Eligible bidders at foreclosure sales, eligible purchasers of foreclosed property, and providing a penalty. (FE)

1. The third-party bidder owns property against which property taxes have been levied that are more than 120 days delinquent.

2. The third-party bidder is directly or indirectly owned, managed, or controlled by a person that owns property against which property taxes have been levied that are more than 120 days delinquent.

3. The third-party bidder directly or indirectly owns, manages, or controls an entity that owns property against which property taxes have been levied that are more than 120 days delinquent.

4. An unsatisfied judgment related to a violation of a state or local building code with respect to property in this state has been rendered against a) the third-party bidder; b) a person that directly or indirectly owns, manages, or controls the third-party bidder; or c) an entity that is directly or indirectly owned, managed, or controlled by the third-party bidder.

5. The third-party bidder is bidding on behalf of or as part of an agreement with a person to which any of the conditions described above applies.

The bill also prohibits any assignment of a bid submitted at a foreclosure sale to a person that does not meet those minimum bidder qualifications.

Under the bill, a third-party bidder must file an affidavit with the clerk of court affirming that the third-party bidder meets the minimum bidder qualifications, and the court may not confirm the sale until that affidavit is filed. If the court determines that the affidavit contains a false representation, the court may choose not to confirm the sale and may order that the property be resold and the third-party bidder's deposit forfeited. If the court determines that the false representation was made knowingly, the court also may order the third-party bidder, the individual who signed the affidavit on behalf of the third-party bidder, or both to forfeit up to $1,000 and may bar the third-party bidder, the individual who signed the affidavit on behalf of the third-party bidder, or both from participating in any foreclosure sales in the county for a period of time not to exceed one year from the date on which the order is entered.