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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Vacant Homes Act 
of 2015’’. 
SEC. 2. PROMPT RESPONSE REQUIRED. 
(a) BEFORE FORECLOSURE.— 
(1) 90 DAYS PROVIDED TO RESPOND.—With re-
spect to a home in foreclosure, the mortgage owner 
of such home who receives notice from the owner of 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
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 no-
tice, 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 des-
ignee) to such mortgage owner does not constitute 
‘‘notice’’ under paragraph (1) unless such owner cer-
tifies in such notice that he or she is in imminent 
default on such loan. 
(3) CONTENTS OF RESPONSE.—A response de-
scribed under paragraph (1) shall— 
(A) state that such mortgage owner ac-
cepts 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 de-
scribed under paragraph (1) which states that such 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
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 
dem-
onstrating 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 encum-
bered 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 be-
tween the mortgage owner and another person 
prohibits the mortgage owner from approving 
the offer. 
(b) AFTER FORECLOSURE.— 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
(1) 90 DAYS PROVIDED TO RESPOND.—With re-
spect to a foreclosed home, the owner of such home 
(or a servicer acting on behalf of the owner) who re-
ceives a qualified offer to buy such home shall, no 
later than 90 days after receipt of such offer, pro-
vide a response to the person who made such offer. 
(2) CONTENTS OF RESPONSE.—A response de-
scribed under paragraph (1) shall— 
(A) state that such owner or servicer ac-
cepts the offer; or 
(B) state that such owner or servicer re-
jects the offer and adequately provide a reason 
for such rejection. 
(3) SUFFICIENT RESPONSES.—A response de-
scribed 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 
dem-
onstrating a reasonable expectation that, 
within the 1-year period following the 90- 
day period under subsection (a), the 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
home’s fair market value will likely be 
equal or greater than such alternative 
price; or 
(B) proof that the home’s title is encum-
bered such that the transfer of title proposed by 
the offer is prohibited. 
SEC. 3. PRIVATE RIGHTS OF ACTION. 
(a) FOR HOMEOWNERS.—A homeowner who has pro-
vided 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 fore-
closed 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. 
VerDate Sep 11 2014 
04:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
SEC. 4. AUTHORITY GRANTED TO THE BUREAU OF CON-
SUMER 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 fore-
closure 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 Con-
sumer Financial Protection shall have the power to make 
such rules as may be necessary or appropriate to carry 
out this Act. 
SEC. 5. DEFINITIONS. 
As used in this Act: 
(a) DWELLING; HOME.—The terms ‘‘dwelling’’ and 
‘‘home’’ have the meaning given the term ‘‘dwelling’’ 
under section 103 of the Truth in Lending Act (15 U.S.C. 
1602). 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
(b) FORECLOSED
HOME.—The term ‘‘foreclosed 
home’’ means a dwelling whose owner obtained such dwell-
ing— 
(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’’ means a dwelling— 
(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 se-
cured by a mortgage of such dwelling; or 
(3) which is the subject of a foreclosure pro-
ceeding. 
(d) IMMINENT DEFAULT.—The term ‘‘imminent de-
fault’’ with respect to a loan obligation means a situation 
in which the obligor under such loan— 
(1) is current, or delinquent by less than 30 
days, on the obligation under such loan; and 
(2) is experiencing a significant reduction in in-
come or other hardship that will severely limit his or 
VerDate Sep 11 2014 
03:52 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
her ability to make the next required payment on 
such loan. 
(e) MORTGAGE.—The term ‘‘mortgage’’ includes a 
deed of trust or other security interest in real property. 
(f) MORTGAGE
OWNER.—The term ‘‘mortgage 
owner’’ with respect to a dwelling means— 
(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’’ 
means an offer to buy a home for at least the lowest 
of— 
(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— 
VerDate Sep 11 2014 
03:04 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS
(A) if it is a foreclosed home, its owner; or 
(B) if it is a home in foreclosure, its mort-
gage owner. 
(h) SERVICER.—The term ‘‘servicer’’ has the mean-
ing given such term under section 6(i)(2) of the Real Es-
tate Settlement Procedures Act of 1974 (12 U.S.C. 
2605(i)(2)), and includes a person who was a servicer of 
a loan secured by a dwelling before that dwelling became 
a foreclosed home. 
(i) SHORT SALE.—The term ‘‘short sale’’ means a 
transaction— 
(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 dwell-
ing— 
(A) accepts the proceeds of such sale in 
partial or complete satisfaction of such loan; 
and 
(B) releases the mortgage of such dwelling. 
Æ 
VerDate Sep 11 2014 
03:52 Jul 28, 2015
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H3203.IH
H3203
SSpencer on DSK4SPTVN1PROD with BILLS