---
kind: "section"
citation: "12 U.S.C. § 3705"
title: "12"
title_heading: "Banks and Banking"
number: "3705"
heading: "Prerequisites to foreclosure"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3705"
units:
  - "Chapter 38 — Multifamily Mortgage Foreclosure"
---

# §3705. Prerequisites to foreclosure


Foreclosure by the [Secretary](/usc/12/3702.md?p=10) under this chapter of a [multifamily mortgage](/usc/12/3702.md?p=2) may be commenced, as provided in [section 3707 of this title](/usc/12/3707.md), upon the breach of a covenant or condition in the [mortgage agreement](/usc/12/3702.md?p=3) for which foreclosure is authorized under the [mortgage](/usc/12/3702.md?p=1), except that no such foreclosure may be commenced unless any previously pending proceeding, judicial or nonjudicial, separately instituted by the [Secretary](/usc/12/3702.md?p=10) to foreclose the [mortgage](/usc/12/3702.md?p=1) other than under this chapter has been withdrawn, dismissed, or otherwise terminated. No such separately instituted foreclosure proceeding on the [mortgage](/usc/12/3702.md?p=1) shall be instituted by the [Secretary](/usc/12/3702.md?p=10) during the pendency of foreclosure pursuant to this chapter. Nothing in this chapter shall preclude the [Secretary](/usc/12/3702.md?p=10) from enforcing any right, other than foreclosure, under applicable [State](/usc/12/3702.md?p=8) law, including any right to obtain a monetary judgment. Nothing in this chapter shall preclude the [Secretary](/usc/12/3702.md?p=10) from foreclosing under this chapter where the [Secretary](/usc/12/3702.md?p=10) has obtained or is seeking any other remedy available pursuant to Federal or [State](/usc/12/3702.md?p=8) law or under the [mortgage agreement](/usc/12/3702.md?p=3), including, but not limited to, the appointment of a receiver, [mortgagee](/usc/12/1707.md?p=b)-in-possession status, relief under an assignment of rents, or transfer to a [nonprofit entity](/usc/12/1441a–1.md?p=2) pursuant to [section 1701q of this title](/usc/12/1701q.md) or [section 8013 of title 42](/usc/42/8013.md).


## Source credit

(Pub. L. 97–35, title III, § 366, Aug. 13, 1981, 95 Stat. 424; Pub. L. 102–550, title V, § 517(c), Oct. 28, 1992, 106 Stat. 3792.)

## Notes

### Editorial Notes

### Amendments

1992—Pub. L. 102–550 substituted “status, relief under an assignment of rents, or transfer to a nonprofit entity pursuant to section 1701q of this title or section 8013 of title 42” for “status or relief under an assignment of rents” in last sentence.