(2) clearly states that the eligible mortgagor 
has the right, notwithstanding foreclosure, to con-
tinue to occupy the foreclosed property in accord-
ance with this Act, and sets forth the terms of such 
occupancy under subsections (a) and (c); and 
(3) clearly identifies the first date, pursuant to 
this section and any other provisions of law and con-
tract, that such foreclosure may be commenced. 
(c) TERMS OF PERIODIC TENANCY.—Occupancy, by 
an eligible mortgagor, of a foreclosed property pursuant 
to subsection (a) shall be under a periodic month-to-month 
tenancy under which the owner of the property may termi-
nate the tenancy for material breach but shall have no 
authority, at will, to terminate the tenancy during the oc-
cupancy pursuant to subsection (a) if the mortgagor— 
(1) timely pays to the owner of the foreclosed 
property rent on a monthly basis in the amount of 
the fair market rent for the property determined in 
accordance with section 4; and 
(2) uses property as the principal residence of 
the mortgagor. 
SEC. 3. REQUIRED NOTICE. 
With respect to an eligible mortgage for which notice 
under section 2(b) has been provided, notice in accordance 
with this section is notice that— 
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(1) is made in writing; 
(2) is submitted, by a means under which the 
act of delivery is recorded, to— 
(A) the court having jurisdiction and venue 
to conduct the covered foreclosure proceeding 
for the eligible mortgage or, in the case of non-
judicial foreclosure, the court in which an ac-
tion is brought pursuant to section 5; and 
(B) the foreclosing creditor; and 
(3) states that the eligible mortgagor is exer-
cising the authority under section 2(a) to continue 
to occupy the foreclosed property. 
SEC. 4. DETERMINATION OF FAIR MARKET RENT. 
(a) INITIAL DETERMINATION.—For purposes of this 
Act, the fair market rent for a foreclosed property involved 
in a covered foreclosure proceeding shall be the amount 
that is determined by an independent appraiser who is li-
censed or certified, as applicable, to conduct appraisals in 
the jurisdiction in which the property is located, who shall 
be appointed for such purpose by the court conducting 
such proceeding or hearing an action pursuant to section 
5. 
(b) PERIODIC ADJUSTMENTS.—The fair market rent 
determined under subsection (a) for a foreclosed property 
shall be adjusted annually to reflect changes in the owners’ 
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equivalent rent of primary residence component, for the 
appropriate city, region, or class of city, as available, of 
the Consumer Price Index for All Urban Consumers of 
the Bureau of Labor Statistics of the Department of 
Labor. 
(c) REDETERMINATION.—If the owner of a foreclosed 
property or the eligible mortgagor under the eligible mort-
gage requests the court described in subsection (a) to re-
determine the fair market rent for a foreclosed property 
determined pursuant to this section (as such amount may 
have been adjusted pursuant to subsection (b)) and agrees 
to pay any costs of such redetermination (including costs 
of the appraisal involved), the court shall provide for rede-
termination of the fair market rent for the foreclosed 
property in the manner provided under subsection (a), ex-
cept that no such redetermination shall be made pursuant 
to a request under this subsection made before the expira-
tion of the 12-month period beginning upon the most re-
cent redetermination conducted at the request of the same 
party. 
SEC. 5. NONJUDICIAL FORECLOSURE PROCEEDINGS. 
In the case of any covered foreclosure proceeding that 
is not conducted or administered by a court, the eligible 
mortgagor may bring an action in an appropriate court 
of the State in which the foreclosed property is located 
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for a determination of fair market rent for the foreclosed 
property for purposes of this Act, by filing notice in ac-
cordance with section 3 with such court and otherwise 
complying with the rules of such court. 
SEC. 6. NO BAR TO FORECLOSURE. 
This Act may not be construed to delay, or otherwise 
modify, affect, or alter any right of a creditor under an 
eligible mortgage to foreclose on the mortgage and to sell 
the foreclosed property in connection with such fore-
closure, except that the right of any owner of the property 
to possession of the property shall be subject to the lease-
hold interest established pursuant to section 2(c). 
SEC. 7. RIGHT TO REINSTATEMENT. 
This Act may not be construed to affect any right 
of any eligible mortgagor to reinstatement of an eligible 
mortgage, including any right established under contract 
or State law. 
SEC. 8. JURISDICTION OF FEDERAL COURTS. 
At the option of the eligible mortgagor, a proceeding 
under section 4 or 5 shall be removed to the appropriate 
district court of the United States in accordance with sec-
tion 1441 of title 28, United States Code. 
SEC. 9. EFFECT ON STATE LAW. 
(a) FORECLOSURE LAWS.—This Act does not annul, 
alter, affect, or exempt any person subject to the provi-
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