Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that creates the Homeowner and Homebuyer Protection Act.

Highlights:

-Prohibits a person or entity other than the transferor from engaging in, promising to engage in, arranging, offering, promoting, soliciting, assisting with, or carrying out a foreclosure rescue transaction for financial gain or with the expectation of financial gain, unless prior to or at the time of transfer, the transferee pays the transferor at least 50 percent of the fair market value of the property, as determined by a licensed appraiser (Sec. 2). -Specifies that in order to effectuate a foreclosure rescue transaction, there must be a contract in writing, signed and acknowledged by all parties to it, and containing all the terms to which the parties have agreed (Sec. 2). -Authorizes the purchaser to exercise the right to cancel the option contract and contract for deed until midnight of the 3rd business day following execution of the option contract or delivery of a copy of the option contract with the required minimum disclosures, or whichever occurs last (Secs. 3 & 4). -Specifies that upon default and forfeiture after proper notice of default and intent to forfeit and failure of the purchaser to substantially "cure" the default, the purchaser's equitable right of redemption shall be extinguished by (Secs. 3 & 4):

-A mutual termination executed by the parties and recorded in the Office of the Register of Deeds of the county in which the property is located; or -A final judgment or court order entered by a court of competent jurisdiction that terminates the purchaser's rights to the property and extinguishes the equity of redemption where a certified copy of the order shall be recorded in the Office of the Register of Deeds of the county in which the property is located.

-Specifies that a purchaser's right to exercise an option to purchase property under an option contract or under a contract for deed cannot be forfeited unless a breach has occurred in 1 or more of the purchaser's express obligations under the option contract; the option contract provides that as a result of such breach the seller is entitled to forfeit the contract (Secs. 3 & 4). -Requires the seller to provide the purchaser with a statement of account at least once every 12-month period for the term of a contract for deed, which shall include, the following (Sec. 4):

-The amount paid; -Remaining amount owed; -Number of payments remaining; -Amounts paid to taxing authorities; and -Amounts paid to insure the property on the purchaser's behalf, if the property has been damaged, and if the property is encumbered by a lien or mortgage.

-Specifies that if the property being sold is burdened by 1 or more deeds of trust, mortgages, or other obligation which constitutes a lien on the property, then the seller must notify the purchaser in a separate written disclosure, provided at or before the execution of the contract (Sec. 4). -Prohibits sellers from charging a late payment fee under a contract for deed in excess of 4 percent of the amount of the payment past due and may only do so for payments that are more than 15 days past due (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that creates the Homeowner and Homebuyer Protection Act.

Highlights:

-Prohibits a person or entity other than the transferor from engaging in, promising to engage in, arranging, offering, promoting, soliciting, assisting with, or carrying out a foreclosure rescue transaction for financial gain or with the expectation of financial gain, unless prior to or at the time of transfer, the transferee pays the transferor at least 50 percent of the fair market value of the property, as determined by a licensed appraiser (Sec. 2). -Specifies that in order to effectuate a foreclosure rescue transaction, there must be a contract in writing, signed and acknowledged by all parties to it, and containing all the terms to which the parties have agreed (Sec. 2). -Authorizes the purchaser to exercise the right to cancel the option contract and contract for deed until midnight of the 3rd business day following execution of the option contract or delivery of a copy of the option contract with the required minimum disclosures, or whichever occurs last (Secs. 3 & 4). -Specifies that upon default and forfeiture after proper notice of default and intent to forfeit and failure of the purchaser to substantially "cure" the default, the purchaser's equitable right of redemption shall be extinguished by (Secs. 3 & 4):

-A mutual termination executed by the parties and recorded in the Office of the Register of Deeds of the county in which the property is located; or -A final judgment or court order entered by a court of competent jurisdiction that terminates the purchaser's rights to the property and extinguishes the equity of redemption where a certified copy of the order shall be recorded in the Office of the Register of Deeds of the county in which the property is located.

-Specifies that a purchaser's right to exercise an option to purchase property under an option contract or under a contract for deed cannot be forfeited unless a breach has occurred in 1 or more of the purchaser's express obligations under the option contract; the option contract provides that as a result of such breach the seller is entitled to forfeit the contract (Secs. 3 & 4). -Requires the seller to provide the purchaser with a statement of account at least once every 12-month period for the term of a contract for deed, which shall include, the following (Sec. 4):

-The amount paid; -Remaining amount owed; -Number of payments remaining; -Amounts paid to taxing authorities; and -Amounts paid to insure the property on the purchaser's behalf, if the property has been damaged, and if the property is encumbered by a lien or mortgage.

-Specifies that if the property being sold is burdened by 1 or more deeds of trust, mortgages, or other obligation which constitutes a lien on the property, then the seller must notify the purchaser in a separate written disclosure, provided at or before the execution of the contract (Sec. 4). -Prohibits sellers from charging a late payment fee under a contract for deed in excess of 4 percent of the amount of the payment past due and may only do so for payments that are more than 15 days past due (Sec. 4).

Full Bill Text