Laws: Cases and Codes : U.S. Code : Title 12 : Section 3707


   
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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