113 HR 4334 IH: Foreclosure Fairness Act of 2014 U.S. House of Representatives 2014-03-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 113th CONGRESS 2d Session H. R. 4334 IN THE HOUSE OF REPRESENTATIVES March 27, 2014 Ms. Michelle Lujan Grisham of New Mexico (for herself and Mr. Cartwright) 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.

1.

Short title

This Act may be cited as the Foreclosure Fairness Act of 2014.

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 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.

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.