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§ 3759. —  Presale reinstatement.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC3759]

 
                       TITLE 12--BANKS AND BANKING
 
             CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
 
Sec. 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.

(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)

                          Codification

    Section is based on section 810 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 section 3760 of this title.



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