Foreclosure Fairness Act of 2017

Foreclosure Fairness Act of 2017

This bill prohibits a court, in the case of any federally related mortgage loan, from entering a deficiency judgment requiring the mortgagor to pay any remaining balance on the mortgage loan after a foreclosure sale of the mortgaged property.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3016 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3016

 To allow homeowners facing foreclosure to avoid deficiency judgments, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 22, 2017

Ms. Michelle Lujan Grisham of New Mexico introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To allow homeowners facing foreclosure to avoid deficiency judgments, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreclosure Fairness Act of 2017''.

SEC. 2. DEFICIENCY JUDGMENTS.

    (a) 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 a deficiency judgment pertaining to that loan after 
the date of any foreclosure sale of the mortgaged property.
    (b) 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:
            (1) 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.
            (2) 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).
            (3) 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.
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