12 USC 3759 - Presale reinstatement

U.S Code last checked for updates: Nov 22, 2024

§ 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

(b)

Opportunity of Secretary to dispute withdrawal

(c)

Effect of cancellation

(1)

Mortgage unaffected

(2)

Commencement of new foreclosure sale

(d)

Notice of cancellation

(Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.)

cite as: 12 USC 3759