I 
110TH CONGRESS 
2D SESSION 
H. R. 6116 
To allow homeowners of moderate-value homes who are subject to mortgage 
foreclosure proceedings to remain in their homes as renters. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 21, 2008 
Mr. GRIJALVA introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To allow homeowners of moderate-value homes who are sub-
ject to mortgage foreclosure proceedings to remain in 
their homes as renters. 
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 ‘‘Saving Family Homes 
Act of 2008’’. 
SEC. 2. RIGHT TO RENT HOME SUBJECT TO FORECLOSURE. 
(a) EXERCISE OF RIGHT.—If, at any time after no-
tice under subsection (b) for an eligible mortgage is pro-
vided to the eligible mortgagor and before the commence-
ment of the 7-day period that ends on the first date that 
VerDate Aug 31 2005 
01:08 May 24, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6116.IH
H6116
erowe on PRODPC61 with BILLS
the foreclosing creditor may first commence or execute 
such foreclosure pursuant to such notice, the eligible mort-
gagor under the eligible mortgage that is subject to such 
foreclosure provides notice in accordance with section 3, 
notwithstanding such foreclosure or any other interests in 
the property, the eligible mortgagor may, at the sole op-
tion of the eligible mortgagor, continue to occupy the fore-
closed property during the 20-year period that begins 
upon the commencement of such occupancy, subject to the 
requirements of subsection (c). 
(b) LIMITATION ON TIMING OF FORECLOSURE; NO-
TICE
OF DEFAULT
AND RIGHT TO RENT.—Notwith-
standing any other provision of law or any contract, a 
foreclosure of an eligible mortgage may not be commenced 
or executed before the expiration of the 28-day period be-
ginning upon the receipt, by the eligible mortgagor, of 
written notice provided by the foreclosing creditor for the 
mortgage that— 
(1) clearly states that— 
(A) the eligible mortgagor is in default on 
the mortgage; and 
(B) foreclosure on the mortgage may or 
will be commenced on account of such default; 
(2) clearly states that the eligible mortgagor 
has the right, notwithstanding foreclosure, to con-
VerDate Aug 31 2005 
01:08 May 24, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6116.IH
H6116
erowe on PRODPC61 with BILLS
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) identifies the first date, pursuant to this 
section and any other provisions of law and contract, 
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 subsection (b) has been provided, notice in accord-
ance with this section is notice that— 
(1) is made in writing; 
(2) is submitted to— 
VerDate Aug 31 2005 
01:08 May 24, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6116.IH
H6116
erowe on PRODPC61 with BILLS
(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’ 
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 
VerDate Aug 31 2005 
01:08 May 24, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6116.IH
H6116
erowe on PRODPC61 with BILLS