12 U.S.C. § 3761: Foreclosure costs

Summary

When a foreclosed property is sold, the sale money must first pay certain costs. These are necessary advertising and mailing for required notices (under sections 3758 and 3760); mileage for posting notices and for the foreclosure commissioner or auctioneer to attend the sale, measured by the most reasonable road distance (under 28 U.S.C. 1821); reasonable title and lien search costs; fees to record documents; and a commission for the foreclosure commissioner if they are not a federal employee and only if the Secretary allows it.

Title 12, §3761

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The following foreclosure costs shall be paid from the sale proceeds before satisfaction of any other claim to such sale proceeds:

(1)Advertising and postage

Necessary advertising costs and postage incurred in giving notice pursuant to section 3758 and 3760 of this title.

(2)Mileage

Mileage (determined by the most reasonable road distance) for posting notices and for the foreclosure commissioner’s or auctioneer’s attendance at the sale, as provided in section 1821 of title 28.

(3)Title and lien search

Reasonable and necessary costs incurred in connection with any search of title and lien records.

(4)Recordation fees

Costs incurred to record documents.

(5)Commission

A commission for the foreclosure commissioner (if the foreclosure commissioner is not an employee of the United States) for the conduct of the foreclosure, to the extent such a commission is authorized by the Secretary.

Editorial Notes

Codification Section is based on section 812 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.

§3761 Foreclosure Costs

Summary

Title 12, §3761

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata