property on the registry that has been registered for 12 months or more prior to the effective date shall have 30 days to renew the registration and pay the non-refundable semi-annual registration fee. Properties registered less than 12 months prior to the effective date shall renew the registration every six months from the expiration of the original registration renewal date and shall pay the non-refundable semi-annual registration fee.
(G) Sale or transfer of mortgage. If the mortgage and/or servicing on a registrable property is sold or transferred, the new mortgagee is subject to all the terms of this chapter. Within ten days of the transfer, the new mortgagee shall register the property or update the existing registration.
(1) The previous mortgagee(s) will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the registrable property.
(2) If the mortgagee sells or transfers the registrable property in a non-arm's length transaction to a related entity or person, the transferee is subject to all the terms of this chapter. Within ten days of the transfer, the transferee shall register the property or update the existing registration. Any and all previous unpaid fees, fines, and penalties, regardless of who the mortgagee was at the time registration was required, including, but not limited to, unregistered periods during the foreclosure process, are the responsibility of the transferee and are due and payable with the updated registration. The previous mortgagee will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties accrued during that mortgagee's involvement with the foreclosed property.
(H) Past-due registration. If the foreclosing or foreclosed property is not registered, or the registration fee is not paid within 30 days of when the registration or renewal is required pursuant to this section, a late fee equivalent to 10% of the semi- annual registration fee shall be charged for every 30-day period, or portion thereof, the property is not registered and shall be due and payable with the registration.
(I) Deed in lieu of foreclosure. This section shall also apply to properties that have been the subject of a foreclosure sale where title is transferred to the mortgagee as well as any properties transferred to the mortgagee under a deed in lieu of foreclosure or by any other legal means.
(J) Continuing obligation. Properties subject to this chapter, including the inspection, security, and maintenance standards of this chapter, shall remain so as long as the property continues to be registrable property.
(K) Failure to register. Failure of the mortgagee and/or property owner of record to properly register or to modify the registration to reflect a change of circumstances as required by this chapter is a violation of this chapter and shall be subject to enforcement by any of the enforcement means available to the city.
(L) Recovery of costs. If any property is in violation of this chapter the city may take the necessary action to ensure compliance with and/or place a lien on the property for the cost of the outstanding obligation and any additional cost incurred in bringing the property into compliance.
(Ord. 04-2020, passed 3-17-20)