§ 3759. — 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: 12USC3759]
TITLE 12--BANKS AND BANKING
CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
Sec. 3759. Presale reinstatement
(a) Withdrawal and cancellation
(1) In general
Except as provided in sections 3756(b) and 3760(c) of this
title, the foreclosure commissioner shall withdraw the security
property from foreclosure and cancel the foreclosure sale only if--
(A) the Secretary directs the foreclosure commissioner to do
so before or at the time of the sale;
(B) the foreclosure commissioner finds, upon application of
the mortgagor not less than 3 days before the date of the 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
(C)(i) 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;
(ii) 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
(iii) there is tendered to the foreclosure commissioner
before public auction is completed--
(I) all amounts due under the mortgage agreement
(excluding additional amounts which would have been due if
mortgage payments had been accelerated);
(II) all amounts of expenditures secured by the
mortgage; and
(III) all costs of foreclosure incurred for which
payment from the proceeds of foreclosure is provided in
section 3761 of this title.
(2) Discretionary noncancellation
The Secretary may refuse to cancel a foreclosure sale pursuant
to paragraph (1)(C) 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 chapter or otherwise, to be
canceled by curing a default.
(b) Opportunity of Secretary to dispute withdrawal
Before withdrawing the security property from foreclosure under
subparagraph (B) or (C) of subsection (a)(1) 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withdrawn.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) Effect of cancellation
(1) Mortgage unaffected
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.
(2) Commencement of new foreclosure sale
Cancellation of a foreclosure sale under this chapter shall have
no effect on the commencement of a subsequent foreclosure proceeding
under this chapter.
(d) Notice of cancellation
The foreclosure commissioner shall file a notice of cancellation in
the same place and manner provided for filing the notice of default and
foreclosure sale in section 3758 of this title.
(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
Codification
Section is based on section 810 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.
Section Referred to in Other Sections
This section is referred to in section 3760 of this title.