[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR27.107]



[Page 301]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 27_NONJUDICIAL FORECLOSURE OF MULTIFAMILY AND SINGLE FAMILY MORTGAGES

--Table of Contents

 

      Subpart B_Nonjudicial Foreclosure of Single Family Mortgages

 

Sec.  27.107  Presale reinstatement.



    (a) The foreclosure commissioner shall withdraw the security 

property from foreclosure and cancel the foreclosure sale only in 

accordance with the provisions of the Statute and as more fully provided 

in paragraphs (b) and (c) of this section in regard to presale 

reinstatements.

    (b) To obtain a presale reinstatement in cases involving a monetary 

default, there must be tendered to the foreclosure commissioner before 

public auction is completed all amounts which would be due under the 

mortgage agreement if payments under the mortgage had not been 

accelerated and all costs of foreclosure incurred for which payment from 

the proceeds of foreclosure is provided in the Statute, and the 

foreclosure commissioner must find that there are no nonmonetary 

defaults; provided, however, that the Secretary may refuse to cancel a 

foreclosure sale pursuant to this subparagraph if the current mortgagor 

or owner of record has, on one or more previous occasions, caused a 

foreclosure of the mortgage, commenced pursuant to the Statute and this 

subpart or otherwise, to be canceled by curing a default.

    (c) To obtain a presale reinstatement in cases involving a 

nonmonetary default:

    (1) The foreclosure commissioner, upon application of the mortgagor 

before the date of foreclosure sale, must find that all nonmonetary 

defaults are cured and that there are no monetary defaults; and

    (2) There must be tendered to the foreclosure commissioner before 

public auction is completed all amounts due under the mortgage agreement 

(excluding all amounts which would be due under the mortgage agreement 

if the mortgage payments had been accelerated), including all amounts of 

expenditures secured by the mortgage and all costs of foreclosure 

incurred for which payment would be made from the proceeds of 

foreclosure as provided in the Statute.

    (d) Before withdrawing the security property from foreclosure, the 

foreclosure commissioner shall notify the Secretary of the proposed 

withdrawal by telephone or other telecommunication device and shall also 

provide the Secretary with a written statement of the reasons for the 

proposed withdrawal along with all documents submitted by the mortgagor 

in support of the proposed withdrawal. Upon receipt of this statement, 

the Secretary shall have ten (10) days in which to demonstrate why the 

security property should not be withdrawn from foreclosure, and if the 

Secretary makes this demonstration, the property shall not be withdrawn 

from foreclosure. The Secretary shall provide the mortgagor with a copy 

of any statement prepared by the Secretary in opposition to the proposed 

withdrawal at the same time the statement is submitted to the 

foreclosure commissioner. If the Secretary receives the foreclosure 

commissioner's written statement less than 10 days before the scheduled 

foreclosure sale, the sale shall automatically be adjourned for 14 days, 

during which time it may be cancelled. Notice of the re-scheduled sale, 

if any, shall be served as described in Sec.  27.111.