View source for Governing Statute 12 USC 3751 et. seq.

HUD FORECLOSURES
Current as of 5/1/2025

See 12 USC 3751 et. seq.

[https://www.law.cornell.edu/uscode/text/12/3754 § 3754]. Designation of foreclosure commissioner
 
(a) In general 
The Secretary may designate a person or persons to serve as a foreclosure commissioner or commissioners for the purpose of foreclosing upon a single family mortgage. 
(b) Power of sale 
A foreclosure commissioner designated under this section shall have a nonjudicial power of sale. 
(c) Qualifications 
The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if not a natural person, the foreclosure commissioner must be duly authorized to transact business under laws of the State in which the security property is located. No person shall be designated as a foreclosure commissioner unless that person is responsible, financially sound, and competent to conduct a foreclosure. 
(d) Designation procedure 
(1) Written designation 
The Secretary may designate a foreclosure commissioner by executing a written designation stating the name and business or residential address of the commissioner, except that if a person is designated in his or her capacity as an official or employee of a government or corporate entity, such person may be designated by his or her unique title or position instead of by name. 
(2) Substitute commissioners 
The Secretary may, with or without cause, designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner. 
(3) Number 
More than 1 foreclosure commissioner may be designated at any time.

[https://www.law.cornell.edu/uscode/text/12/3756 § 3756]. Commencement of foreclosure

(a) Request to foreclosure commissioner 
If the Secretary, as holder of a single family mortgage, determines that the prerequisites to foreclosure set forth in section 3755 of this title are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of a single family mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with sections 3757 and 3758 of this title. 
(b) Designation of substitute foreclosure commissioner 
After commencement of a foreclosure under this chapter, the Secretary may designate a substitute foreclosure commissioner at any time before the time of the foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in that commissioner’s sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the mortgagor. If the substitute commissioner makes such a finding, the substitute commissioner shall cancel the foreclosure sale, or adjourn such sale in accordance with section 3760 (c) of this title. 
(c) Written notice 
Upon designation of a substitute foreclosure commissioner, a copy of the written notice of such designation described in section 3754 of this title shall be served— 
(1) by mail, as provided in section 3758 of this title (except that the minimum time periods between mailing and the date of foreclosure sale prescribed in such section shall not apply); or 
(2) in any other manner which, in the substitute commissioner’s sole discretion, is conducive to achieving timely notice of such substitution. 

[https://www.law.cornell.edu/uscode/text/12/3757 § 3757]. Notice of default and foreclosure sale

The notice of default and foreclosure sale to be served in accordance with this chapter shall set forth— 
(1) the name and address of the foreclosure commissioner; 
(2) the date on which the notice is issued; 
(3) the names of— 
(A) the Secretary; 
(B) the original mortgagee (if other than the Secretary); and 
(C) the original mortgagor; 
(4) the street address or a description of the location of the security property, and a description of the security property, sufficient to identify the property to be sold; 
(5) the date of the mortgage, the office in which the mortgage is recorded, and the liber number and folio or other appropriate description of the location of recordation of the mortgage; 
(6) identification of the failure to make payment, including the due date of the earliest installment payment remaining wholly unpaid as of the date on which the notice is issued upon which the foreclosure is based, or a description of any other default or defaults upon which foreclosure is based, and the acceleration of the secured indebtedness; 
(7) the date, time, and location of the foreclosure sale; 
(8) a statement that the foreclosure is being conducted pursuant to this chapter; 
(9) a description of the types of costs, if any, to be paid by the purchaser upon transfer of title; 
(10) the amount and method of deposit to be required at the foreclosure sale (except that no deposit shall be required of the Secretary) and the time and method of payment of the balance of the foreclosure purchase price; and 
(11) any other appropriate terms of sale or information, as the Secretary may determine

[https://www.law.cornell.edu/uscode/text/12/3758 § 3758]. Service of notice of foreclosure sale

