I 

114TH CONGRESS 

1ST SESSION H. R. 3203 

To require prompt responses by mortgage owners of homes in foreclosure 

to short sale offers to purchase such homes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 23, 2015 

Mr. HIGGINS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require prompt responses by mortgage owners of homes 

in foreclosure to short sale offers to purchase such 

homes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Vacant Homes Act 

5 of 2015’’. 

6 SEC. 2. PROMPT RESPONSE REQUIRED. 

7 (a) BEFORE FORECLOSURE.— 

8 (1) 90 DAYS PROVIDED TO RESPOND.—With re9 spect to a home in foreclosure, the mortgage owner 

10 of such home who receives notice from the owner of 


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1 such home (or from such owner’s designee) of a 

2 qualified offer to buy such home in a short sale 

3 shall, no later than 90 days after receipt of such no4 tice, provide a response to— 

5 (A) such homeowner; and 

6 (B) the person who made such offer. 

7 (2) CERTIFICATION REQUIRED WHEN OWNER

8 IN IMMINENT DEFAULT.—If such home is a home in 

9 foreclosure only because the owner is in imminent 

10 default on a loan secured by a mortgage of such 

11 home, a communication from such owner (or des12 ignee) to such mortgage owner does not constitute 

13 ‘‘notice’’ under paragraph (1) unless such owner cer14 tifies in such notice that he or she is in imminent 

15 default on such loan. 

16 (3) CONTENTS OF RESPONSE.—A response de17 scribed under paragraph (1) shall— 

18 (A) state that such mortgage owner ac19 cepts the offer; or 

20 (B) state that such mortgage owner rejects 

21 the offer and adequately provide a reason for 

22 such rejection. 

23 (4) SUFFICIENT RESPONSES.—A response de24 scribed under paragraph (1) which states that such 


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1 mortgage owner rejects the offer adequately provides 

2 a reason for such rejection only if it provides— 

3 (A) a counteroffer stating— 

4 (i) an alternative price at which the 

5 mortgage owner would approve the offer; 

6 and 

7 (ii) an economic analysis dem8 onstrating a reasonable expectation that, 

9 within the 1-year period following the 90- 

10 day period under subsection (a), the 

11 home’s fair market value will likely be 

12 equal or greater than such alternative 

13 price; 

14 (B) proof that the home’s title is encum15 bered such that the transfer of title proposed by 

16 the offer is prohibited; 

17 (C) proof that another mortgage owner of 

18 the home prohibits its being the subject of a 

19 short sale; or 

20 (D) proof that an enforceable contract be21 tween the mortgage owner and another person 

22 prohibits the mortgage owner from approving 

23 the offer. 

24 (b) AFTER FORECLOSURE.— 


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1 (1) 90 DAYS PROVIDED TO RESPOND.—With re2 spect to a foreclosed home, the owner of such home 

3 (or a servicer acting on behalf of the owner) who re4 ceives a qualified offer to buy such home shall, no 

5 later than 90 days after receipt of such offer, pro6 vide a response to the person who made such offer. 

7 (2) CONTENTS OF RESPONSE.—A response de8 scribed under paragraph (1) shall— 

9 (A) state that such owner or servicer ac10 cepts the offer; or 

11 (B) state that such owner or servicer re12 jects the offer and adequately provide a reason 

13 for such rejection. 

14 (3) SUFFICIENT RESPONSES.—A response de15 scribed under paragraph (1) which states that such 

16 mortgage owner rejects the offer adequately provides 

17 a reason for such rejection only if it provides— 

18 (A) a counteroffer stating— 

19 (i) an alternative price at which the 

20 mortgage owner would approve the offer; 

21 and 

22 (ii) an economic analysis dem23 onstrating a reasonable expectation that, 

24 within the 1-year period following the 90- 

25 day period under subsection (a), the 


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1 home’s fair market value will likely be 

2 equal or greater than such alternative 

3 price; or 

4 (B) proof that the home’s title is encum5 bered such that the transfer of title proposed by 

6 the offer is prohibited. 

7 SEC. 3. PRIVATE RIGHTS OF ACTION. 

8 (a) FOR HOMEOWNERS.—A homeowner who has pro9 vided a mortgage owner with notice of a qualified offer 

10 under section 2(a) and does not within 90 days receive 

11 the response required thereunder may bring a civil action 

12 in the district court of the United States for the district 

13 in which such home is located against an entity required 

14 to provide such response. 

15 (b) FOR OFFERORS.—A person who has made a 

16 qualified offer to purchase a home in foreclosure or a fore17 closed home and does not receive a response within the 

18 90-day period applicable under section 2(a) or 2(b) may 

19 bring a civil action in the district court of the United 

20 States for the district in which such home is located 

21 against an entity required to provide such response. 

