§ 3709. — Presale reinstatement.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3709]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3709. Presale reinstatement
(a) Grounds
Except as provided in sections 3707(b) and 3710(c) of this title,
the foreclosure commissioner shall withdraw the security property from
foreclosure and cancel the foreclosure sale only if--
(1) the Secretary so directs the commissioner prior to or at the
time of sale;
(2) the commissioner finds, upon application of the mortgagor at
least three days prior to the date of sale, that the default or
defaults upon which the foreclosure is based did not exist at the
time of service of the notice of default and foreclosure sale; or
(3)(A) in the case of a foreclosure involving a monetary
default, there is tendered to the foreclosure commissioner before
public auction is completed the entire amount of principal and
interest which would be due if payments under the mortgage had not
been accelerated; (B) in the case of a foreclosure involving a
nonmonetary default, the foreclosure commissioner, upon application
of the mortgagor before the date of foreclosure sale, finds that
such default is cured; and (C) there is tendered to the foreclosure
commissioner before public auction is completed all amounts due
under the mortgage agreement (excluding additional amounts which
would have been due if mortgage payments had been accelerated), all
amounts of expenditures secured by the mortgage and all costs of
foreclosure incurred for which payment from the proceeds of
foreclosure is provided in section 3711 of this title, except that
the Secretary shall have discretion to refuse to cancel a
foreclosure pursuant to this paragraph (3) if the current mortgagor
or owner of record has on one or more previous occasions caused a
foreclosure of the mortgage, commenced pursuant to this part or
otherwise, to be canceled by curing a default.
(b) Views of Secretary
Prior to withdrawing the security property from foreclosure in the
circumstances described in subsection (a)(2) or (a)(3) of this section,
the foreclosure commissioner shall afford the Secretary a reasonable
opportunity to demonstrate why the security property should not be so
withdrawn.
(c) Mortgage subsequent to reinstatement
In any case in which a foreclosure commenced under this chapter is
canceled, the mortgage shall continue in effect as though acceleration
had not occurred.
(d) Subsequent foreclosures
If the foreclosure commissioner cancels a foreclosure sale under
this chapter a new foreclosure may be subsequently commenced as provided
in this chapter.
(Pub. L. 97-35, title III, Sec. 369A, Aug. 13, 1981, 95 Stat. 427.)
Section Referred to in Other Sections
This section is referred to in section 3710 of this title.
