§3765 — Title 12 Banks and Banking | U.S. Code

Summary

A foreclosure sale done the right way to a good-faith buyer stops other people from making claims on that property. It stops claims by four kinds of people: (1) anyone who was mailed the foreclosure notice and their heirs or legal representatives; (2) anyone with a lower-priority interest who actually knew about the sale; (3) anyone whose transfer, mortgage, or judgment was not properly recorded or filed before the foreclosure notice was first published under section 3758(3), and their heirs or representatives; and (4) anyone who got a statutory lien after the mortgage was recorded that attaches to the title of someone in the groups above.

Title 12, §3765

Banks and Banking — Source: USLM XML via OLRC

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)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)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)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)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

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