1、272 24 CFR Subtitle A (4111 Edition) Pt. 27 PART 27NONJUDICIAL FORE-CLOSURE OF MULTIFAMILY AND SINGLE FAMILY MORTGAGES Subpart ANonjudicial Foreclosure of Multifamily Mortgages Sec. 27.1 Purpose. 27.2 Scope and applicability. 27.3 Definitions. 27.5 Prerequisites to foreclosure. 27.10 Designation of
2、a foreclosure commis-sioner. 27.15 Notice of default and foreclosure sale. 27.20 Conditions of foreclosure sale. 27.25 Termination or adjournment of fore-closure sale. 27.30 Conduct of the sale. 27.35 Foreclosure costs. 27.40 Disposition of sale proceeds. 27.45 Transfer of title and possession. 27.5
3、0 Management and disposition by the Secretary. Subpart BNonjudicial Foreclosure of Single Family Mortgages 27.100 Purpose, scope and applicability. 27.101 Definitions. 27.102 Designation of foreclosure commis-sioner and substitute commissioner. 27.103 Notice of default and foreclosure sale. 27.105 S
4、ervice of Notice of Default and Fore-closure Sale. 27.107 Presale reinstatement. 27.109 Conduct of sale. 27.111 Adjournment or cancellation of sale. 27.113 Foreclosure costs. 27.115 Disposition of sales proceeds. 27.117 Transfer of title and possession. 27.119 Redemption rights. 27.121 Record of for
5、eclosure and sale. 27.123 Deficiency judgment. AUTHORITY: 12 U.S.C. 1715b, 37013717, 3751 3768; 42 U.S.C. 1452b, 3535(d). SOURCE: 61 FR 48548, Sept. 13, 1996, unless otherwise noted. Subpart ANonjudicial Fore-closure of Multifamily Mort-gages 27.1 Purpose. The purpose of this subpart is to im-plemen
6、t requirements for the adminis-tration of the Multifamily Mortgage Foreclosure Act of 1981 (the Act) (12 U.S.C. 37013717), that clarify, or are in addition to, the requirements con-tained in the Act, which are not repub-lished here and must be consulted in conjunction with the requirements of this s
7、ubpart. The Act creates a uniform Federal remedy for foreclosure of mul-tifamily mortgages. Under a delegation of authority published on February 5, 1982 (47 FR 5468), the Secretary has del-egated to the HUD General Counsel his powers under the Act to appoint a fore-closure commissioner or commis-si
8、oners and to substitute therefor, to fix the compensation of commissioners, and to promulgate implementing regu-lations. 27.2 Scope and applicability. (a) Under the Act and this subpart, the Secretary may foreclose on any de-faulted Secretary-held multifamily mortgage encumbering real estate in any
9、State. The Secretary may use the provisions of these regulations to fore-close on any multifamily mortgage re-gardless of when the mortgage was exe-cuted. (b) The Secretary may, at the Sec-retarys option, use other procedures to foreclose defaulted multifamily mort-gages, including judicial foreclos
10、ure in Federal court and nonjudicial fore-closure under State law. This subpart applies only to foreclosure procedures authorized by the Act and not to any other foreclosure procedures the Sec-retary may use. 27.3 Definitions. The definitions contained in the Act (at 12 U.S.C. 3702) shall apply to t
11、his subpart, in addition to and as further clarified by the following definitions. As used in this subpart: General Counsel means the General Counsel of the Department of Housing and Urban Development; Multifamily mortgage does not include a mortgage covering a property on which there is located a o
12、ne- to four- family residence, except when the one- to four-family residence is subject to a mortgage pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), or section 811 (42 U.S.C. 8013) of the Na-tional Affordable Housing Act. The def-inition of multifamily mortgage also includes a
13、 mortgage taken by the Sec-retary in connection with the previous sale of the project by the Secretary (purchase money mortgage). VerDate Mar2010 08:31 Apr 29, 2011 Jkt 223077 PO 00000 Frm 00282 Fmt 8010 Sfmt 8010 Y:SGML223077.XXX 223077jdjones on DSK8KYBLC1PROD with CFRProvided by IHSNot for Resale
14、No reproduction or networking permitted without license from IHS-,-,-273 Office of the Secretary, HUD 27.15 27.5 Prerequisites to foreclosure. Before commencement of a fore-closure under the Act and this subpart, HUD will provide to the mortgagor an opportunity informally to present rea-sons why the
15、 mortgage should not be foreclosed. Such opportunity may be provided before or after the designation of the foreclosure commissioner but be-fore service of the notice of default and foreclosure. 27.10 Designation of a foreclosure commissioner. (a) When the Secretary determines that a multifamily mor
16、tgage should be foreclosed under the Act and this sub-part, the General Counsel will select and designate one or more foreclosure commissioners to conduct the fore-closure and sale. The method of selec-tion and determination of the quali-fications of the foreclosure commis-sioner shall be at the dis
