A. Any mortgagee who holds a mortgage on real property located within the Village shall perform an inspection of the property upon it being in default or defaulted by the mortgagor or prior to the issuance of a notice of default.
B. Property inspected pursuant to subsection A of this section that remains in default or defaulted, shall be inspected every thirty (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 (10) days of that inspection, update the occupancy status of the property registration.
C. Within ten (10) days of the date any mortgagee declares its mortgage to be in default or defaulted, the mortgagee shall register the real property with the Village registry, and, 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 in default or defaulted. A separate registration is required for each defaulted property.
D. 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.
E. At the time of initial registration each registrant shall pay a non-refundable semi-annual registration fee of one hundred fifty dollars ($150.00) for each defaulted property. Subsequent semi-annual registrations of defaulted properties and fees in the amount of one hundred fifty dollars ($150.00) are due within ten (10) days of the expiration of the previous registration. Said fees shall be used to offset the costs of: 1) registration and registration enforcement, 2) code enforcement and mitigation related to defaulted properties, and 3) for any related purposes or as may be adopted in the policy set forth in this chapter. Said fees shall be deposited to an account of the Village used for the cost of implementation and enforcement of this chapter and fulfilling the purpose and intent of this chapter. None of the funds provided for in this section shall be utilized for the legal defense of foreclosure actions.
F. Each individual property on the registry that has been registered for twelve (12) months or more prior to the effective date shall have thirty (30) days to renew the registration and pay the one hundred fifty dollar ($150.00) semi-annual registration fee. Properties registered less than twelve (12) months prior to the effective date shall renew the registration every six (6) months from the expiration of the original registration renewal date and shall pay the one hundred fifty dollars ($150.00).
G. If the defaulted mortgage and/or servicing on a property is sold or transferred, the new mortgagee is subject to all the terms of this chapter. Within ten (10) days of the transfer, the new mortgagee shall register the property or update the existing registration. 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 defaulted property.
H. If the mortgagee sells or transfers the defaulted 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 (10) 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 defaulted property.
I. 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. Properties subject to this section shall remain subject to the semi-annual registration requirement, and the inspection, security, and maintenance standards of this section as long as the property remains defaulted.
K. 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 Village.
L. Properties registered as a result of this section are not required to be registered again pursuant to the real property that is not subject to a mortgage in default section. (Ord. 2018-55, 10-18-2018)