12 U.S.C. § 3759 : US Code - Section 3759: Presale reinstatement

Search 12 U.S.C. § 3759 : US Code - Section 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
The Secretary may refuse to cancel a foreclosure sale pursuant
to paragraph (1)(C) if the current mortgagor or owner of record
has, on one or more previous occasions, caused a foreclosure of
the mortgage, commenced pursuant to this chapter or otherwise, to
be canceled by curing a default.
(b) Opportunity of Secretary to dispute withdrawal
Before withdrawing the security property from foreclosure under
subparagraph (B) or (C) of subsection (a)(1) of this section, the
foreclosure commissioner shall afford the Secretary a reasonable
opportunity to demonstrate why the security property should not be
so withdrawn.
(c) Effect of cancellation
(1) Mortgage unaffected
In any case in which a foreclosure commenced under this chapter
is canceled, the mortgage shall continue in effect as though
acceleration had not occurred.
(2) Commencement of new foreclosure sale
Cancellation of a foreclosure sale under this chapter shall
have no effect on the commencement of a subsequent foreclosure
proceeding under this chapter.
(d) Notice of cancellation
The foreclosure commissioner shall file a notice of cancellation
in the same place and manner provided for filing the notice of
default and foreclosure sale in section 3758 of this title.