Laws: Cases and Codes : U.S. Code : Title 12 : Section 3706


   
U.S. Code as of: 01/19/04
Section 3706. Notice of default and foreclosure sale; condition and term of sale

      (a) The notice of default and foreclosure sale to be served in
    accordance with this chapter shall be subscribed with the name and
    address of the foreclosure commissioner and the date on which
    subscribed, and shall set forth the following information:
        (1) the names of the Secretary, the original mortgagee and the
      original mortgagor;
        (2) the street address or a description of the location of the
      security property, and a description of the security property, or
      so much thereof as is to be offered for sale, sufficient to
      identify the property to be sold;
        (3) the date of the mortgage, the office in which the mortgage
      is recorded, and the liber and folio or other description of the
      location of recordation of the mortgage;
        (4) the failure to make payment, including the due date of the
      earliest installment payment remaining wholly unpaid as of the
      date the notice is subscribed, or the description of other
      default or defaults upon which foreclosure is based, and the
      acceleration of the secured indebtedness;
        (5) the date, time, and place of the foreclosure sale;
        (6) a statement that the foreclosure is being conducted
      pursuant to this chapter;
        (7) the types of costs, if any, to be paid by the purchaser
      upon transfer of title; and
        (8) the amount and method of deposit to be required at the
      foreclosure sale (except that no deposit shall be required of the
      Secretary), the time and method of payment of the balance of the
      foreclosure purchase price and other appropriate terms of sale.

      (b)(1) Except as provided in paragraph (2)(A), the Secretary may
    require, as a condition and term of sale, that the purchaser at a
    foreclosure sale under this chapter agree to continue to operate
    the security property in accordance with the terms of the program
    under which the mortgage insurance or assistance was provided, or
    any applicable regulatory or other agreement in effect with respect
    to such property immediately prior to the time of foreclosure sale.
      (2)(A) In any case where the majority of the residential units in
    a property subject to such a sale are occupied by residential
    tenants at the time of the sale, the Secretary shall require, as a
    condition and term of sale, any purchaser (other than the
    Secretary) to operate the property in accordance with such terms,
    as appropriate, of the programs referred to in paragraph (1).
      (B) In any case where the Secretary is the purchaser of a
    multifamily project, the Secretary shall manage and dispose of such
    project in accordance with the provisions of section 203 of the
    Housing and Community Development Amendments of 1978 [12 U.S.C.
    1701z-11].



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