§3704 Foreclosure Commissioner; Designation, Duties, Etc.

Summary

Foreclosure commissioners can sell property without going to court under this chapter. When the Secretary holds a multifamily mortgage, the Secretary may pick a foreclosure commissioner and may replace that person at any time. The Secretary must sign a written notice with the commissioner’s name and address. The designation takes effect when signed. Except as section 3707(b) allows, a copy of the designation must be mailed with each notice of default and foreclosure sale sent under section 3708(1). If the commissioner is a person, they must live in the state where the property is. If it is an organization, it must be allowed to do business in that state. The commissioner must be responsible, financially sound, and able to run the foreclosure. More than one commissioner can be named. A person must be named by name unless they are a government official and can be named by title. The Secretary guarantees payment for any judgment against the commissioner for failing to do the job, bears the risk of the commissioner’s financial default, and, if the Secretary pays, gets the rights that payment satisfied.