---
kind: "section"
citation: "12 U.S.C. § 3709"
title: "12"
title_heading: "Banks and Banking"
number: "3709"
heading: "Presale reinstatement"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3709"
units:
  - "Chapter 38 — Multifamily Mortgage Foreclosure"
---

# §3709. Presale reinstatement

- (a) **Grounds—** Except as provided in sections [3707(b)](/usc/12/3707.md?p=b) and [3710(c)](/usc/12/3710.md?p=c) of this title, the foreclosure commissioner shall withdraw the [security property](/usc/12/3702.md?p=7) from foreclosure and cancel the foreclosure sale only if—
  - (1) the [Secretary](/usc/12/3702.md?p=10) so directs the commissioner prior to or at the time of sale;
  - (2) the commissioner finds, upon application of the [mortgagor](/usc/12/3702.md?p=4) at least three days prior to the date of sale, that the default or defaults upon which the foreclosure is based did not exist at the time of service of the notice of default and foreclosure sale; or
  - (3)
    - (A) in the case of a foreclosure involving a monetary default, there is tendered to the foreclosure commissioner before public auction is completed the entire amount of principal and interest which would be due if payments under the [mortgage](/usc/12/3702.md?p=1) had not been accelerated; (B) in the case of a foreclosure involving a nonmonetary default, the foreclosure commissioner, upon application of the [mortgagor](/usc/12/3702.md?p=4) before the date of foreclosure sale, finds that such default is cured; and (C) there is tendered to the foreclosure commissioner before public auction is completed all amounts due under the [mortgage agreement](/usc/12/3702.md?p=3) (excluding additional amounts which would have been due if [mortgage](/usc/12/3702.md?p=1) payments had been accelerated), all amounts of expenditures secured by the [mortgage](/usc/12/3702.md?p=1) and all costs of foreclosure incurred for which payment from the proceeds of foreclosure is provided in [section 3711 of this title](/usc/12/3711.md), except that the [Secretary](/usc/12/3702.md?p=10) shall have discretion to refuse to cancel a foreclosure pursuant to this [paragraph (3)](#a-3) if the current [mortgagor](/usc/12/3702.md?p=4) or owner of record has on one or more previous occasions caused a foreclosure of the [mortgage](/usc/12/3702.md?p=1), commenced pursuant to this chapter or otherwise, to be canceled by curing a default.
- (b) **Views of Secretary—** Prior to withdrawing the [security property](/usc/12/3702.md?p=7) from foreclosure in the circumstances described in subsection [(a)(2)](#a-2) or [(a)(3)](#a-3), the foreclosure commissioner shall afford the [Secretary](/usc/12/3702.md?p=10) a reasonable opportunity to demonstrate why the [security property](/usc/12/3702.md?p=7) should not be so withdrawn.
- (c) **Mortgage subsequent to reinstatement—** In any case in which a foreclosure commenced under this chapter is canceled, the [mortgage](/usc/12/3702.md?p=1) shall continue in effect as though acceleration had not occurred.
- (d) **Subsequent foreclosures—** If the foreclosure commissioner cancels a foreclosure sale under this chapter a new foreclosure may be subsequently commenced as provided in this chapter.

## Source credit

(Pub. L. 97–35, title III, § 369A, Aug. 13, 1981, 95 Stat. 427.)