Vacant Homes Act of 2015

To require prompt responses by mortgage owners of homes in foreclosure to short sale offers to purchase such homes, and for other purposes. 1. Short title This Act may be cited as the Vacant Homes Act of 2015 2. Prompt response required (a) Before Foreclosure (1) 90 days provided to respond With respect to a home in foreclosure, the mortgage owner of such home who receives notice from the owner of such home (or from such owner’s designee) of a qualified offer to buy such home in a short sale shall, no later than 90 days after receipt of such notice, provide a response to— (A) such homeowner; and (B) the person who made such offer. (2) Certification required when owner in imminent default If such home is a home in foreclosure only because the owner is in imminent default on a loan secured by a mortgage of such home, a communication from such owner (or designee) to such mortgage owner does not constitute notice (3) Contents of response A response described under paragraph (1) shall— (A) state that such mortgage owner accepts the offer; or (B) state that such mortgage owner rejects the offer and adequately provide a reason for such rejection. (4) Sufficient responses A response described under paragraph (1) which states that such mortgage owner rejects the offer adequately provides a reason for such rejection only if it provides— (A) a counteroffer stating— (i) an alternative price at which the mortgage owner would approve the offer; and (ii) an economic analysis demonstrating a reasonable expectation that, within the 1-year period following the 90-day period under subsection (a), the home’s fair market value will likely be equal or greater than such alternative price; (B) proof that the home’s title is encumbered such that the transfer of title proposed by the offer is prohibited; (C) proof that another mortgage owner of the home prohibits its being the subject of a short sale; or (D) proof that an enforceable contract between the mortgage owner and another person prohibits the mortgage owner from approving the offer. (b) After foreclosure (1) 90 days provided to respond With respect to a foreclosed home, the owner of such home (or a servicer acting on behalf of the owner) who receives a qualified offer to buy such home shall, no later than 90 days after receipt of such offer, provide a response to the person who made such offer. (2) Contents of response A response described under paragraph (1) shall— (A) state that such owner or servicer accepts the offer; or (B) state that such owner or servicer rejects the offer and adequately provide a reason for such rejection. (3) Sufficient responses A response described under paragraph (1) which states that such mortgage owner rejects the offer adequately provides a reason for such rejection only if it provides— (A) a counteroffer stating— (i) an alternative price at which the mortgage owner would approve the offer; and (ii) an economic analysis demonstrating a reasonable expectation that, within the 1-year period following the 90-day period under subsection (a), the home’s fair market value will likely be equal or greater than such alternative price; or (B) proof that the home’s title is encumbered such that the transfer of title proposed by the offer is prohibited. 3. Private rights of action (a) For homeowners A homeowner who has provided a mortgage owner with notice of a qualified offer under section 2(a) and does not within 90 days receive the response required thereunder may bring a civil action in the district court of the United States for the district in which such home is located against an entity required to provide such response. (b) For offerors A person who has made a qualified offer to purchase a home in foreclosure or a foreclosed home and does not receive a response within the 90-day period applicable under section 2(a) or 2(b) may bring a civil action in the district court of the United States for the district in which such home is located against an entity required to provide such response. (c) Relief The relief sought in a civil action under subsection (a) or (b) may include an order requiring the defendant to comply with section 2. 4. Authority granted to the Bureau of Consumer Financial Protection (a) Enforcement authority The Bureau of Consumer Financial Protection may apply to the district court of the United States for the district in which a home in foreclosure or a foreclosed home is located for an order requiring— (1) the mortgage owner of such home in foreclosure to comply with section 2, and for such other relief as the court may deem appropriate to carry out this Act; or (2) the owner of such foreclosed home (or a servicer acting on behalf of such owner) to comply with section 2, and for such other relief as the court may deem appropriate to carry out this Act. (b) Rulemaking authority The Bureau of Consumer Financial Protection shall have the power to make such rules as may be necessary or appropriate to carry out this Act. 5. Definitions As used in this Act: (a) Dwelling; home The terms dwelling home dwelling 15 U.S.C. 1602 (b) Foreclosed Home The term foreclosed home (1) by reason of the acceptance by such owner (or by a servicer acting on behalf of such owner) of a deed in lieu of foreclosure on a mortgage of that dwelling; or (2) by reason of foreclosure on a mortgage of that dwelling by such owner (or by a servicer acting on behalf of such owner). (c) Home in foreclosure The term home in foreclosure (1) whose owner is in imminent default on a loan secured by a mortgage of such dwelling; (2) whose owner has defaulted on a loan secured by a mortgage of such dwelling; or (3) which is the subject of a foreclosure proceeding. (d) Imminent default The term imminent default (1) is current, or delinquent by less than 30 days, on the obligation under such loan; and (2) is experiencing a significant reduction in income or other hardship that will severely limit his or her ability to make the next required payment on such loan. (e) Mortgage The term mortgage (f) Mortgage owner The term mortgage owner (1) the mortgagee of such dwelling; (2) the obligee of a loan secured by a mortgage of such dwelling; or (3) the servicer of a loan secured by a mortgage of such dwelling. (g) Qualified offer (1) In general The term qualified offer (A) half the assessed value of a home for the purposes of State or local taxation; or (B) half the value of a home as established by a private appraisal. (2) No appraisal or assessment If a home that is the subject of an offer to buy has not been assessed for tax purposes or by a private appraisal, such offer shall be deemed to be a qualified offer if it includes an offer to pay at least half the home’s value as estimated for accounting purposes by— (A) if it is a foreclosed home, its owner; or (B) if it is a home in foreclosure, its mortgage owner. (h) Servicer The term servicer 12 U.S.C. 2605(i)(2) (i) Short sale The term short sale (1) involving the sale of a dwelling that is the subject of a mortgage securing a loan for less than the amount of the outstanding obligation under such loan; and (2) in which the mortgage owner of such dwelling— (A) accepts the proceeds of such sale in partial or complete satisfaction of such loan; and (B) releases the mortgage of such dwelling.

Summary: Vacant Homes Act of 2015 This bill provides the mortgage owner of a home in foreclosure who receives notice from the homeowner (or from the homeowner's designee) of a qualified offer to buy the home in a short sale 90 days after receiving the notice to respond to the homeowner and the person who made the offer. The same response time requirement shall apply to the owner of a foreclosed home (or a servicer acting on the owner's behalf) who receives a qualified offer to buy it. A response rejecting an offer shall be sufficient only if, among other things, it makes a counteroffer meeting specified criteria. Aggrieved homeowners or offerors may bring private civil actions for failure to receive a timely and adequate mandatory response. The Consumer Financial Protection Bureau may apply to the U.S. district court for the district in which a home in foreclosure or a foreclosed home is located for an order requiring either the mortgage owner of the home in foreclosure or the owner of the foreclosed home (or a servicer acting on the owner's behalf) to comply with the timely and adequate response requirements of this Act.