17、cretion of the General Counsel, and the execution of a designation pursuant to paragraph (b) of this section shall be conclusive evi-dence that the commissioner selected has been determined to be qualified by the General Counsel. (b) After selection of a foreclosure commissioner, the General Counsel
18、 shall designate the commissioner in writing to conduct the foreclosure and sale of the particular multifamily mortgage. The written designation shall be duly acknowledged and shall state the name and business or residen-tial address of the commissioner and any other information the General Counsel
19、deems necessary. The designa-tion shall be effective upon execution by the General Counsel or his des-ignate. Upon receipt of the designation, the commissioner shall demonstrate acceptance by signing the designation and returning a signed copy to the General Counsel. (c) The General Counsel may at a
20、ny time, with or without cause, designate a substitute commissioner to replace a previously designated commissioner. Designation of a substitute commis-sioner shall be in writing and shall con-tain the same information and be made effective in the same manner as the designation of the original commi
21、s-sioner. Upon designation of a sub-stitute commissioner, the substitute commissioner shall serve a copy of the written notice of designation upon the persons listed at sections 369(1) (A) through (C) of the Act (12 U.S.C. 3708(1) (A) through (C) either by mail, in ac-cordance with section 369(1) of
22、 the Act (12 U.S.C. 3708(1), except that the time limitations in that section will not apply, or by any other manner which in the substitute commissioners discre-tion is conducive to giving timely no-tice of substitution. 27.15 Notice of default and fore-closure sale. (a) Within 45 days after accept
23、ing his or her designation to act as commis-sioner, the commissioner shall com-mence the foreclosure by serving a No-tice of Default and Foreclosure Sale. (b) The Notice of Default and Fore-closure Sale shall contain the fol-lowing information: (1) The Notice shall state that all de-posits and the b
24、alance of the purchase price shall be paid by certified or cash-iers check. The Notice shall state that no deposit will be required of the Sec-retary when the Secretary bids at the foreclosure sale. (2) Any terms and conditions to which the purchaser at the foreclosure sale must agree under 27.20. T
25、he No-tice need not describe at length each and every pertinent term and condi-tion, including any required use agree-ments and deed covenants, if it de-scribes these terms and conditions in a general way and if it states that the precise terms will be available from the commissioner upon request. (
26、c) The Notice need not be mailed to mortgagors who have been released from all obligations under the mort-gage. (d) In deciding which newspaper or newspapers to select as general circula-tion newspapers for purposes of publi-cation of the required notice, the com-missioner need not select the news-p
27、aper with the largest circulation. (e) In addition to Notice posting re-quirements included in the Act, the Notice shall also be posted in the project office and in such other appro-priate conspicuous places as the com-missioner deems appropriate for pro-viding notice to all tenants. Posting VerDate
28、 Mar2010 08:31 Apr 29, 2011 Jkt 223077 PO 00000 Frm 00283 Fmt 8010 Sfmt 8010 Y:SGML223077.XXX 223077jdjones on DSK8KYBLC1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-274 24 CFR Subtitle A (4111 Edition) 27.20 shall not be required if
29、the commis-sioner 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 find-ing will be made in writing. Entry on the premises by the commissioner for the purpose of post
30、ing shall be privi-leged as against all other persons. (f) When service of the Notice of De-fault 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 27.10(b), has designated him or he
31、r to act as commissioner. (g) At least 7 days before the fore-closure 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. 27.20 Conditions
32、 of foreclosure sale. (a) The requirements of section 367(b)(2)(A) of the Act (12 U.S.C. 3706(b)(2)(A) apply if a majority of the residential units in a property subject to foreclosure sale pursuant to the Act and this subpart are occupied by resi-dential tenants either on the date of the foreclosur
33、e sale or on the date on which the General Counsel designates the foreclosure commissioner. (b) Terms which the Secretary may find appropriate to require pursuant to section 367(b) of the Act (12 U.S.C. 3706(b), and such other provisions of law as may be applicable, may include provisions relating t
