Current as of: February 2010
(a) In general
(1) Manner and time
A foreclosure sale pursuant to this chapter shall be held at
public auction and shall be scheduled to begin between the hours
of 9 o'clock ante meridian and 4 o'clock post meridian local
time.
(2) Location
The foreclosure sale shall be held at a location specified in
the notice of default and foreclosure sale and such location
shall be at a place where foreclosure real estate auctions are
customarily held in the county or counties in which the property
to be sold is located, or at a courthouse therein, or at or on
the property to be sold. Sale of security property situated in
two or more counties may be held in any 1 of the counties in
which any part of the security property is situated.
(3) Sale of multiple properties
The foreclosure commissioner may designate the order in which
multiple security properties are sold.
(b) Duties of foreclosure commissioner
(1) Conduct of sale
(A) In general
The foreclosure commissioner shall conduct the foreclosure
sale in accordance with the provisions of this chapter and in a
manner fair to both the mortgagor and the Secretary.
(B) Written bids
Written one-price sealed bids shall be accepted by the
foreclosure commissioner from the Secretary and other persons
for entry by announcement by the foreclosure commissioner at
the sale.
(C) Auctioneer
The foreclosure commissioner may serve as auctioneer, or, in
accordance with regulations of the Secretary, may employ an
auctioneer to be paid from the commission provided for in
section 3761(5) of this title.
(2) Eligible participants
(A) In general
The Secretary, and any other person who has submitted a
written one-price bid, may bid at the foreclosure sale.
(B) Prohibited participants
The foreclosure commissioner or any relative, related
business entity, or employee of the foreclosure commissioner or
a related business entity shall not be permitted to bid in any
manner on the security property subject to foreclosure sale,
except that the foreclosure commissioner or an auctioneer may
be directed by the Secretary to enter a bid on the Secretary's
behalf.
(c) Adjournment or cancellation of sale
(1) General authority
The foreclosure commissioner may, before or at the time of the
foreclosure sale, adjourn or cancel the foreclosure sale if the
commissioner determines, in the commissioner's discretion, that -
(A) circumstances are not conducive to a sale which is fair
to the mortgagor and the Secretary; or
(B) additional time is necessary to determine whether the
security property should be withdrawn from foreclosure, as
provided in section 3759 of this title.
(2) Adjournment to same or later day
The foreclosure commissioner may adjourn a foreclosure sale to
a later hour the same day by announcing or posting the new time
and place of the foreclosure sale, or may adjourn the foreclosure
sale for not less than 9 and not more than 31 days, in which case
the commissioner shall serve a notice of default and foreclosure
sale revised to recite the fact that the foreclosure sale has
been adjourned to a specified date, as well as any other
information the foreclosure commissioner deems appropriate. Such
notice shall be served by publication and mailing in accordance
with section 3758 of this title, except that publication may be
made on any of 3 separate days before the revised date of
foreclosure sale, and mailing may be made at any time not less
than 7 days before the date to which the foreclosure sale has
been adjourned.
(d) Cash deposits
The foreclosure commissioner may require a bidder to make a cash
deposit in an amount or percentage set by the foreclosure
commissioner and stated in the notice of foreclosure sale before
the bid is accepted. A successful bidder at the foreclosure sale
who fails to comply with the terms of the sale may be required to
forfeit the cash deposit or, at the election of the foreclosure
commissioner after consultation with the Secretary, shall be liable
to the Secretary for any costs incurred as a result of such
failure.
(e) Presumption of validity of sale
Any foreclosure sale held in accordance with this chapter shall
be conclusively presumed to have been conducted in a legal, fair,
and reasonable manner. The sale price shall be conclusively
presumed to be reasonable and equal to the fair market value of the
property.
Legislative History ________________________________________________________________________
Questions & Answers: Home ForeclosureU.S. Code Provisions: Home ForeclosureState Laws: Home Foreclosure
Related Articles: Home Foreclosure
 |
Email
Print