(a) Grounds
Except as provided in sections 3707(b) and 3710(c) of this title,
the foreclosure commissioner shall withdraw the security property
from foreclosure and cancel the foreclosure sale only if -
(1) the Secretary so directs the commissioner prior to or at
the time of sale;
(2) the commissioner finds, upon application of the mortgagor
at least three days prior to the date of 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
(3)(A) 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; (B) 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 (C) there is tendered to
the foreclosure commissioner before public auction is completed
all amounts due under the mortgage agreement (excluding
additional amounts which would have been due if mortgage payments
had been accelerated), all amounts of expenditures secured by the
mortgage and all costs of foreclosure incurred for which payment
from the proceeds of foreclosure is provided in section 3711 of
this title, except that the Secretary shall have discretion to
refuse to cancel a foreclosure pursuant to this paragraph (3) 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 part or otherwise, to be canceled by
curing a default.
(b) Views of Secretary
Prior to withdrawing the security property from foreclosure in
the circumstances described in subsection (a)(2) or (a)(3) 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should not be so withdrawn.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) Mortgage subsequent to reinstatement
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.
(d) Subsequent foreclosures
If the foreclosure commissioner cancels a foreclosure sale under
this chapter a new foreclosure may be subsequently commenced as
provided in this chapter.
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