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U.S. Code as of:
01/19/04
Section 3701. Findings and purpose
(a) The Congress finds that -
(1) disparate State laws under which the Secretary of Housing
and Urban Development forecloses multifamily mortgages burden the
programs administered by the Secretary pursuant to these
authorities, and cause detriment to the residents of the affected
projects and the community generally;
(2) long periods to complete the foreclosure of these mortgages
under certain State laws lead to deterioration in the condition
of the properties involved; necessitate substantial Federal
management and holding expenditures; increase the risk of
vandalism, fire loss, depreciation, damage, and waste with
respect to the properties; and adversely affect the residents of
the projects and the neighborhoods in which the properties are
located;
(3) these conditions seriously impair the Secretary's ability
to protect the Federal financial interest in the affected
properties and frustrate attainment of the objectives of the
underlying Federal program authorities, as well as the national
housing goal of "a decent home and a suitable living environment
for every American family";
(4) application of State redemption periods to these mortgages
following their foreclosure would impair the salability of the
properties involved and discourage their rehabilitation and
improvement, thereby compounding the problems referred to in
clause (3);
(5) the availability of a uniform and more expeditious
procedure for the foreclosure of these mortgages by the Secretary
and continuation of the practice of not applying postsale
redemption periods to such mortgages will tend to ameliorate
these conditions; and
(6) providing the Secretary with a nonjudicial foreclosure
procedure will reduce unnecessary litigation by removing many
foreclosures from the courts where they contribute to overcrowded
calendars.
(b) The purpose of this chapter is to create a uniform Federal
foreclosure remedy for multifamily mortgages.
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