Foreclosure Notification Ordinance to Get a Once Over

Red Bank’s council wants to prevent blight in its neighborhoods by ensuring that the owners of . It’s a simple enough proposition, but how, exactly, the borough plans on enforcing new rules is something that’s going to require continued discussion.

At its , Councilwoman Sharon Lee asked that board consider tabling an ordinance that would, among other things, require entities that have taken over foreclosed homes – presumably banks – to notify the borough of the change in ownership and develop plans to maintain the properties from becoming an eyesore in the neighborhood.

Though she’s in favor of the ordinance, Lee said she wanted more of an opportunity to discuss its finer details with Red Bank code enforcement. The request was approved by the rest of the council, pushing off a vote on the ordinance for at least one more meeting.

The ordinance is intended to force banks to be more responsible when it comes to tending to the properties they assume through foreclosure. Not only are the banks required to maintain the property, but they’re required to register with the borough to ensure that there’s always someone who can be reached if an issue arises.

“We take pride in the condition of our neighborhoods,” Councilman Mike DuPont said. “And it is important considering the current foreclosure epidemic that these (new owners) maintain their property.”

Often, when banks take over the property, DuPont said they fail to provide regular upkeep, like mowing the lawn. Borough code enforcement officials have sometimes struggled in the past to track down a property’s ownership as nebulous bank hierarchies and out of date paper work make it difficult to find out who’s name a home is in.

One of the issues with the ordinance, however, is that it requires a sign be posted that highlights the property as a foreclosure. Though the sign is little more than a standard 8 by 11 piece of paper size, Lee said she was concerned that the notification itself would contribute to blight. Not only would the home be easily identified as a foreclosure, but the property might become the target of vandals.

“I think it’s going to be disruptive to the neighborhood,” she said.