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Title 12, Banks and BankingRelease 119-102

§3705 Prerequisites to Foreclosure

Title 12 › CHAPTER 38 — MULTIFAMILY MORTGAGE FORECLOSURE › § 3705

Last updated Aug 21, 2026|Official source

Summary

Secretary can start foreclosure under this chapter on a multifamily mortgage after a breach, as provided in section 3707, but only if any other separate foreclosure the Secretary began has been withdrawn, dismissed, or ended. No other separate foreclosure can be started while this chapter’s foreclosure is pending. The Secretary can also use other remedies—money judgment, appointing a receiver, taking possession, collecting rents, or transferring to a nonprofit under section 1701q or section 8013 of title 42—and may foreclose under this chapter while seeking those remedies.

Full Legal Text

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or nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this chapter has been withdrawn, dismissed, or otherwise terminated.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.

Legislative History

Notes & Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 3705

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102