[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4735 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4735

   To amend the Truth in Lending Act to protect tenants interests in 
                        foreclosure proceedings.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2007

 Mr. Ellison introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Truth in Lending Act to protect tenants interests in 
                        foreclosure proceedings.

    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 ``Tenant Protection in Foreclosure Act 
of 2007''.

SEC. 2. EFFECT OF FORECLOSURE ON PREEXISTING LEASE.

    Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended 
by adding at the end the following new subsection:
    ``(e) Effect of Foreclosure on Preexisting Lease.--
            ``(1) In general.--In the case of any foreclosure on any 
        dwelling or residential real property securing an extension of 
        credit made under a contract entered into after the date of the 
        enactment of the Tenant Protection in Foreclosure Act of 2007, 
        any successor in interest in such property pursuant to the 
        foreclosure shall assume such interest subject to--
                    ``(A) the provision, by the successor in interest, 
                of a notice to vacate to any bona fide tenant at least 
                90 days before the effective date of the notice to 
                vacate; and
                    ``(B) the rights of any bona fide tenant, as of the 
                date of such notice of foreclosure--
                            ``(i) under any bona fide lease entered 
                        into before the notice of foreclosure to occupy 
                        the premises until the end of the remaining 
                        term of the lease or the end of the 6-month 
                        period beginning on the date of the notice of 
                        foreclosure, whichever occurs first, subject to 
                        the receipt by the tenant of the 90-day notice 
                        under subparagraph (A); or
                            ``(ii) without a lease or with a lease 
                        terminable at will under State law, subject to 
                        the receipt by the tenant of the 90-day notice 
                        under subparagraph (A).
            ``(2) Bona fide lease or tenancy.--For purposes of this 
        section, a lease or tenancy shall be considered bona fide only 
        if--
                    ``(A) the mortgagor under the contract is not the 
                tenant;
                    ``(B) the lease or tenancy was the result of an 
                arms-length transaction; or
                    ``(C) the lease or tenancy requires the receipt of 
                rent that is not substantially less than fair market 
                rent for the property.''.
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