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Title 12 — Banks and BankingRelease 119-73not60

§3755 Prerequisites to Foreclosure

Title 12 › Chapter 38A— SINGLE FAMILY MORTGAGE FORECLOSURE › § 3755

Last updated Apr 3, 2026|Official source

Summary

The Secretary may foreclose a mortgage when someone breaks a promise in the mortgage. The Secretary cannot start a foreclosure under this law if the Secretary already brought a separate foreclosure case (judicial or nonjudicial) on the same mortgage unless that earlier case is withdrawn, dismissed, or ended first. While a foreclosure under this law is happening, the Secretary must not begin another separate foreclosure. The Secretary may still use other legal tools — like suing for money, appointing a receiver, acting as mortgagee-in-possession, or enforcing an assignment of rents — and may foreclose under this law even while using or after getting those other remedies.

Full Legal Text

Title 12, §3755

Banks and Banking — Source: USLM XML via OLRC

(a)(1)The Secretary is authorized to foreclose a mortgage under this chapter upon the breach of a covenant or condition in the mortgage agreement.
(2)(A)No foreclosure may be commenced under this chapter unless any previously pending judicial or nonjudicial proceeding that has been separately instituted by the Secretary to foreclose the mortgage (other than under this chapter), has been withdrawn, dismissed, or otherwise terminated.
(B)No separately instituted foreclosure proceeding on a mortgage which is the subject of a foreclosure proceeding under this chapter shall be instituted by the Secretary during the pendency of foreclosure pursuant to this chapter.
(b)Nothing in this chapter shall preclude the Secretary from—
(1)enforcing any right, other than foreclosure, under applicable Federal or State law, including any right to obtain a monetary judgment; or
(2)foreclosing under this chapter if the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law, or under the mortgage agreement, including the appointment of a receiver, mortgagee-in-possession status, or relief under an assignment of rents.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section is based on section 806 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327.

Reference

Citations & Metadata

Citation

12 U.S.C. § 3755

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60