Section 1 Short title
This Act may be cited as the “Foreclosure Fairness Act of 2014”.
Foreclosure Fairness Act of 2014
A BILL
To allow homeowners facing foreclosure to avoid deficiency judgments, and for other purposes.
Sec. 2 Deficiency judgments
In general— Beginning on the date of enactment of this Act, in the case of any federally related mortgage loan made after that date, a court may not enter deficiency judgment pertaining to that loan after the date of any foreclosure sale of the mortgaged property.
Rule of construction— Nothing in this Act shall be construed to preempt any more restrictive State or local law pertaining to deficiency judgments.
Sec. 3 Definitions
In this Act:
Deficiency judgment— The term “deficiency judgment” means any order by a court entered after a sale of a property subject to a federally related mortgage that has been foreclosed on, requiring the payment by the mortgagor of an amount equal to any balance remaining on the mortgage loan after the foreclosure sale.
Federally related mortgage loan— The term “federally related mortgage loan” has the meaning given such term under section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).
Mortgaged property— The term “mortgaged property” means, with respect to a federally related mortgage loan, the residential real property that is subject to the lien securing such mortgage loan.