§ 3707. — Commencement of foreclosure; powers and duties of foreclosure commissioner or substitute.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3707]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3707. Commencement of foreclosure; powers and duties of
foreclosure commissioner or substitute
(a) If the Secretary as holder of a multifamily mortgage determines
that the prerequisites to foreclosure set forth in section 3705 of this
title are satisfied, the Secretary may request the foreclosure
commissioner to commence foreclosure of the mortgage. Upon such request,
the foreclosure commissioner shall commence foreclosure of the mortgage,
by commencing service of a notice of default and foreclosure sale in
accordance with section 3708 of this title.
(b) Subsequent to commencement of a foreclosure under this chapter,
the Secretary may designate a substitute foreclosure commissioner at any
time up to forty-eight hours prior to the time of foreclosure sale, and
the foreclosure shall continue without prejudice, unless the substitute
commissioner, in his or her sole discretion, finds that continuation of
the foreclosure sale will unfairly affect the interests of the
mortgagor. In the event that the substitute commissioner makes such a
finding, the substitute commissioner shall cancel the foreclosure sale,
or adjourn such sale in the manner provided in section 3710(c) of this
title. Upon designation of a substitute foreclosure commissioner, a copy
of the written notice of such designation referred to in section 3704 of
this title shall be served upon the persons set forth in section 3708(1)
of this title (1) by mail as provided in such section 3708 of this title
(except that the minimum time periods between mailing and the date of
foreclosure sale prescribed in such section shall not apply to notice by
mail pursuant to this subsection), or (2) in any other manner, which in
the substitute commissioner's sole discretion, is conducive to achieving
timely notice of such substitution. In the event a substitute
foreclosure commissioner is designated less than forty-eight hours prior
to the time of the foreclosure sale, the pending foreclosure shall be
terminated and a new foreclosure shall be commenced by commencing
service of a new notice of default and foreclosure sale.
(Pub. L. 97-35, title III, Sec. 368, Aug. 13, 1981, 95 Stat. 425.)
Section Referred to in Other Sections
This section is referred to in sections 3704, 3705, 3708, 3709 of
this title.
