12 U.S.C. § 3768: Deficiency judgment

Summary

If the home sells for less than what is still owed after subtracting the payments allowed under section 3762, the Secretary can send the case to the Attorney General to sue the borrower(s) for the shortfall, unless the mortgage says that suit is not allowed. The United States can recover any amount allowed under 28 U.S.C. 3011 and the lawsuit costs. Any such suit must start within 6 years after the last sale of the property.

Title 12, §3768

Banks and Banking, Source: USLM XML via OLRC

(a)In general

(1)Referral to Attorney General

If after deducting the payments provided for in section 3762 of this title, the price at which the security property is sold at a foreclosure sale is less than the unpaid balance of the debt secured by the security property, resulting in a deficiency, the Secretary may refer the matter to the Attorney General who may commence an action or actions against any or all debtors to recover the deficiency, unless such an action is specifically prohibited by the mortgage.

(2)Other recoveries

In any action instituted pursuant to this section the United States may recover—

(A)any amount authorized by section 3011 of title 28; and

(B)the costs of the action.

(b)Limitation

Any action commenced to recover a deficiency under this section must be brought not later than 6 years after the date of the last sale of the security property.

Editorial Notes

Codification Section is based on section 819 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.

§3768 Deficiency Judgment

Summary

Title 12, §3768

Notes & Related Subsidiaries

Editorial Notes

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