§3707 Commencement of Foreclosure; Powers and Duties of Foreclosure Commissioner or Substitute

Summary

If the Secretary, who holds a multifamily mortgage, finds the conditions in section 3705 are met, the Secretary can ask the foreclosure commissioner to start foreclosure. The foreclosure commissioner must begin by serving a notice of default and a notice of foreclosure sale under section 3708. After foreclosure starts, the Secretary can name a substitute foreclosure commissioner up to 48 hours before the sale. The sale keeps going unless the substitute decides it would unfairly hurt the borrower; if so, the substitute must cancel or postpone the sale under section 3710(c). The substitute must give written notice of the change to the people listed in section 3708(1), either by mail (without the usual mail-timing rules) or by any other method the substitute chooses to get timely notice. If a substitute is named less than 48 hours before the sale, the pending foreclosure ends and a new foreclosure must start with a new notice of default and sale.