§ 3760. — Conduct of sale; adjournment.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3760]
TITLE 12--BANKS AND BANKING
CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
Sec. 3760. Conduct of sale; adjournment
(a) In general
(1) Manner and time
A foreclosure sale pursuant to this chapter shall be held at
public auction and shall be scheduled to begin between the hours of
9 o'clock ante meridian and 4 o'clock post meridian local time.
(2) Location
The foreclosure sale shall be held at a location specified in
the notice of default and foreclosure sale and such location shall
be at a place where foreclosure real estate auctions are customarily
held in the county or counties in which the property to be sold is
located, or at a courthouse therein, or at or on the property to be
sold. Sale of security property situated in two or more counties may
be held in any 1 of the counties in which any part of the security
property is situated.
(3) Sale of multiple properties
The foreclosure commissioner may designate the order in which
multiple security properties are sold.
(b) Duties of foreclosure commissioner
(1) Conduct of sale
(A) In general
The foreclosure commissioner shall conduct the foreclosure
sale in accordance with the provisions of this chapter and in a
manner fair to both the mortgagor and the Secretary.
(B) Written bids
Written one-price sealed bids shall be accepted by the
foreclosure commissioner from the Secretary and other persons
for entry by announcement by the foreclosure commissioner at the
sale.
(C) Auctioneer
The foreclosure commissioner may serve as auctioneer, or, in
accordance with regulations of the Secretary, may employ an
auctioneer to be paid from the commission provided for in
section 3761(5) of this title.
(2) Eligible participants
(A) In general
The Secretary, and any other person who has submitted a
written one-price bid, may bid at the foreclosure sale.
(B) Prohibited participants
The foreclosure commissioner or any relative, related
business entity, or employee of the foreclosure commissioner or
a related business entity shall not be permitted to bid in any
manner on the security property subject to foreclosure sale,
except that the foreclosure commissioner or an auctioneer may be
directed by the Secretary to enter a bid on the Secretary's
behalf.
(c) Adjournment or cancellation of sale
(1) General authority
The foreclosure commissioner may, before or at the time of the
foreclosure sale, adjourn or cancel the foreclosure sale if the
commissioner determines, in the commissioner's discretion, that--
(A) circumstances are not conducive to a sale which is fair
to the mortgagor and the Secretary; or
(B) additional time is necessary to determine whether the
security property should be withdrawn from foreclosure, as
provided in section 3759 of this title.
(2) Adjournment to same or later day
The foreclosure commissioner may adjourn a foreclosure sale to a
later hour the same day by announcing or posting the new time and
place of the foreclosure sale, or may adjourn the foreclosure sale
for not less than 9 and not more than 31 days, in which case the
commissioner shall serve a notice of default and foreclosure sale
revised to recite the fact that the foreclosure sale has been
adjourned to a specified date, as well as any other information the
foreclosure commissioner deems appropriate. Such notice shall be
served by publication and mailing in accordance with section 3758 of
this title, except that publication may be made on any of 3 separate
days before the revised date of foreclosure sale, and mailing may be
made at any time not less than 7 days before the date to which the
foreclosure sale has been adjourned.
(d) Cash deposits
The foreclosure commissioner may require a bidder to make a cash
deposit in an amount or percentage set by the foreclosure commissioner
and stated in the notice of foreclosure sale before the bid is accepted.
A successful bidder at the foreclosure sale who fails to comply with the
terms of the sale may be required to forfeit the cash deposit or, at the
election of the foreclosure commissioner after consultation with the
Secretary, shall be liable to the Secretary for any costs incurred as a
result of such failure.
(e) Presumption of validity of sale
Any foreclosure sale held in accordance with this chapter shall be
conclusively presumed to have been conducted in a legal, fair, and
reasonable manner. The sale price shall be conclusively presumed to be
reasonable and equal to the fair market value of the property.
(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
Codification
Section is based on section 811 of title VIII of S. 2281, One
Hundred Third Congress, as reported July 13, 1994, which was enacted
into law by Pub. L. 103-327.
Section Referred to in Other Sections
This section is referred to in sections 3756, 3759, 3761, 3764 of
this title.