BILL NUMBER: S6146

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to registration of mortgages in default

 
PURPOSE:

To provide municipalities with a fee structure for the maintenance of
foreclosure registration databases.

 
SUMMARY OF PROVISIONS:

Section 1 amends the law to allow for the imposition of a fee of up to
five hundred dollars on an annual basis.

Section two provides for an immediate effective date.

 
JUSTIFICATION:
              

Chapter 600 of 2022 was originally enacted to ensure that any fees
charged by municipalities to enrolling in the mortgage foreclosure data-
base are not passed along to the foreclosed upon homeowner. This prac-
tice ensures that the new owner of the foreclosed property is properly
charged with the database fees. These databases are critical tools for
municipalities to combat blight and ensure upkeep of the properties
while they move through the court system. As set the fees are inadequate
to reflect the costs of maintaining these databases and are also incon-
sistent with local laws establishing these databases throughout the
State. Municipalities had previously budgeted for these fees and have
working databases in place, this legislation will ensure municipalities
do not have to repeal or amend their existing programs. This will bring
fees in line with what is done in New Jersey

 
LEGISLATIVE HISTORY:

2023-24: S7220A- REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL-
OPMENT

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Immediately.