68 Pa. C.S. § 2304

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 2304 - Certification of vacant and abandoned mortgaged property

(a)General rule.--After a creditor gives notice to an obligor of a delinquency or other default with respect to an obligation secured by a mortgage or initiates a foreclosure action or action for possession or to quiet title, a mortgaged property for which the notice is given or proceedings are initiated shall be certified as vacant and abandoned if:

(1) a creditor or purchaser has been designated as a conservator of the mortgaged property under section 5 of the act of November 26, 2008 ( P.L. 1672, No.135), known as the Abandoned and Blighted Property Conservatorship Act;

(2) the mortgaged property is certified as vacant and abandoned by the municipality in which the mortgaged property is located in the manner provided under subsection (b); or

(3) the mortgaged property is certified as vacant and abandoned in a proceeding in the manner provided under subsection (c).

(b) Municipal certification.--A mortgaged property shall be deemed vacant and abandoned by the municipality in which the mortgaged property is located if:

(1) A creditor requests that the municipal code enforcement officer for the municipality make a determination that the mortgaged property is vacant and abandoned.

(2) The municipal code enforcement officer inspects the mortgaged property, determines that the mortgaged property is vacant and abandoned under the requirements of section 2305 (relating to requirements to certify mortgaged property as vacant and abandoned) and gives notice of the determination and an opportunity for hearing to the owner or an obligor other than the owner in the manner required under 2 Pa.C.S. § 553 (relating to hearing and record) or as otherwise provided by law for the giving notice of municipal code violations and to contest determinations that violations have occurred.

(3) The creditor pays or agrees to pay a fee not to exceed 110% of the reasonable costs for the municipal code inspection officer to conduct an inspection of the mortgaged property, to prepare a report of the inspection, to give notice of the results of the inspection to the creditor and the obligor and to participate in an appeal of a determination that the mortgaged property is vacant and abandoned.

(4) The owner or obligor, after receiving notice and an opportunity for a hearing, fails to seek review of a determination that the mortgaged property is vacant and abandoned by the municipal board of appeals within 30 days or, if a timely request for review is filed, a final determination is made that the mortgaged property is vacant and abandoned.

(c)Judicial certification.--A mortgaged property shall be deemed certified as vacant and abandoned in a proceeding as follows:

(1) In a proceeding, a creditor or purchaser may file a request with the prothonotary to issue a rule to show cause why the mortgaged property should not be certified as vacant and abandoned by submitting an affidavit:

(i) supported as appropriate by images or other appropriate evidence, alleging that the mortgaged property qualifies for certification as vacant and abandoned under the requirements of section 2305; and

(ii) submitted subject to the penalties for false swearing under 18 Pa.C.S. § 4903 (relating to false swearing).

(iii) The request may be filed together with the original complaint in the proceeding or at any time during the course of the proceeding.

(2) The affidavit that the mortgaged property is vacant and abandoned may be provided by a municipal code enforcement officer, the creditor or purchaser or by a competent adult who has personal knowledge of the condition of the mortgaged property, including a property inspector or agent retained by a creditor.

(3) A request for a rule to show cause need not be served on the owner of the mortgaged property or an obligor other than the owner, but the rule issued by the prothonotary shall be served on the owner or obligor in the manner provided under paragraph (5).

(4) Within 10 business days of receipt of the request for a rule to show cause, the prothonotary shall provide a rule to show cause to the creditor or purchaser if the affidavit contains assertions of fact that comply with the requirements for certification as vacant and abandoned as provided under section 2305.

(5) The rule to show cause shall be served on the owner and an obligor other than the owner by the creditor or purchaser as follows:

(i) If the owner or an obligor other than the owner is represented by counsel in a proceeding in which the rule to show cause is issued, the rule may be served by delivery of the rule to show cause to counsel for the owner or obligor.

(ii) If the owner or an obligor other than the owner is not represented by counsel in the proceeding, the creditor shall make at least three attempts to personally serve the rule to show cause. Attempts at personal service may occur at the property address and the address specified in the county tax assessor's office for the delivery of property tax bills for the mortgaged property. The attempts shall be at least 72 hours apart and at reasonable and different times of the day. If the creditor cannot complete personal service on a party, service may be completed by delivery of notice by first class mail to the addresses at which personal service may be made and by posting of the property in a conspicuous manner.

(iii) A rule to show cause may be served on the owner or an obligor other than the owner in the manner provided under this paragraph regardless of whether service of a complaint in a proceeding has been completed.

(6) A copy of the rule to show cause shall be delivered by the creditor or purchaser by first class mail to the municipal code enforcement officer for the municipality where the mortgaged property is located.

(7) An obligor may respond to the rule to show cause by filing with the court a statement, submitted under oath or affirmation that attests the statement is true and subject to the penalties under 18 Pa.C.S. § 4903, that the mortgaged property is not vacant and abandoned on a form provided by the creditor or purchaser as specified below and containing other information as may be required by the court . Only response blocks to deny averments of indicia that a property is vacant or abandoned provided in the request for issuance of the rule to show cause shall be included in the form. The response shall include:

(i) Matter name and docket number.

(ii) Respondent or respondents.

(iii) Address or mortgaged property.

(iv) The respondent or respondents to this rule to show cause certify that the mortgaged property is not vacant and abandoned for the following reasons as designed by checking all appropriate spaces below:

....The property is not vacant and has been occupied within the last 45 days by (specify name or names of persons).

....Multiple windows, doors or entrances on the property are not boarded up, unhinged, closed off, smashed in or are continuously unlocked.

....The mortgaged property has not been stripped of copper or other metals.

....Interior furnishings, personal items, appliances or fixtures have not been removed from the mortgaged property, including window treatments, such as blinds, curtains or shutters.

....Gas, electric, water or sewer utility services have not been terminated to the mortgaged property or are established in the name of the creditor to preserve the mortgaged property.

....Newspapers, circulars, flyers or mail have not accumulated on the mortgaged property.

....The United States Postal Service has not discontinued delivery to the mortgaged property.

....Rubbish, trash, debris, neglected vegetation or natural overgrowth has not accumulated on the mortgaged property.

....Hazardous, noxious or unhealthy substances or materials have not accumulated on the mortgaged property.

....No communications have occurred between respondents and (name of the creditor or purchaser) stating an intent to vacate or abandon the property.

With respect to the following violations of municipal building or housing code (violation to be specified by the creditor or purchaser).

....No citations alleging violations have been received.

....Answers alleging that the violations did not occur and at this time no final determination has been made regarding whether the violations exist, or the citations were dismissed.

....The violations have been corrected within the preceding year.

The respondent or respondents whose signature appears below certify under the penalties provided under 18 Pa.C.S. § 4903 (relating to false swearing) with respect to official matters that the statements above are true and correct.

(Signature of the respondent or respondents).

(8) If a response to the rule to show cause is not filed within 20 days after being served, the court shall render an order certifying the mortgaged property as vacant and abandoned.

(9) If a timely response to the rule to show cause is filed, the court shall schedule a hearing to determine if credible evidence exists to certify the mortgaged property as vacant and abandoned within not fewer than 20 nor more than 30 days after proof of service of the rule to show cause in the manner provided under paragraph (5).

68 Pa.C.S. § 2304

Added by P.L. TBD 2018 No. 32, § 1, eff. 12/16/2018.