§3705 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary can start foreclosure under this chapter on a multifamily mortgage when a loan term is broken and the mortgage allows foreclosure. The Secretary cannot start that foreclosure unless any earlier separate foreclosure action they began (in court or not) has been withdrawn, dismissed, or ended. While a foreclosure under this chapter is ongoing, the Secretary may not begin a different foreclosure on the same mortgage. The Secretary may still use other remedies, like getting a money judgment, appointing a receiver, taking mortgagee-in-possession status, enforcing an assignment of rents, or transferring to a nonprofit under section 1701q or section 8013 of title 42.

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nonjudicial, separately instituted by the Secretary to foreclose the mortgage other than under this chapter has been withdrawn, dismissed, or otherwise terminated.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

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.

§3705 Prerequisites to Foreclosure

Summary

Title 12, §3705

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata