§1452c — Title 42 The Public Health and Welfare | U.S. Code

Summary

When HUD or its foreclosure agent forecloses on a single-family mortgage that covers a loan under section 1452b, the person who buys the house at the foreclosure sale gets the title and the right to live in or control the property. That ownership is still subject to any older loans or liens that come before HUD’s interest. If the property is vacant and abandoned, the borrower or anyone else has no right to “redeem” the property or to get possession after the sale, even if state law says otherwise. The proper state official or trustee must sign and deliver a deed or similar paper to the buyer without worrying about any redemption claim. Papers must also say in the court case, sale notice, deed, or an attached affidavit that the sale follows this rule and that no right of redemption exists. Definitions: “mortgage” — any document that creates a security interest in property (for example, a deed of trust, mortgage, security agreement, or similar interest, including leaseholds or life estates). “single family mortgage” — a mortgage on a 1- to 4-family residence.

Title 42, §1452c

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Whenever with respect to a single family mortgage securing a loan under section 1452b 11 See References in Text note below. of this title, the Secretary of Housing and Urban Development or its foreclosure agent forecloses in any Federal or State court or pursuant to a power of sale in a mortgage, the purchaser at the foreclosure sale shall be entitled to receive a conveyance of title to, and possession of, the property, subject to any interests senior to the interests of the Secretary. With respect to properties that are vacant and abandoned, notwithstanding any State law to the contrary, there shall be no right of redemption (including all instances any right to possession based upon any right of redemption) in the mortgagor or any other person subsequent to the foreclosure sale in connection with such single family mortgage. The appropriate State official or the trustee, as the case may be, shall execute and deliver a deed or other appropriate instrument conveying title to the purchaser at the foreclosure sale, consistent with applicable procedures in the jurisdiction and without regard to any such right of redemption.

(b)Whenever with respect to a single family mortgage on a property that also has a single family mortgage securing a loan under section 1452b 1 of this title, a mortgagee forecloses in any Federal or State court or pursuant to a power of sale in a mortgage, the Secretary of Housing and Urban Development, if the Secretary is purchaser at the foreclosure sale, shall be entitled to receive a conveyance of title to, and possession of, the property, subject to the interests senior to the interests of the mortgagee. Notwithstanding any State law to the contrary, there shall be no right of redemption (including in all instances any right to possession based upon any right of redemption) if the mortgagor or any other person subsequent to the foreclosure sale to the Secretary in connection with a property that secured a single family mortgage for a loan under section 1452b 1 of this title. The appropriate State official or the trustee, as the case may be, shall execute and deliver a deed or other appropriate instrument conveying title to the Secretary, who is the purchaser at the foreclosure sale, consistent with applicable procedures in the jurisdiction and without regard to any such right of redemption.

(c)The following actions shall be taken in order to verify title in the purchaser at the foreclosure sale:

(1)In the case of a judicial foreclosure in any Federal or State court, there shall be included in the petition and in the judgment of foreclosure a statement that the foreclosure is in accordance with this subsection and that there is no right of redemption in the mortgagor or any other person.

(2)In the case of a foreclosure pursuant to a power of sale provision in the mortgage, the statement required in paragraph (1) shall be included in the advertisement of the sale and either in the recitals of the deed or other appropriate instrument conveying title to the purchaser at the foreclosure sale or in an affidavit or addendum to the deed.

(d)For purposes of this section:

(1)The term “mortgage” means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal, or mixed, or any interest in property, including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien, for the purpose of securing the payment of money or the performance of an obligation.

(2)The term “single family mortgage” means a mortgage that covers property that includes a 1- to 4-family residence.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1452b of this title, referred to in subsecs. (a) and (b), was repealed by Pub. L. 101–625, title II, § 289(b)(1), Nov. 28, 1990, 104 Stat. 4128. Codification Section was enacted as part of the Department of Housing and Urban Development Reform Act of 1989, and not as part of the Housing Act of 1949 which comprises this chapter.

§1452c Nullification of Right of Redemption of Single Family Mortgagors Under Rehabilitation Loan Program

Summary

Title 42, §1452c

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata