[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2280 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2280

        To provide for fairness in the home foreclosure process.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 9, 1998

 Mr. Faircloth introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
        To provide for fairness in the home foreclosure process.

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

SECTION 1. SHORT TITLE.

    The Act may be cited as the ``Foreclosure Sale Fairness Act of 
1998''.

SEC. 2. DEFINITIONS.

    As used in this Act--
            (1) the term ``Commission'' means the Federal Trade 
        Commission; and
            (2) the term ``appropriate Federal banking agency'' has the 
        meaning given by section 3 of the Federal Deposit Insurance 
        Act.

SEC. 3. FORECLOSURE SALE PROCESS.

    Notwithstanding any other provision of law, in the case of a 
judicial or non-judicial foreclosure for a single family home, upon 
written request by a mortgagor, the sale of the property shall--
            (1) occur at a public sale by auction;
            (2) at a time and place convenient to the general public; 
        and
            (3) be conducted in a manner to maximize competitive 
        bidding and to obtain the highest possible sale price.

SEC. 4. EFFECTIVE DATE.

    This Act shall take effect 180 days after the date of enactment.

SEC. 5. REGULATIONS.

    (a) The Federal Trade Commission shall promulgate regulations to 
carry out the provisions of section 3 not later than 180 days after 
date of enactment.
    (b) In the case of federally insured institutions, the appropriate 
Federal banking agency shall promulgate regulations within 180 days of 
enactment.

SEC. 6. EXEMPTION.

    The Commission or the appropriate Federal banking agency shall by 
regulation exempt from this Act any class of foreclosures covered by 
this Act within any State if the Commission determines or the 
appropriate Federal banking agency determines that the laws of that 
State are substantially similar to those imposed by this Act.

SEC. 7. RELATION TO STATE LAW.

    This Act does not annul, alter or affect any other aspect of real 
estate foreclosures except to the extent that State laws are 
inconsistent with the provisions in section 3.
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