---
kind: "section"
citation: "42 U.S.C. § 1475"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1475"
heading: "Loan payment moratorium and foreclosure procedures"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1475"
units:
  - "Chapter 8A — Slum Clearance, Urban Renewal, and Farm Housing"
  - "Subchapter III — Farm Housing"
---

# §1475. Loan payment moratorium and foreclosure procedures

- (a) **Moratorium—** During any time that any such loan is outstanding, the [Secretary](/usc/42/242q–4.md?p=2) is authorized under regulations to be prescribed by him to grant a moratorium upon the payment of interest and principal on such loan for so long a period as he deems necessary, upon a showing by the borrower that due to circumstances beyond his control, he is unable to continue making payments of such principal and interest when due without unduly impairing his standard of living. In cases of extreme hardship under the foregoing circumstances, the [Secretary](/usc/42/242q–4.md?p=2) is further authorized to cancel interest due and payable on such loans during the moratorium. Should any foreclosure of such a mortgage securing such a loan upon which a moratorium has been granted occur, no deficiency judgment shall be taken against the mortgagor if he shall have faithfully tried to meet his obligation.
- (b) **Foreclosure procedures—** In foreclosing on any mortgage held by the [Secretary](/usc/42/242q–4.md?p=2) under this subchapter, the [Secretary](/usc/42/242q–4.md?p=2) shall follow the foreclosure procedures of the [State](/usc/42/2021b.md?p=14) in which the property involved is located to the extent such procedures are more favorable to the borrower than the foreclosure procedures that would otherwise be followed by the [Secretary](/usc/42/242q–4.md?p=2). This subsection shall be subject to the availability of amounts approved in appropriations Acts, to the extent additional budget authority is necessary to carry out this subsection.

## Source credit

(July 15, 1949, ch. 338, title V, § 505, 63 Stat. 434; Pub. L. 101–625, title VII, § 707, Nov. 28, 1990, 104 Stat. 4287.)

## Notes

### Editorial Notes

### Amendments

1990—Pub. L. 101–625 amended section catchline generally, designated existing provisions as subsec. (a) and inserted heading, and added subsec. (b).