§3755 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary can foreclose a mortgage under this chapter if the borrower breaks a term of the mortgage. Before starting that kind of foreclosure, any earlier separate foreclosure action the Secretary started (not under this chapter) must be withdrawn, dismissed, or ended. Also, while a foreclosure under this chapter is in progress, the Secretary cannot begin a different foreclosure on the same mortgage. The Secretary can also use other legal remedies besides foreclosure. That includes getting money judgments or using tools like appointing a receiver, taking control as mortgagee-in-possession, or seeking relief under an assignment of rents, and the Secretary may pursue those remedies together with foreclosure under this chapter.

Title 12, §3755

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(a)(1)The Secretary is authorized to foreclose a mortgage under this chapter upon the breach of a covenant or condition in the mortgage agreement.

(2)(A)No foreclosure may be commenced under this chapter unless any previously pending judicial or nonjudicial proceeding that has been separately instituted by the Secretary to foreclose the mortgage (other than under this chapter), has been withdrawn, dismissed, or otherwise terminated.

(B)No separately instituted foreclosure proceeding on a mortgage which is the subject of a foreclosure proceeding under this chapter shall be instituted by the Secretary during the pendency of foreclosure pursuant to this chapter.

(b)Nothing in this chapter shall preclude the Secretary from—

(1)enforcing any right, other than foreclosure, under applicable Federal or State law, including any right to obtain a monetary judgment; or

(2)foreclosing under this chapter if the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law, or under the mortgage agreement, including the appointment of a receiver, mortgagee-in-possession status, or relief under an assignment of rents.

Editorial Notes

Codification Section is based on section 806 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327.

§3755 Prerequisites to foreclosure

Summary

Title 12, §3755

Notes & Related Subsidiaries

Editorial Notes

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