The foreclosure commissioner shall serve the notice of default and foreclosure sale described in section 3757 of this title upon the following persons and in the following manner, and no additional notice shall be required to be served, notwithstanding any notice requirements of any State or local law: 
(1) Timing 
Not less than 21 days before the date of the foreclosure sale, the notice of default and foreclosure sale shall be filed in the manner authorized for filing a notice of an action concerning real property according to the law of the State in which the security property is located or, if none, in the manner authorized by section 3201 of title 28. 
(2) Notice by mail 
(A) In general 
The notice of foreclosure sale shall be sent by certified or registered mail, postage prepaid and return receipt requested, to the following: 
(i) Current owner The current security property owner of record, as the record existed 45 days before the date originally set for the foreclosure sale (whether or not the notice describes a sale adjourned). 
(ii) Mortgagors All mortgagors of record or other persons who appear on the basis of the record to be liable for part or all of the mortgage debt, as the record existed 45 days before the date originally set for the foreclosure sale (whether or not the notice describes a sale adjourned). 
(iii) Dwelling units All dwelling units in the security property (whether or not the notice describes a sale adjourned). 
(iv) Other lienholders All persons holding liens of record upon the security property, as the record existed 45 days before the date originally set for the foreclosure sale (whether or not the notice describes a sale adjourned). 
(B) Timing 
(i) Notice under clauses (i) and (ii) Notice under clauses (i) and (ii) of subparagraph (A) shall be mailed not less than 21 days before the date of the foreclosure sale, and shall be mailed to the current owner and mortgagor at the last known address of the current owner and mortgagor, or, if none, to the address of the security property, or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such current owner and mortgagor. 
(ii) Notice under clause (iii) Notice under clause (iii) of subparagraph (A) shall be mailed not less than 21 days before the date of the foreclosure sale. If the names of the occupants of the security property are not known to the Secretary, or the security property has more than 1 dwelling, the notice shall be posted at the security property not less than 21 days before the foreclosure sale. 
(iii) Notice under clause (iv) Notice under clause (iv) of subparagraph (A) shall be mailed not less than 21 days before the date of the foreclosure sale, and shall be mailed to each such lienholder’s address of record or, at the discretion of the foreclosure commissioner, to any other address believed to be that of such lienholder. 
(C) Effectiveness of notice 
Notice by mail pursuant to this section or section 3756 (c) of this title shall be deemed duly given upon mailing, whether or not received by the addressee and whether or not a return receipt is received or the notice is returned. 
(3) Publication 
(A) In general 
A copy of the notice of default and foreclosure sale shall be published once a week during 3 successive calendar weeks before the date of the foreclosure sale. Such publication shall be in a newspaper or newspapers having general circulation in the county or counties in which the security property being sold is located. To the extent practicable, the newspaper or newspapers chosen shall be a newspaper or newspapers having circulation conducive to achieving notice of foreclosure by publication. A legal newspaper that is accepted as a newspaper of legal record in the county or counties in which the security property being sold is located shall be considered a newspaper having general circulation for the purposes of this paragraph. 
(B) Exception 
If there is no newspaper published at least weekly which has a general circulation in one of the counties in which the security property being sold is located, copies of the notice of default and foreclosure sale shall be posted not less than 21 days before the date of the foreclosure sale— 
(i) at the courthouse of any county or counties in which the security property is located; and 
(ii) at the place where the sale is to be held. 

[https://www.law.cornell.edu/uscode/text/12/3763 § 3763]. Transfer of title and possession
 
