§3759 Presale Reinstatement

Summary

Stops a foreclosure and cancels the sale only in specific cases. Except as allowed by sections 3756(b) and 3760(c), the foreclosure commissioner must withdraw the property from foreclosure and cancel the sale if the Secretary orders it before or at the sale; or if the borrower shows, at least 3 days before the sale, that the alleged default did not exist when the notice was served; or if, for a money default, the borrower pays the full principal and interest that would have been due had payments not been accelerated, or for a nonmoney default the borrower cures it, and in either case the borrower pays before public auction is completed all amounts due under the mortgage (not including extra sums that would be due only if payments had been accelerated), any secured expenditures, and foreclosure costs payable from sale proceeds (see section 3761). The Secretary may refuse cancellation if the borrower has previously caused a foreclosure to be canceled by curing a default. Before withdrawing the property under the borrower’s showing or payment, the foreclosure commissioner must give the Secretary a reasonable chance to object. If a foreclosure is canceled, the mortgage stays in effect as if it had never been accelerated, cancellation does not stop a later foreclosure, and the commissioner must file a notice of cancellation where the notice of default and sale is filed (see section 3758).