110 HR 4735 IH: Tenant Protection in Foreclosure Act of U.S. House of Representatives 2007-12-17 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 110th CONGRESS 1st Session H. R. 4735 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.

1.

Short title

This Act may be cited as the Tenant Protection in Foreclosure Act of 2007.

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. .