(a) Delivery of deeds 
The foreclosure commissioner shall, upon delivery of a deed or deeds to the purchaser or purchasers (which shall be without warranty or covenants to the purchaser or purchasers) obtain the balance of the purchase price in accordance with the terms of sale provided in the notice of default and foreclosure sale. Notwithstanding any State law to the contrary, delivery of a deed by the foreclosure commissioner shall be a conveyance of the property, and constitute passage of title to the mortgaged property, and no judicial proceedings shall be required ancillary or supplementary to the procedures provided in this chapter to assure the validity of the conveyance or confirmation of such conveyance. 
(b) Right of possession 
A purchaser at a foreclosure sale held pursuant to this chapter shall be entitled to possession upon passage of title under subsection (a) of this section to the mortgaged property, subject to any interest or interests not barred under section 3765 of this title. Any person remaining in possession of the mortgaged property after the passage of title shall be deemed a tenant at sufferance subject to eviction under local law. 
(c) Death of purchaser 
If a purchaser dies before execution and delivery of the deed conveying the property to the purchaser, the foreclosure commissioner shall execute and deliver the deed to a representative of the decedent purchaser’s estate upon payment of the purchase price in accordance with the terms of sale. Such delivery to the representative of the purchaser’s estate shall have the same effect as if accomplished during the lifetime of the purchaser. 
(d) Bona fide purchaser 
The purchaser of property under this chapter shall be presumed to be a bona fide purchaser. 
(e) No right of redemption 
(1) In general 
There shall be no right of redemption, or right of possession based upon a right of redemption, in the mortgagor or others subsequent to a foreclosure completed pursuant to this chapter. 
(2) Certain provisions 
Section 1710 (l) of this title and section 1452c of title 42 shall not apply to mortgages foreclosed under this chapter. 
(f) Taxes 
When a mortgage foreclosed pursuant to this chapter is conveyed to the Secretary, no tax shall be imposed or collected with respect to the foreclosure commissioner’s deed (including any tax customarily imposed upon the deed instrument or upon the conveyance or transfer of title to the property). Failure to collect or pay a tax of the type and under the circumstances stated in the preceding sentence shall not be grounds for refusing to record such a deed, for failing to recognize such recordation as imparting notice, or for denying the enforcement of such a deed and its provisions in any State or Federal court. 

[https://www.law.cornell.edu/uscode/text/12/3764 § 3764]. Record of foreclosure and sale
 
(a) Statements included 
To establish a sufficient record of foreclosure and sale, the foreclosure commissioner shall include in the recitals of the deed to the purchaser, or prepare as an affidavit or addendum to the deed, a statement setting forth— 
(1) the date, time, and place of the foreclosure sale; 
(2) that the mortgage was held by the Secretary, the date of the mortgage, the office in which the mortgage was recorded, and the liber number and folio or other appropriate description of the recordation of the mortgage; 
(3) the particulars of the foreclosure commissioner’s service of the notice of default and foreclosure sale in accordance with sections 3758 and 3760 of this title; 
(4) the date and place of filing the notice of default and foreclosure sale; 
(5) that the foreclosure was conducted in accordance with the provisions of this chapter and with the terms of the notice of default and foreclosure sale; and 
(6) the sale amount. 
(b) Effect of statements 
The items set forth in subsection (a) of this section shall— 
(1) be prima facie evidence of the truth of such facts in any Federal or State court; and 
(2) evidence a conclusive presumption in favor of bona fide purchasers and encumbrancers for value without notice. 
Encumbrancers for value include liens placed by lenders who provide the purchaser with purchase money in exchange for a security interest in the newly-conveyed property. 
(c) Recordation of instruments 
The deed executed by the foreclosure commissioner, the foreclosure commissioner’s affidavit (if prepared) and any other instruments submitted for recordation in relation to the foreclosure of the security property under this chapter shall be accepted for recordation by the registrar of deeds or other appropriate official of the county or counties in which the security property is located upon tendering of payment of the usual recording fees for such instruments, and without regard to the compliance of those instruments with any other local filing requirements. 

TITLE 12 > CHAPTER 38A > § 3765

[https://www.law.cornell.edu/uscode/text/12/3765 § 3765]. Effect of sale

A sale, made and conducted as prescribed in this chapter to a bona fide purchaser, shall bar all claims upon, or with respect to, the property sold, for each of the following persons: 
(1) Notice recipients 
Any person to whom the notice of default and foreclosure sale was mailed as provided in this chapter, and the heir, devisee, executor, administrator, successor, or assignee claiming under any such person. 
(2) Subordinate claimants with knowledge 
Any person claiming any interest in the property subordinate to that of the mortgage, if such person had actual knowledge of the foreclosure sale. 
(3) Nonrecorded claimants 
Any person claiming any interest in the property, whose assignment, mortgage, or other conveyance was not duly recorded or filed in the proper place for recording or filing, or whose judgment or decree was not duly docketed or filed in the proper place for docketing or filing, before the date on which the notice of the foreclosure sale was first served by publication, as required by section 3758 (3) of this title, and the executor, administrator, or assignee of such a person. 
(4) Other persons 
Any person claiming an interest in the property under a statutory lien or encumbrance created subsequent to the recording or filing of the mortgage being foreclosed, and attaching to the title or interest of any person designated in any of the foregoing paragrap