[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: 24CFR27.109]



[Page 301-302]

 

                 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.  27.109  Conduct of sale.



    (a) The foreclosure sale shall be conducted in a manner and at a 

time and place as identified in the Notice of Default and Foreclosure 

Sale and in accordance with the provisions of the Statute.

    (b) In addition to bids made in person at the sale, the foreclosure 

commissioner shall accept written one-price sealed bids from any party, 

including the Secretary, for entry by announcement at the sale so long 

as those bids conform to the requirements described in the Notice of 

Default and Foreclosure Sale. The foreclosure commissioner shall 

announce the name of each such bidder and the amount of the bid. The 

commissioner shall accept oral bids from any party, including parties 

who submitted one-price sealed bids, if



[[Page 302]]



those oral bids conform to the requirements in the Notice of Default and 

Foreclosure Sale. Before the close of the sale the commissioner shall 

announce the amount of the high bid and the name of the successful 

bidder. If the successful bidder fails to comply with the terms of the 

sale, the HUD Field Office representative will provide instructions to 

the commissioner about offering the property to the second highest 

bidder, or having a new sale, or other instruction at the discretion of 

the HUD representative.

    (c) Prohibited participants. Relatives of the foreclosure 

commissioner who may not bid include parents, siblings, spouses and 

children. A related business entity that may not bid or whose employees 

may not bid is one whose relationship (at the time the foreclosure 

commissioner is designated and during the term of service as foreclosure 

commissioner) with the entity of the foreclosure commissioner is such 

that, directly or indirectly, one entity formulates, directs, or 

controls the other entity; or has the power to formulate, direct, or 

control the other entity; or has the responsibility and authority to 

prevent, or promptly to correct, the offensive conduct of the other 

entity.

    (d) Auctioneers. If the commissioner employs an auctioneer to 

conduct the foreclosure sale, the auctioneer must be a licensed 

auctioneer, an officer of State or local government, or any other person 

who commonly conducts foreclosure sales in the area in which the 

security property is located.