§3756 — Title 12 Banks and Banking | U.S. Code

Summary

If the government holder of a single‑family mortgage finds the conditions to foreclose are met, it can ask the foreclosure agent to start foreclosure. The agent must begin by sending the borrower a notice that the loan is in default and that a sale will be held, following the required procedures. The government can pick a different foreclosure agent any time before the sale. The foreclosure keeps going unless the new agent decides the sale would unfairly hurt the borrower; then the agent must cancel or postpone it. When a new agent is named, written notice must be sent by mail or by any other way the new agent chooses to give timely notice. The usual minimum mailing time does not apply.

Title 12, §3756

Banks and Banking — Source: USLM XML via OLRC

(a)If the Secretary, as holder of a single family mortgage, determines that the prerequisites to foreclosure set forth in section 3755 of this title are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of a single family mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with section 3757 and 3758 of this title.

(b)After commencement of a foreclosure under this chapter, the Secretary may designate a substitute foreclosure commissioner at any time before the time of the foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in that commissioner’s sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. If the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in accordance with section 3760(c) of this title.

(c)Upon designation of a substitute foreclosure commissioner, a copy of the written notice of such designation described in section 3754 of this title shall be served—

(1)by mail, as provided in section 3758 of this title (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply); or

(2)in any other manner which, in the substitute commissioner’s sole discretion, is conducive to achieving timely notice of such substitution.

Editorial Notes

Codification Section is based on section 807 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.

§3756 Commencement of Foreclosure

Summary

Title 12, §3756

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata