§3709 Presale Reinstatement

Summary

A foreclosure commissioner must stop the foreclosure and cancel the sale only in certain cases, except as limited by sections 3707(b) and 3710(c). The sale can be stopped if one of three things happens: the Secretary tells the commissioner to stop before or at the sale; the borrower asks at least three days before the sale and the commissioner finds the defaults did not exist when the notice was served; or the borrower fixes the problem—if it is a money default, the borrower pays to the commissioner the full principal and interest that would be due if payments had not been accelerated before the public auction is completed, or if it is a nonmoney default, the commissioner finds it cured and the borrower pays all amounts due under the mortgage (excluding extra amounts that would have been due only if payments had been accelerated), any secured expenses, and foreclosure costs covered by section 3711. The Secretary may refuse to cancel a sale under this rule if the current owner previously caused a foreclosure to be canceled by curing a default. Before withdrawing the property under the second or third reason above, the commissioner must give the Secretary a reasonable chance to show why the property should not be withdrawn. If a foreclosure is canceled, the mortgage continues as if acceleration had never occurred. A new foreclosure can later be started under this chapter.