the ‘‘Program’’), which shall permit an eligible mort-
gagor to— 
(A) enter into a deed in lieu of foreclosure 
agreement; 
(B) continue to occupy and lease the prop-
erty that is the subject of such agreement for 
a 1-year period that begins on the date of such 
agreement; and 
(C) have a right of first refusal to pur-
chase such property after the end of the 1-year 
lease period, if the owner of the property in-
tends to sell the property at that time. 
(2) EXCEPTION FOR SMALL SERVICERS.—The 
Program requirement under paragraph (1) shall not 
apply to a small servicer, as such term is defined by 
the Secretary of Housing and Urban Development. 
(b) NOTICE REQUIREMENT.—Servicers shall provide 
each eligible mortgagor with information about the Pro-
gram and how to apply to participate in the Program. 
(c) LEASE TERMS.—A lease entered into by an eligi-
ble mortgagor under the Program shall— 
(1) carry a monthly rent amount equal to the 
fair market rent for such property, as determined by 
an independent private appraiser hired by and paid 
by the servicer; and 
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(2) contain all typical lease provisions for simi-
lar rental property. 
(d) APPLICATION PROCESS.— 
(1) IN GENERAL.—An eligible mortgagor may 
apply for the Program at any time. 
(2) EFFECT OF FORECLOSURE SALE.—If there 
is a foreclosure sale pending with respect to the 
property— 
(A) the eligible mortgagor may only apply 
for the Program before the date that is 7 days 
before the date of such foreclosure sale; and 
(B) once the eligible mortgagor applies for 
the Program, the foreclosure sale shall be halt-
ed until after the eligible mortgagor’s Program 
application has been evaluated. 
(3) CONTENTS OF APPLICATION.— 
(A) IN
GENERAL.—In applying for the 
Program, an eligible mortgagor shall provide 
the servicer with proof of the following informa-
tion: 
(i) The eligible mortgagor is subject 
to a financial hardship that makes the eli-
gible mortgagor unable to continue making 
timely payments on the eligible mortgage 
loan. 
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(ii) The eligible mortgagor is eligible 
to pay the monthly rent amount described 
under subsection (c)(1) and such amount 
is no more than 31 percent of the eligible 
mortgagor’s monthly income. 
(iii) The eligible mortgagor currently 
lives in the property and intends to con-
tinue doing so during the 1-year lease 
term. 
(B) ABILITY TO PAY HIGHER PERCENTAGE 
OF
INCOME
IN
RENT.—Notwithstanding sub-
paragraph (A)(ii), if an eligible mortgagor be-
lieves they are able pay the monthly rent 
amount despite such amount exceeding 31 per-
cent of the eligible mortgagor’s monthly income, 
the eligible mortgagor may request that the De-
partment of Housing and Urban Development 
review their information, along with any con-
tributing factors the eligible mortgagor may 
have (such as a low debt burden) and, if the 
Department notifies the eligible mortgagor that 
the Department agrees that the eligible mort-
gagor is able to pay a monthly rent amount 
that is equal to a percentage of their monthly 
income that is higher than 31 percent, such 
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