[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: 24CFR27.40]



[Page 299]

 

                 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.  27.40  Disposition of sale proceeds.



    (a) The priority of the Secretary's lien shall be determined by the 

Federal first-in-time first-in-right rule. State laws affording priority 

to liens recorded after the mortgage are preempted.

    (b) If there is more than one party holding a lien or assessment 

payable from sales proceeds, the claim of each party holding the same 

kind of lien or assessment will be given the relative priority to which 

it would be entitled under the law of the State in which the security 

property is located.

    (c) The commissioner will keep such records as will permit the 

Secretary to verify the costs claimed under section 369C of the Act (12 

U.S.C. 3711), and otherwise to audit the commissioner's disposition of 

the sale proceeds.