12 U.S.C. § 3765: Effect of sale

Summary

A sale done under this chapter to a good-faith buyer stops certain people from making claims on that property. People who lose their claims include anyone mailed the foreclosure notice and their heirs or assigns; anyone with a lower-priority claim who actually knew about the sale; anyone whose claim was not properly recorded or filed before the sale notice was first published, and their representatives; and anyone who got a statutory lien after the mortgage was recorded that attaches to the title of those people.

Title 12, §3765

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A sale, made and conducted as prescribed in this chapter to a bona fide purchaser, shall bar all claims upon, or with respect to, the property sold, for each of the following persons:

(1)Notice recipients

Any person to whom the notice of default and foreclosure sale was mailed as provided in this chapter, and the heir, devisee, executor, administrator, successor, or assignee claiming under any such person.

(2)Subordinate claimants with knowledge

Any person claiming any interest in the property subordinate to that of the mortgage, if such person had actual knowledge of the foreclosure sale.

(3)Nonrecorded claimants

Any person claiming any interest in the property, whose assignment, mortgage, or other conveyance was not duly recorded or filed in the proper place for recording or filing, or whose judgment or decree was not duly docketed or filed in the proper place for docketing or filing, before the date on which the notice of the foreclosure sale was first served by publication, as required by section 3758(3) of this title, and the executor, administrator, or assignee of such a person.

(4)Other persons

Any person claiming an interest in the property under a statutory lien or encumbrance created subsequent to the recording or filing of the mortgage being foreclosed, and attaching to the title or interest of any person designated in any of the foregoing paragraphs.

Editorial Notes

Codification Section is based on section 816 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.

§3765 Effect of Sale

Summary

Title 12, §3765

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata