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

Summary

If the Secretary who holds a multifamily mortgage finds that the required steps for foreclosure are met, the Secretary can ask the foreclosure commissioner to start the foreclosure. The foreclosure commissioner must begin by sending the formal notice of default and notice of the foreclosure sale as required. 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 be unfair to the borrower; then the substitute must cancel or postpone the sale. When a substitute is named, the substitute must promptly notify the people who get the sale notices, either by mail (without the usual waiting times) or by any other timely method. If a substitute is named less than 48 hours before the sale, the current foreclosure stops and a new foreclosure process must start with new notices.