34、o use and owner-ship of the project property, tenant ad-mission standards and procedures, rent schedules and increases, and project operation and maintenance. In deter-mining terms which may be appro-priate to require, the Secretary shall consider: (1) The history of the project, includ-ing the purp
35、oses of the program under which the mortgage insurance or as-sistance was provided, and any other program of HUD under which the project was developed or otherwise as-sisted and the probable causes of project failure resulting in its default; (2) A financial analysis of the project, including an app
36、raisal of the fair mar-ket value of the property for its high-est and best use; (3) A physical analysis of the project, including the condition of the struc-ture and grounds, the need for rehabili-tation or repairs, and the estimated costs of any such rehabilitation or re-pairs; (4) The income level
37、s of the occu-pants of the project; (5) Characteristics, including rental levels, of comparable housing in the area, with particular reference to whether current conditions and dis-cernible trends in the area fairly indi-cate a likelihood that, for the foresee-able future after foreclosure and sale,
38、 the project will continue to provide rental or cooperative housing and mar-ket rentals obtainable in the project will be affordable by low- or moderate- income persons; (6) The availability of or need for rental housing for low- and moderate- income persons in the area, including actions being take
39、n or projected to be taken to address such needs and the impact of such actions on the project; (7) An assessment of the number of occupants who might be displaced as a result of the manner of disposition; (8) The eligibility of the occupants of the property for rental assistance under any program a
40、dministered by HUD and the availability of funding for such assistance if necessary in order that the units occupied by such occu-pants will remain available to and af-fordable by such persons, or if nec-essary in order to assure the financial feasibility of the project after fore-closure and sale s
41、ubject to the terms to be required by the Secretary; and (9) Such other factors relating to the project as the Secretary shall consider appropriate. (c) Terms which the Secretary may require to be agreed to by the pur-chaser pursuant to section 367(b) of the Act (12 U.S.C. 3706(b) shall generally no
42、t be more restrictive, or binding for a longer duration, than the terms by which the mortgagor was bound prior to the foreclosure. For example: If the mortgage being foreclosed was held by the Secretary under section 312 of the Housing Act of 1964 (42 U.S.C. 1452b), VerDate Mar2010 08:31 Apr 29, 201
43、1 Jkt 223077 PO 00000 Frm 00284 Fmt 8010 Sfmt 8010 Y:SGML223077.XXX 223077jdjones on DSK8KYBLC1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-275 Office of the Secretary, HUD 27.30 any terms required by the Secretary pursuant to this se
44、ction shall be in ef-fect no longer than five years after the completion of the rehabilitation work funded by the section 312 loan. No terms shall be required pursuant to this section if the foreclosure sale oc-curs more than five years after the completion of such rehabilitation work (signified by
45、the due date for com-mencement of amortization payments in the section 312 loan note). (d) The limitation contained in para-graph (c) of this section applies only to such terms as the Secretary may re-quire the purchaser to agree to, as a condition and term of the sale, under paragraph (a) of this s
46、ection. Nothing contained in paragraph (c) of this sec-tion shall prevent the Secretary and the purchaser from entering into a sub-sidy agreement under any program ad-ministered by the Secretary containing terms binding upon either party which are longer in duration than would be permitted to be req
47、uired by paragraph (c) of this section. (e) Any terms required by the Sec-retary to be agreed to by the purchaser as a condition and term of sale under this section and section 367(b) of the Act (12 U.S.C. 3706(b) shall be em-bodied in a use agreement to be exe-cuted by the Secretary and the pur-cha
48、ser. Such terms also may be in-cluded, or referred to, in appropriate covenants contained in the deed to be delivered by the foreclosure commis-sioner under 27.45. Terms required by the Secretary pursuant to this section shall be stated or described in the No-tice of Default and Foreclosure Sale und
49、er 27.15. (f) The defaulting mortgagor, or any principal, successor, affiliate, or as-signee thereof, on the multifamily mortgage being foreclosed, shall not be eligible to bid on, or otherwise acquire, the property being foreclosed by the Department under this subpart or any other provision of law. A principal and an affiliate are defined as pro-vided at 24 CFR 24.105. 61 FR 48548, Sept. 13, 1996, as amended at 66 FR 35847, July 9, 2001 27.25 Ter
