§3768 — Title 12 Banks and Banking | U.S. Code

Summary

If a foreclosure sale brings in less money than what is still owed after subtracting payments under section 3762, the Secretary can send the case to the Attorney General. The Attorney General may sue some or all of the people who owe the debt to recover the shortfall, unless the mortgage specifically forbids such a suit. In that lawsuit, the United States can recover any amount allowed by section 3011 of title 28 and the costs of the case. Any lawsuit to collect the deficiency must start within 6 years after the date of the last sale of the property.

Title 12, §3768

Banks and Banking — Source: USLM XML via OLRC

(a)(1)If after deducting the payments provided for in section 3762 of this title, the price at which the security property is sold at a foreclosure sale is less than the unpaid balance of the debt secured by the security property, resulting in a deficiency, the Secretary may refer the matter to the Attorney General who may commence an action or actions against any or all debtors to recover the deficiency, unless such an action is specifically prohibited by the mortgage.

(2)In any action instituted pursuant to this section the United States may recover—

(A)any amount authorized by section 3011 of title 28; and

(B)the costs of the action.

(b)Any action commenced to recover a deficiency under this section must be brought not later than 6 years after the date of the last sale of the security property.

Editorial Notes

Codification Section is based on section 819 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.

§3768 Deficiency judgment

Summary

Title 12, §3768

Notes & Related Subsidiaries

Editorial Notes

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