§3709 Presale Reinstatement

Summary

Except as provided in sections 3707(b) and 3710(c), the foreclosure commissioner must stop the foreclosure and cancel the sale only in certain cases. The commissioner must do this if the Secretary directs it before or at the time of sale; or if the borrower applies at least three days prior to the date of sale and the commissioner finds the defaults did not exist when the notice was served; or if the borrower cures the problem and, before the public auction is completed, pays required amounts: for a money default, the full principal and interest that would have been due without acceleration; for a nonmoney default, a finding that it is cured; plus all amounts due under the mortgage (excluding amounts that would come from acceleration), secured expenditures, and foreclosure costs allowed under section 3711. The Secretary may refuse cancellation under this last option if the current borrower or owner of record previously caused a foreclosure to be canceled by curing a default. Before stopping a sale under the borrower-based grounds above, the foreclosure commissioner must give the Secretary a reasonable chance to explain why the sale should not be stopped. If a foreclosure is canceled, the mortgage continues as if acceleration never happened, and a new foreclosure can later be started under this chapter.