§3705 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary may start foreclosure under this chapter on a multifamily mortgage when a mortgage rule is broken and foreclosure is allowed by the mortgage, as explained in section 3707. But the Secretary cannot begin this foreclosure if there is already a separate foreclosure case by the Secretary that is still pending; that earlier case must be withdrawn, dismissed, or ended first, and the Secretary may not start a separate foreclosure while a chapter foreclosure is underway. The chapter does not stop the Secretary from using other legal rights, like getting a money judgment under State law. The Secretary may also use or seek other remedies (for example, a court-appointed receiver, the lender running the property, collecting rents, or transferring the project to a nonprofit under section 1701q or section 8013 of title 42) and still foreclose under this chapter.

Title 12, §3705

Banks and Banking — Source: USLM XML via OLRC

Foreclosure by the Secretary under this chapter of a multifamily mortgage may be commenced, as provided in section 3707 of this title, upon the breach of a covenant or condition in the mortgage agreement for which foreclosure is authorized under the mortgage, except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this chapter has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the mortgage shall be instituted by the Secretary during the pendency of foreclosure pursuant to this chapter. Nothing in this chapter shall preclude the Secretary from enforcing any right, other than foreclosure, under applicable State law, including any right to obtain a monetary judgment. Nothing in this chapter shall preclude the Secretary from foreclosing under this chapter where the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law or under the mortgage agreement, including, but not limited to, the appointment of a receiver, mortgagee-in-possession status, relief under an assignment of rents, or transfer to a nonprofit entity pursuant to section 1701q of this title or section 8013 of title 42.

Editorial Notes

Amendments

1992—Pub. L. 102–550 substituted “status, relief under an assignment of rents, or transfer to a nonprofit entity pursuant to section 1701q of this title or section 8013 of title 42” for “status or relief under an assignment of rents” in last sentence.

§3705 Prerequisites to foreclosure

Summary

Title 12, §3705

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata