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U.S. Code as of:
01/19/04
Section 3707. Commencement of foreclosure; powers and duties of foreclosure commissioner or substitute
(a) If the Secretary as holder of a multifamily mortgage
determines that the prerequisites to foreclosure set forth in
section 3705 of this title are satisfied, the Secretary may request
the foreclosure commissioner to commence foreclosure of the
mortgage. Upon such request, the foreclosure commissioner shall
commence foreclosure of the mortgage, by commencing service of a
notice of default and foreclosure sale in accordance with section
3708 of this title.
(b) Subsequent to commencement of a foreclosure under this
chapter, the Secretary may designate a substitute foreclosure
commissioner at any time up to forty-eight hours prior to the time
of foreclosure sale, and the foreclosure shall continue without
prejudice, unless the substitute commissioner, in his or her sole
discretion, finds that continuation of the foreclosure sale will
unfairly affect the interests of the mortgagor. In the event that
the substitute commissioner makes such a finding, the substitute
commissioner shall cancel the foreclosure sale, or adjourn such
sale in the manner provided in section 3710(c) of this title. Upon
designation of a substitute foreclosure commissioner, a copy of the
written notice of such designation referred to in section 3704 of
this title shall be served upon the persons set forth in section
3708(1) of this title (1) by mail as provided in such section 3708
of this title (except that the minimum time periods between mailing
and the date of foreclosure sale prescribed in such section shall
not apply to notice by mail pursuant to this subsection), or (2) in
any other manner, which in the substitute commissioner's sole
discretion, is conducive to achieving timely notice of such
substitution. In the event a substitute foreclosure commissioner is
designated less than forty-eight hours prior to the time of the
foreclosure sale, the pending foreclosure shall be terminated and a
new foreclosure shall be commenced by commencing service of a new
notice of default and foreclosure sale.
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