22 (c) RELIEF.—The relief sought in a civil action under 

23 subsection (a) or (b) may include an order requiring the 

24 defendant to comply with section 2. 


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1 SEC. 4. AUTHORITY GRANTED TO THE BUREAU OF CON2 SUMER FINANCIAL PROTECTION. 

3 (a) ENFORCEMENT AUTHORITY.—The Bureau of 

4 Consumer Financial Protection may apply to the district 

5 court of the United States for the district in which a home 

6 in foreclosure or a foreclosed home is located for an order 

7 requiring— 

8 (1) the mortgage owner of such home in fore9 closure to comply with section 2, and for such other 

10 relief as the court may deem appropriate to carry 

11 out this Act; or 

12 (2) the owner of such foreclosed home (or a 

13 servicer acting on behalf of such owner) to comply 

14 with section 2, and for such other relief as the court 

15 may deem appropriate to carry out this Act. 

16 (b) RULEMAKING AUTHORITY.—The Bureau of Con17 sumer Financial Protection shall have the power to make 

18 such rules as may be necessary or appropriate to carry 

19 out this Act. 

20 SEC. 5. DEFINITIONS. 

21 As used in this Act: 

22 (a) DWELLING; HOME.—The terms ‘‘dwelling’’ and 

23 ‘‘home’’ have the meaning given the term ‘‘dwelling’’ 

24 under section 103 of the Truth in Lending Act (15 U.S.C. 

25 1602). 


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1 (b) FORECLOSED HOME.—The term ‘‘foreclosed 

2 home’’ means a dwelling whose owner obtained such dwell3 ing— 

4 (1) by reason of the acceptance by such owner 

5 (or by a servicer acting on behalf of such owner) of 

6 a deed in lieu of foreclosure on a mortgage of that 

7 dwelling; or 

8 (2) by reason of foreclosure on a mortgage of 

9 that dwelling by such owner (or by a servicer acting 

10 on behalf of such owner). 

11 (c) HOME IN FORECLOSURE.—The term ‘‘home in 

12 foreclosure’’ means a dwelling— 

13 (1) whose owner is in imminent default on a 

14 loan secured by a mortgage of such dwelling; 

15 (2) whose owner has defaulted on a loan se16 cured by a mortgage of such dwelling; or 

17 (3) which is the subject of a foreclosure pro18 ceeding. 

19 (d) IMMINENT DEFAULT.—The term ‘‘imminent de20 fault’’ with respect to a loan obligation means a situation 

21 in which the obligor under such loan— 

22 (1) is current, or delinquent by less than 30 

23 days, on the obligation under such loan; and 

24 (2) is experiencing a significant reduction in in25 come or other hardship that will severely limit his or 


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1 her ability to make the next required payment on 

2 such loan. 

3 (e) MORTGAGE.—The term ‘‘mortgage’’ includes a 

4 deed of trust or other security interest in real property. 

5 (f) MORTGAGE OWNER.—The term ‘‘mortgage 

6 owner’’ with respect to a dwelling means— 

7 (1) the mortgagee of such dwelling; 

8 (2) the obligee of a loan secured by a mortgage 

9 of such dwelling; or 

10 (3) the servicer of a loan secured by a mortgage 

11 of such dwelling. 

12 (g) QUALIFIED OFFER.— 

13 (1) IN GENERAL.—The term ‘‘qualified offer’’ 

14 means an offer to buy a home for at least the lowest 

15 of— 

16 (A) half the assessed value of a home for 

17 the purposes of State or local taxation; or 

18 (B) half the value of a home as established 

19 by a private appraisal. 

20 (2) NO APPRAISAL OR ASSESSMENT.—If a home 

21 that is the subject of an offer to buy has not been 

22 assessed for tax purposes or by a private appraisal, 

23 such offer shall be deemed to be a qualified offer if 

24 it includes an offer to pay at least half the home’s 

25 value as estimated for accounting purposes by— 


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1 (A) if it is a foreclosed home, its owner; or 

2 (B) if it is a home in foreclosure, its mort3 gage owner. 

4 (h) SERVICER.—The term ‘‘servicer’’ has the mean5 ing given such term under section 6(i)(2) of the Real Es6 tate Settlement Procedures Act of 1974 (12 U.S.C. 

7 2605(i)(2)), and includes a person who was a servicer of 

8 a loan secured by a dwelling before that dwelling became 

9 a foreclosed home. 

10 (i) SHORT SALE.—The term ‘‘short sale’’ means a 

11 transaction— 

12 (1) involving the sale of a dwelling that is the 

13 subject of a mortgage securing a loan for less than 

14 the amount of the outstanding obligation under such 

15 loan; and 

16 (2) in which the mortgage owner of such dwell17 ing— 

18 (A) accepts the proceeds of such sale in 

19 partial or complete satisfaction of such loan; 

20 and 

21 (B) releases the mortgage of such dwelling. 

Æ 


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