Politics & Government

Red Bank Demands Bank Responsibility on Foreclosed Homes

A new ordinance requires banks to register with the borough when they assume ownership of a vacant property.

In an effort to prevent the deterioration of its neighborhoods, Red Bank is demanding more responsibility from banks that foreclose and take ownership of homes throughout the borough.

At its meeting Wednesday night, council approved an ordinance on first reading calling for banks to inform the borough of properties as they become vacant, register when it assumes ownership of a property, and provide regular property maintenance in an effort to reduce blight.

Backed by state law that requires banks to communicate when they assume control of a property, Mayor Pat Menna said the local ordinance is designed to make it easier for borough officials who are often given the run around when it comes to finding out who is responsible for a vacant property.

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“It does take our officials a long time to reach these banks who change more frequently then we change our underwear,” he quipped.

Among the provisions of the ordinance are that banks notify the borough when a home is vacant by registering – at a cost of $125 – and erecting a sign on the property that provides a bank name and contact information. Menna said properties in the process of being foreclosed aren’t impacted until the homes are vacant and ownership is transferred.

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The most significant problem is maintenance of the properties, which is often left unattended when banks take over, Menna said. The ordinance calls for monthly inspection by borough officials to make sure that issues like overgrown grass, trash and litter piling up, and vandalism are attended to.

“This is all about protecting our neighborhoods from blight,” Councilman Mike DuPont said.


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