Foreclosure

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  1. (a) If an individual under contract with the municipality fails to fulfill the commitment to live within the residential structure for the contract period, the municipality after proper notice may file a lien against the real property in the amount of the contract plus costs of foreclosure.

  2. (b) The municipality shall be entitled to collect the amount of the contract, plus any costs of collection including attorney's fees, by either of the following methods:

    1. (1)

      1. (A) By filing an action to foreclose the lien plus costs at any time within one (1) year of the date that the municipality has notice that the resident owner moved out of the structure in breach of contract with the municipality.

      2. (B) In such case, the date the municipality filed the lien shall determine its priority in relation to other liens against the property; or

    2. (2)

      1. (A)

        1. (i) If the legislative body of the municipality determines that it is in the best interests of the municipality to do so, the amount of the lien provided for in this subsection may be collected by the county clerk in the same manner as property taxes, if the municipality has filed the contract in the real estate records of the county in which the property is located.

        2. (ii) In such case, the date of filing the contract determines the priority of the lien.

      2. (B) In order to pursue this remedy, the municipality shall set forth the exact amount of the lien, with costs, in a resolution adopted at a hearing before the governing body of the municipality in accordance with the following procedure:

        1. (i) The hearing shall be held not fewer than thirty (30) days after receipt of written notice by certified mail, with restricted delivery and return receipt requested, to the owner of the property if the name and whereabouts of the owner are known;

        2. (ii) If the name and whereabouts of the owner cannot be determined, or if restricted delivery of certified mail is not accomplished, then the hearing to determine the amount shall be held not fewer than fourteen (14) days after publication of notice of the hearing in a newspaper having a bona fide circulation in the county where the property is located for one (1) insertion per week for four (4) consecutive weeks; and

        3. (iii)

          1. (a) The amount so determined at the hearing, plus a ten percent (10%) penalty for collection, shall be certified by the governing body of the municipality to the tax collector of the county where the municipality is located and placed by the collector on the tax books as delinquent taxes and collected accordingly.

          2. (b) The amount, less three percent (3%) thereof, when so collected shall be paid to the municipality by the county tax collector.


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