§3759 Presale reinstatement

Summary

Unless two narrow exceptions in sections 3756(b) and 3760(c) apply, the person running a foreclosure must stop the sale and remove the property from foreclosure only in specific situations. The Secretary can order the stoppage before or at the sale. A borrower can ask at least 3 days before the sale and the foreclosure officer can find that the claimed defaults did not exist when the notice was served. For money defaults, the borrower can pay the full principal and interest that would have been due if the loan had not been accelerated before the auction ends. For nonmoney defaults, the borrower must cure the problem and, before the auction ends, pay all amounts due under the mortgage (not including extra amounts from acceleration), any secured expenditures, and the foreclosure costs allowed under section 3761. The Secretary can refuse a cancellation under the payment cure rule if the borrower has used this cure before to stop a foreclosure. Before the officer withdraws the property under the borrower-cure rules, the Secretary must have a fair chance to explain why it should not be withdrawn. If a foreclosure is canceled, the mortgage continues as if it had not been accelerated. Cancellation does not prevent starting another foreclosure later. The officer must file a notice of cancellation the same way the notice of default and sale is filed under section 3758.