Section 1 Short title
This Act may be cited as the “Vacant Homes Act of 2015”.
Vacant Homes Act of 2015
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.
Sec. 2 Prompt response required
Before Foreclosure—
90 days provided to respond— With respect to a home in foreclosure, the mortgage owner of such home who receives notice from the owner of 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 notice, provide a response to—
such homeowner; and
the person who made such offer.
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 designee) to such mortgage owner does not constitute “notice” under paragraph (1) unless such owner certifies in such notice that he or she is in imminent default on such loan.
Contents of response— A response described under paragraph (1) shall—
state that such mortgage owner accepts the offer; or
state that such mortgage owner rejects the offer and adequately provide a reason for such rejection.
Sufficient responses— A response described under paragraph (1) which states that such mortgage owner rejects the offer adequately provides a reason for such rejection only if it provides—
a counteroffer stating—
an alternative price at which the mortgage owner would approve the offer; and
an economic analysis demonstrating 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;
proof that the home’s title is encumbered such that the transfer of title proposed by the offer is prohibited;
proof that another mortgage owner of the home prohibits its being the subject of a short sale; or
proof that an enforceable contract between the mortgage owner and another person prohibits the mortgage owner from approving the offer.
After foreclosure—
90 days provided to respond— With respect to a foreclosed home, the owner of such home (or a servicer acting on behalf of the owner) who receives a qualified offer to buy such home shall, no later than 90 days after receipt of such offer, provide a response to the person who made such offer.
Contents of response— A response described under paragraph (1) shall—
state that such owner or servicer accepts the offer; or
state that such owner or servicer rejects the offer and adequately provide a reason for such rejection.
Sufficient responses— A response described under paragraph (1) which states that such mortgage owner rejects the offer adequately provides a reason for such rejection only if it provides—
a counteroffer stating—
an alternative price at which the mortgage owner would approve the offer; and
an economic analysis demonstrating 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; or
proof that the home’s title is encumbered such that the transfer of title proposed by the offer is prohibited.
Sec. 3 Private rights of action
For homeowners— A homeowner who has provided 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.
For offerors— A person who has made a qualified offer to purchase a home in foreclosure or a foreclosed 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.
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.
Sec. 4 Authority granted to the Bureau of Consumer Financial Protection
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—
the mortgage owner of such home in foreclosure to comply with section 2, and for such other relief as the court may deem appropriate to carry out this Act; or
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.
Rulemaking authority— The Bureau of Consumer 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:
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).
Foreclosed Home— The term “foreclosed home” means a dwelling whose owner obtained such dwelling—
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
by reason of foreclosure on a mortgage of that dwelling by such owner (or by a servicer acting on behalf of such owner).
Home in foreclosure— The term “home in foreclosure” means a dwelling—
whose owner is in imminent default on a loan secured by a mortgage of such dwelling;
whose owner has defaulted on a loan secured by a mortgage of such dwelling; or
which is the subject of a foreclosure proceeding.
Imminent default— The term “imminent default” with respect to a loan obligation means a situation in which the obligor under such loan—
is current, or delinquent by less than 30 days, on the obligation under such loan; and
is experiencing a significant reduction in income or other hardship that will severely limit his or her ability to make the next required payment on such loan.
Mortgage— The term “mortgage” includes a deed of trust or other security interest in real property.
Mortgage owner— The term “mortgage owner” with respect to a dwelling means—
the mortgagee of such dwelling;
the obligee of a loan secured by a mortgage of such dwelling; or
the servicer of a loan secured by a mortgage of such dwelling.
Qualified offer—
In general— The term “qualified offer” means an offer to buy a home for at least the lowest of—
half the assessed value of a home for the purposes of State or local taxation; or
half the value of a home as established by a private appraisal.
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—
if it is a foreclosed home, its owner; or
if it is a home in foreclosure, its mortgage owner.
Servicer— The term “servicer” has the meaning given such term under section 6(i)(2) of the Real Estate 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.
Short sale— The term “short sale” means a transaction—
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
in which the mortgage owner of such dwelling—
accepts the proceeds of such sale in partial or complete satisfaction of such loan; and
releases the mortgage of such dwelling.