§ 3763. — Transfer of title and possession.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3763]
TITLE 12--BANKS AND BANKING
CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
Sec. 3763. Transfer of title and possession
(a) Delivery of deeds
The foreclosure commissioner shall, upon delivery of a deed or deeds
to the purchaser or purchasers (which shall be without warranty or
covenants to the purchaser or purchasers) obtain the balance of the
purchase price in accordance with the terms of sale provided in the
notice of default and foreclosure sale. Notwithstanding any State law to
the contrary, delivery of a deed by the foreclosure commissioner shall
be a conveyance of the property, and constitute passage of title to the
mortgaged property, and no judicial proceedings shall be required
ancillary or supplementary to the procedures provided in this chapter to
assure the validity of the conveyance or confirmation of such
conveyance.
(b) Right of possession
A purchaser at a foreclosure sale held pursuant to this chapter
shall be entitled to possession upon passage of title under subsection
(a) of this section to the mortgaged property, subject to any interest
or interests not barred under section 3765 of this title. Any person
remaining in possession of the mortgaged property after the passage of
title shall be deemed a tenant at sufferance subject to eviction under
local law.
(c) Death of purchaser
If a purchaser dies before execution and delivery of the deed
conveying the property to the purchaser, the foreclosure commissioner
shall execute and deliver the deed to a representative of the decedent
purchaser's estate upon payment of the purchase price in accordance with
the terms of sale. Such delivery to the representative of the
purchaser's estate shall have the same effect as if accomplished during
the lifetime of the purchaser.
(d) Bona fide purchaser
The purchaser of property under this chapter shall be presumed to be
a bona fide purchaser.
(e) No right of redemption
(1) In general
There shall be no right of redemption, or right of possession
based upon a right of redemption, in the mortgagor or others
subsequent to a foreclosure completed pursuant to this chapter.
(2) Certain provisions
Section 1710(l) of this title and section 1452c of title 42
shall not apply to mortgages foreclosed under this chapter.
(f) Taxes
When a mortgage foreclosed pursuant to this chapter is conveyed to
the Secretary, no tax shall be imposed or collected with respect to the
foreclosure commissioner's deed (including any tax customarily imposed
upon the deed instrument or upon the conveyance or transfer of title to
the property). Failure to collect or pay a tax of the type and under the
circumstances stated in the preceding sentence shall not be grounds for
refusing to record such a deed, for failing to recognize such
recordation as imparting notice, or for denying the enforcement of such
a deed and its provisions in any State or Federal court.
(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
Codification
Section is based on section 814 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.