Page:United States Statutes at Large Volume 95.djvu/448

 95 STAT. 422 Multifamiiy Mortgage Foreclosure Act of 1981.

12 USC 3701 note.

PUBLIC LAW 97-35—AUG. 13, 1981 PART 6—MULTIFAMILY MORTGAGE FORECLOSURE SHORT TITLE

SEC. 361. This part may be cited as the "Multifamiiy Mortgage Foreclosure Act of 1981". FINDINGS AND PURPOSE

12 USC 3701.

12 USC 1707 42 USC 1452b.

SEC. 362. (a) The Congress finds that— (1) disparate State laws under which the Secretary of Housing and Urban Development forecloses real estate mor^ages which the Secretary holds pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964 covering multiunit residential and nonresidential properties burden the programs administered by the Secretary pursuant to these authorities, and cause detriment to the residents of the afTected projects and the community generally; (2) long periods to complete the foreclosure of these mortgages under certain State laws lead to deterioration in the condition of the properties involved; necessitate substantial Federal management and holding expenditures; increase the risk of vandalism, fire loss, depreciation, damsige, and waste with respect to the properties; and adversely affect the residents of the projects and the neighborhoods in which the properties are located; (3) these conditions seriously impair the Secretary's ability to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authorities, as well as the national housing go^ of "a decent home and a suitable living environment for every American family"; (4) application of State redemption periods to these mortgages following their foreclosure would impair the salability of the properties involved and discourage their rehabilitation and improvement, thereby compounding the problems referred to in clause (3); (5) the availability of a uniform and more expeditious procedure for the foreclosure of these mortgages by the Secretary and continuation of the practice of not applying postsale redemption periods to such mortgages will tend to ameliorate these conditions; and (6) providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts where they contribute to overcrowded calendars. (b) The purpose of this part is to create a uniform Federal foreclosure remedy for multiunit residential and nonresidentisil mortgages held by the Secretary of Housing and Urban Development pursuant to title II of the National Housing Act or section 312 of the Housing Act of 1964. DEFINITIONS

12 USC 3702.

SEC. 363. As used in this part— (1) "mortgage" means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any interest in property, real, personal or mixed, or any interest in property including leaseholds, life estates, reversionary interests, and any other estates under applicable State law, is

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