[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: 24CFR27.15]



[Page 296]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 27_NONJUDICIAL FORECLOSURE OF MULTIFAMILY AND SINGLE FAMILY MORTGAGES

--Table of Contents

 

       Subpart A_Nonjudicial Foreclosure of Multifamily Mortgages

 

Sec.  27.15  Notice of default and foreclosure sale.



    (a) Within 45 days after accepting his or her designation to act as 

commissioner, the commissioner shall commence the foreclosure by serving 

a Notice of Default and Foreclosure Sale.

    (b) The Notice of Default and Foreclosure Sale shall contain the 

following information:

    (1) The Notice shall state that all deposits and the balance of the 

purchase price shall be paid by certified or cashier's check. The Notice 

shall state that no deposit will be required of the Secretary when the 

Secretary bids at the foreclosure sale.

    (2) Any terms and conditions to which the purchaser at the 

foreclosure sale must agree under Sec.  27.20. The Notice need not 

describe at length each and every pertinent term and condition, 

including any required use agreements and deed covenants, if it 

describes these terms and conditions in a general way and if it states 

that the precise terms will be available from the commissioner upon 

request.

    (c) The Notice need not be mailed to mortgagors who have been 

released from all obligations under the mortgage.

    (d) In deciding which newspaper or newspapers to select as general 

circulation newspapers for purposes of publication of the required 

notice, the commissioner need not select the newspaper with the largest 

circulation.

    (e) In addition to Notice posting requirements included in the Act, 

the Notice shall also be posted in the project office and in such other 

appropriate conspicuous places as the commissioner deems appropriate for 

providing notice to all tenants. Posting shall not be required if the 

commissioner in his or her discretion finds that the act of posting is 

likely to lead to a breach of the peace or may result in the increased 

risk of vandalism or damage to the property. Any such finding will be 

made in writing. Entry on the premises by the commissioner for the 

purpose of posting shall be privileged as against all other persons.

    (f) When service of the Notice of Default and Foreclosure Sale is 

made by mail, the commissioner shall at the same time and in the same 

manner serve a copy of the instrument by which the General Counsel, 

under Sec.  27.10(b), has designated him or her to act as commissioner.

    (g) At least 7 days before the foreclosure sale, the commissioner 

will record both the instrument designating him or her to act as 

commissioner and the Notice of Default and Foreclosure Sale in the same 

office or offices in which the mortgage was recorded.